CBSL Announces Relief Measures for SMEs

COLOMBO (News 1st) - The Central Bank of Sri Lanka issued a Circular to Licensed Banks highlighting relief measures to be provided to the Small and Medium Enterprises (SMEs) affected due to the Easter
Sunday attack, COVID-19 pandemic, and the extraordinary macroeconomic conditions that prevailed
during the recent past.

Relief measures will only be applicable to credit facilities of SME borrowers of licensed banks that have been classified as Stage 3 (non-performing) on or after April 1, 2019, provided that SMEs initiate discussions with the bank's Business Revival Units by
March 31, 2025, subject to submission of all required documents.

All reschedulement agreements with the borrowers are required to be finalized by June 15, 2025.

Eligible SME borrowers with an aggregate capital outstanding of credit facilities below Rs. 25 Mn, repayment should start by December 31, 2025. 

For borrowers with an aggregate capital outstanding of credit facilities between Rs. 25 Mn and Rs. 50 Mn, are required to commence repayment of their rescheduled loans no later than September 30, 2025, and for loans above Rs. 50 Mn as of June 30, 2025. 

Unpaid interest (excluding capitalized interest) on the credit facilities of eligible SME borrowers will be waived under the new relief measures. 

If the aggregate Capital outstanding is above Rs. 5 Mn up to Rs. 10 Mn, interest exemption is 65% if settled within
6 Months, 50% if settled within a year and 40% if settled in more
than 12 Months but less than 60 Months.

If the aggregate Capital outstanding is above e Rs.10 Mn up to Rs. 25 Mn, interest exemption is 35% if settled within six months, 25% if settled within a year and 20% if settled in more
than 12 Months but less than 60 Months.