The Central Bank of Sri Lanka (CBSL) has announced relief measures for Small and Medium Enterprises (SMEs) impacted by the Easter Sunday attacks, the COVID-19 pandemic, and the recent macroeconomic challenges. The guidelines, developed in collaboration with the Sri Lanka Banks’ Association, align with the Special Provisions Amendment Act No. 26 of 2024.
Key Features of the Relief Measures
- Loan Rescheduling:
- Non-performing loans will be rescheduled based on the borrower’s repayment ability and a viable business revival plan.
- Banks must finalize rescheduling agreements by June 15, 2025.
- Repayment Deadlines:
- SMEs with loan balances below Rs. 25 million: Repayment starts by December 31, 2025.
- Loans between Rs. 25 million and Rs. 50 million: Repayment starts by September 30, 2025.
- Loans above Rs. 50 million: Repayment starts by June 30, 2025.
- Interest Waivers:
SMEs may qualify for interest waivers on unpaid amounts from April 2019 to December 15, 2024, based on settlement timelines:- 65% waiver: If settled within 6 months for loans between Rs. 5 million and Rs. 10 million.
- 50% waiver: If settled within 12 months.
- 40% waiver: If settled within 1 to 5 years.
- Support for New Loans:
- Banks are prohibited from rejecting new loan applications solely based on adverse CRIB records.
- Appeals Process:
- Borrowers denied relief must be informed of the reasons and given the option to appeal to the Director of the Financial Consumer Relations Department at CBSL.
Eligibility and Deadlines
- The relief measures are available to SME borrowers whose loans became Stage 3 non-performing loans after April 1, 2019.
- SMEs must engage with their bank’s Business Revival Units and submit the required documents by March 31, 2025 to qualify for assistance.
These initiatives aim to support SMEs in recovering from past challenges, ensuring their continued contribution to the national economy.
