Regulatory Alerts2024-03-28 | Circular No. 02 of 2024Guidelines for the Establishment of Business Revival Units in Licensed Banks
The Central Bank of Sri Lanka mandates licensed banks to establish or reformulate Business Revival Units within 45 days to assist financially distressed but fundamentally viable borrowers through enhanced financial and operational restructuring. These units must operate independently from loan origination, follow board-approved revival policies with clear eligibility and transfer triggers, and utilize a voluntary Corporate Workout Framework for multi-bank corporate borrowers. Licensed banks are required to report quarterly performance data starting September 2024, ensure full compliance by July 2024, and publicly disclose the units' establishment to sustain asset quality and support economic recovery.
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