Regulatory Alerts2020-03-27 | Instructions to CEOs of LCBs and LSBsCentral Bank of Sri Lanka Extraordinary Regulatory Measures to Support COVID-19 Affected Businesses and Individuals
The Central Bank of Sri Lanka has issued extraordinary regulatory measures granting licensed commercial and specialized banks immediate flexibility to support businesses and individuals impacted by the COVID-19 outbreak. The Monetary Board permits banks to draw down capital conservation buffers by up to 100 basis points, defer minimum capital enhancement until end-2022 while restricting dividend distributions, and extend loan classification rules to treat payment term modifications as adjustments rather than restructurings. Additional provisions include a 60-day grace period for past-due loans, an option to convert and recover foreign currency loans in rupees, a three-month extension for rectifying supervisory findings, and extended deadlines for statutory returns and financial statement publications.