Regulatory Alerts2026-01-09 | Circular No. 1 of 2026Relief Measures to Assist Individuals and Businesses Affected by Recent Cyclonic and Flood Disasters
The Central Bank of Sri Lanka issued Circular 01 of 2026 directing Finance Companies to provide debt relief and new lending concessions to borrowers directly impacted by recent cyclonic and flood disasters. The measures include temporary suspension of capital and interest repayments for up to six months, a prohibition on late fees until February 2026, and mandatory interest rate reductions of at least 3% for new loans granted within two years. Finance Companies must also ensure transparent communication with borrowers, prevent adverse credit scoring impacts from reported concessions, and submit monthly compliance reports to the regulator.
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