Regulatory Alerts2020-01-30 | Circular No. 02 of 2020Credit Support to Accelerate Economic Growth
The Central Bank of Sri Lanka issued Circular No. 02 of 2020 to establish a special credit support scheme for eligible Small and Medium Enterprises across manufacturing, services, agriculture, and construction sectors. Licensed banks must operationalize the scheme by March 31, 2020, providing capital moratoriums, interest waivers for non-performing loans, loan extensions, and a government-backed credit guarantee to borrowers with outstanding exposures up to Rs. 300 million. The guidelines mandate monthly reporting, suspended legal recoveries for participating borrowers, and adjusted credit bureau scoring to ensure the scheme accelerates economic growth without threatening banking system stability.
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