Regulatory Alerts2019-05-21 | Circular No. 1 of 2019Concessions Granted to Tourism Industry
The Central Bank of Sri Lanka directed Licensed Finance Companies and Specialised Leasing Companies to grant moratoriums on performing loans to tourism sector entities affected by national circumstances. The directive mandates that capital and interest due until March 2020 be converted into term loans recoverable from July 2020, while allowing institutions to maintain existing loan classifications and waive penal interest during the relief period. Additionally, the document incorporates accounting clarifications from the Institute of Chartered Accountants of Sri Lanka regarding the recognition of interest income and impairment assessment under SLFRS 9 for these modified financial assets.
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