Regulatory Alerts2020-06-19 | FAQ No. 3 of 2020Amendments to Frequently Asked Questions No. 02 of 2020
The Central Bank of Sri Lanka has amended FAQ No. 02 of 2020 to clarify interest treatment and facility extensions for COVID-19 affected businesses and individuals. Licensed banks may now charge up to 7 percent additional annual interest on deferred term loan installments, which must be recovered at the end of the extended loan tenure rather than immediately after moratorium. The regulatory update also extends permanent and temporary overdraft facilities until 30 September 2020, caps temporary overdraft interest at 13 percent annually, and waives mandatory interest servicing during the moratorium period.
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