Addendum to Circular No. 04 of 2024 on Relief Measures for SMEs

CENTRAL BANK OF SRI LANKA
01 January 2025 CIRCULAR No. 01 of 2025 1 ADDENDUM TO THE CIRCULAR NO. 04 OF 2024 ON RELIEF MEASURES TO ASSIST THE AFFECTED SMALL AND MEDIUM ENTERPRISES The Central Bank of Sri Lanka hereby issues the following Addendum to further clarify Circular No. 04 of 2024 on Relief Measures to Assist the Affected Small and Medium Enterprises (SMEs) with a view to ensuring effective implementation of the relief measures specified in the cited Circular in a consistent manner across all licensed banks. Licensed banks shall establish a Relief Banking Unit for the purpose of extending and monitoring the relief measures under the cited Circular for the effective implementation of such relief measures while the existing Business Revival Units established under Circular No. 02 of 2024 on Guidelines for the Establishment of Business Revival Units in Licensed Banks, will continue for the intended purpose thereof. The following will be inserted as Paragraph No. 1.4 and existing Paragraph No. 1.4 is renumbered as 1.5.

1. Features of the Relief
   Measures
   1.4 Licensed banks may reschedule the credit facilities of eligible
   borrowers for a maximum period up to ten years, unless the original agreement has provided a period longer than ten years, on a case-by-case basis, considering the repayment capacity of the borrower and an acceptable revival plan. In this regard, licensed bank and the eligible borrower shall agree on the terms and conditions including the interest rates considering the prevailing benchmark interest rates. The following will be inserted as Paragraphs No. 3.3
2. Transparency of
   provision of relief measures
   3.3 Licensed banks are requested to establish a transparent
   grievance-handling mechanism with respect to any dispute that may arise between the bank and the borrower on the valuation of auctioned properties.

01

[Limited Sharing]#
Bank Name Annexure A
Reporting as at
Total Amount
Considered for
Rescheduling
(Rs. 000s)
Tenor of the
Rescheduled
Loan
Applicable
Interest Rate on
Rescheduled
Loan (%)
Agreed Date of
Commencement of
Repayment
(DD/MM/YYYY)
Has the
Repayment
Commenced
(Yes/No)
Total Amount
Considered for
Rescheduling
(Rs. 000s)
Tenor of the
Rescheduled
Loan
Applicable
Interest
Rate on
Reschedul ed Loan
(%)
Interest
Waived off by the banks on rescheduling (Rs. '000s) Agreed Date of Commencement of Repayment (DD/MM/YYYY) Has the Repayment Commenced (Yes/No) Outstanding Interest as at the Date of Rescheduling (Rs. '000s) Outstanding Charges or Fees as at the Date of Rescheduling (Rs. '000s) Charges or Fees Waived off as at the Date of Rescheduling (Rs. '000s) Rescheduled Loan for the Capital Rescheduled Loan for the Interest If Rescheduled Serial No. Monthly Reporting of Details of the Borrowers who Approached Banks to Avail the Relief Measures Provided Under Circular No. 04 of 2024 from 15.12.2024 to the Reporting Date Date of Classifying to Stage 3 (DD/MM/YY YY) Facility Number Borrower Name Amount Outstanding as at 15.12.2024 Date of Commencement of Discussion (DD/MM/YYYY) Status of the Discussion (Rescheduled/ Rejected/ Under Discussion) If Rejected, Reasons for Rejection Interest (Rs. 000's) Capital (Rs. 000's) Date of Rescheduling (DD/MM/YY YY) Outstanding Capital as at the Date of Rescheduling (Rs. '000s)