Regulatory Alerts2022-07-07 | Circular No. 2 of 2022Concessions to Affected Borrowers Amidst the Prevailing Extraordinary Macroeconomic Circumstances
The Central Bank of Sri Lanka requires licensed banks to provide targeted concessions, including grace periods, restructuring, and interest rate caps not exceeding 15.5%, to affected performing and non-performing borrowers amid severe macroeconomic challenges. Banks must suspend recovery actions, including forced repossession and asset auctions, until December 31, 2022, while allowing borrowers to settle loans early without additional fees and appealing rejected requests to the Financial Consumer Relations Department. Licensed institutions are mandated to report concession details monthly, maintain transparent approval processes within one month of application, and adhere to specific accounting standards for impairment and credit risk assessment.