RegAlertRule · CBSL · 10 Sep 2021 · Circular No. 7 of 2021
Amendment to Circular No. 06 of 2021 on Concessions for COVID-19 Affected Businesses and Individuals
The Central Bank of Sri Lanka issued Circular No. 07 of 2021 to extend and modify financial concessions for non-bank financial institutions supporting COVID-19 affected borrowers until 30 September 2021. The updated regulations mandate the suspension of penal interest, recovery actions on newly classified non-performing loans, and early settlement fees while permitting up to fifteen working days of repayment delays without restructuring. These adjustments ensure continuous credit facility support and reduced financial burdens for eligible businesses and individuals during the pandemic recovery period.
[Logo of Central Bank of Sri Lanka]
MONETARY BOARD
CENTRAL BANK OF SRI LANKA
10 September 2021 | CIRCULAR | No. 07 of 2021
AMENDMENT TO CIRCULAR NO. 06 OF 2021 ON CONCESSIONS FOR COVID-19 AFFECTED BUSINESSES AND INDIVIDUALS
Central Bank of Sri Lanka issues following amendments to the Circular No. 06 of 2021 on concessions for COVID-19 affected businesses and individuals.
Paragraph 1(a), 1(e), 1(f), 2(c) and paragraph 4 will be amended as follows. All other clauses will remain unchanged.
1. (a) NBFIs shall extend the deferment of recovery of capital, interest, or both of the existing credit facilities of borrowers who enjoying the deferment under Circular No. 06 of 2021 until 30 September 2021.
1. (e) Penal interest shall not be accrued or charged during the concessionary period, i.e., up to 30 September 2021.
1. (f) NBFIs shall accommodate any request from affected borrowers to delay the due dates of loans repayment by few days (maximum 15 working days) due to the quarantine lockdown without deferring or re-structuring such facilities. NBFIs shall not charge any additional interest or other charges for such delay.
2. (c) NBFIs shall suspend all types of recovery actions against credit facilities of eligible borrowers that have been classified as non-performing on or after 01 April 2020, until 30 September 2021.
4. NBFIs shall not charge any early settlement fee for eligible borrowers under this circular, in the case where a borrower has expressed his willingness to settle his/her existing credit facilities on or before 30 September 2021, instead of opting for the deferment or restructuring of the existing credit facility/facilities.
[Signature]
Prof. W D Lakshman
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka
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- Circular No. 06 of 2021 on concessions for COVID-19 affected businesses and individualsNot in RegAlert
“Central Bank of Sri Lanka issues following amendments to the Circular No. 06 of 2021 on concessions for COVID-19 affected businesses and individuals.”
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