Interpretations for Circular No. 01 of 2019 on Concessions Granted to Tourism Industry

Explanatory Note No.01 of 2019

Department of Supervision of Non-Bank Financial Institutions 18 July 2019

INTERPRETATIONS FOR CIRCULAR NO. 01 OF 2019 ON CONCESSIONS GRANTED TO TOURISM INDUSTRY

The following interpretations are issued in relation the Circular No.01 of 2019 dated 21 May 2019 on Concessions Granted to Tourism Industry.

1. Registration (i) Persons and entities providing services to tourism sector and have not been registered with any of the Institutions referred in Annex I of the Circular No.01 of 2019, shall now be required to register with the Sri Lanka Tourism Development Authority, in order to avail the moratorium.

2. Granting of moratorium (i) The moratorium shall be granted for any performing credit facilities (both capital and interest) as at 18.04.2019 of eligible individuals or entities (herein after referred to as eligible borrowers). However, if such eligible borrowers wish to avail the moratorium only for capital or interest, Licensed Finance Companies (LFC) Specialized Leasing Companies (SLC) may grant such moratorium for such eligible borrowers, as requested. (ii) LFC/SLC may convert the capital or interest or both, as the case may be, falling due during the moratorium period into a new credit facility or extend the maturity of the original credit facility by the moratorium period with the consent of the eligible borrower. (iii) LFC/SLC may grant the moratorium for a lesser period, if the eligible borrower wishes to avail the moratorium for a period less than the period stipulated in Circular No. 01 of 2019 dated 21 May 2019 on concessions Granted to Tourism Industry. However, the repayment of capital, interest or both falling due during the moratorium period shall commence after three months from the end of the applicable moratorium period.

(iv) In the event, capital, interest or both falling due during the moratorium period are converted into a new facility, LFC/SLC may charge a concessionary rate of interest not exceeding the latest auction rate for 364 days Treasury Bill, at the end of the moratorium period, plus 2.50 per cent per annum, for a repayment period not exceeding two years. LFC/SLC and the borrower shall agree on the interest rate, if the repayment period exceeds two years. (v) LFC/SLC shall report the details of concessions granted to eligible borrowers and denied borrowers on a cumulative basis for the week ending on each Friday by Wednesday of the following week as per the revised format at Annex I & II.

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Circular No. 01 of 2019 Details of Borrowers Availing Concession Granted to Tourism Industry FORM 01 - Applied/Granted contracts Annex I

Name of LFC/SLC: .................... The week ending ....................

| Serial No. | Contract No | Name of the Borrower | Amount Outstanding Rs. '000' (as at 18.04.2019) | Amount Considered for Moratorium Rs. '000' | Type of Moratorium | Period of Moratorium | New loan created for amount falling due during Moratorium period | Status of the Moratorium | Remarks | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | | | | | | Repayment Period | Interest Rate | | | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |

Notes: Column 4 - Total exposure of the contract as at the date (capital outstanding and interest dued outstanding) Column 6 - Granted extension to original maturity of the facility (E), converted capital (C), Interest (I) or both (C1) to a new facility Column 7 - Report the moratorium period Column 9 - Report the applicable interest rate for the new facility or interest free facility Column 10 - Report whether moratorium has been granted or under approval process Column 11 - Provide additional information, if any

Please email to snbfid@cbsl.lk by Wednesday of the following week

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Circular No. 01 of 2019 Details of Borrowers Availing Concession Granted to Tourism Industry FORM 02 - Denied Applications Annex II

Name of LFC/SLC: .................... The week ending ....................

Serial No.	Contract No	Name of the Borrower	Amount Outstanding Rs. '000' (as at 18.04.2019)	Reasons for not granting the Moratorium	Remarks
1	2	3	4	5	6

Notes: Column 4 - Total exposure of the contract as at the date (capital outstanding and interest dued outstanding) Column 6 - Provide additional information, if any

Please email to snbfid@cbsl.lk by Wednesday of the following week