Regulatory Alerts2021-01-13 | Circular No. 1 of 2021Suspension of Recovery Actions Against Small and Medium Enterprises (SME) Paddy Millers
The Central Bank of Sri Lanka has directed licensed commercial and specialized banks to suspend recovery actions against small and medium enterprise paddy millers for six months, effective from 1 January 2021. Banks must defer new recovery resolutions and halt asset auctions until 30 June 2021, provided borrowers reach debt repayment agreements or submit court affidavits confirming compliance. This suspension applies to all ongoing legal proceedings and recovery measures initiated under the Recovery of Loans by Banks Act, Mortgage Act, or Finance Leasing Act.
Share