Regulatory Alerts2019-05-16 | Explanatory Note No. 1 of 2019Interpretations for Circular No. 7 of 2019 on Concessions Granted to Tourism Industry
The Central Bank of Sri Lanka’s Bank Supervision Department issued these interpretations to clarify eligibility, registration requirements, and moratorium application processes for tourism sector individuals and entities. Licensed banks must individually evaluate requests, grant moratoriums on performing credit facilities as of 18 April 2019, and report approvals using the prescribed format. The Institute of Chartered Accountants of Sri Lanka further mandates specific SLFRS 9 accounting treatments, detailing how banks should recognize interest income via the effective interest rate, assess substantial loan modifications for derecognition and impairment staging, and apply corresponding financial statement disclosures.
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