Regulatory Alerts2020-07-16 | Circular No.07 of 2020Relief Measures to Assist Covid-19 Affected Business and Individuals
The Central Bank of Sri Lanka issued Circular No. 07 of 2020 to provide relief to tourism sector businesses and individuals affected by the pandemic. Licensed financial institutions are required to extend the moratorium period for capital outstanding on leasing facilities for tourism-related vehicles from six to twelve months. Additionally, institutions may recover interest during this period in a manner convenient to borrowers and must waive accrued penal interest on these specific facilities.
MONETARY BOARD CENTRAL BANK OF SRI LANKA 16 July 2020 CIRCULAR No. 07 of 2020 RELIEF MEASURES TO ASSIST COVID-19 AFFECTED BUSINESSES AND INDIVIDUALS The Central Bank of Sri Lanka, considering the potential adverse impact of COVID-19 pandemic on tourism sector businesses and individuals, requests licensed commercial banks, licensed specialised banks, licensed finance companies and specialised leasing companies (hereinafter referred to as Financial Institutions) to provide the following relief measures to eligible borrowers:
- Financial institutions shall extend the existing 6 months moratorium period granted in terms of Paragraphs 2 and 3 of Circular No. 05 of 2020 issued on 27 March 2020 to 12 months in respect of capital outstanding of leasing facilities granted to tourism related vehicles.
- Financial institutions may recover interest during the moratorium period from eligible borrowers referred to in paragraph (1) above, in a manner that is not inconvenient to the borrower.
- Financial institutions shall waive off the accrued penal interest in respect of leasing facilities granted to tourism related vehicles.