Regulatory Alerts2021-03-10 | Circular No. 3 of 2021Concessions for Lease Facilities Obtained by Businesses and Individuals in Passenger Transportation Sector
The Central Bank of Sri Lanka issued Circular No. 03 of 2021 to require licensed banks to grant a six-month deferment of lease installments starting 1 April 2021 for COVID-19 affected businesses and individuals in the passenger transportation sector. The directive mandates extending lease tenures by the deferment period, capping interest on deferred amounts at the 364-day Treasury Bill auction rate plus one percent, and waiving unpaid penal interest accrued by 1 April 2021. Licensed banks must process eligible applications expeditiously, clearly communicate concession structures to borrowers, and submit monthly reports detailing deferred facilities to the Bank Supervision Department.
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