The Central Bank of Sri Lanka (CBSL) has issued a circular instructing all licensed banks to implement relief measures for individuals and businesses whose income or operations have been directly affected by the ongoing adverse conditions.
Under the new directive, banks may offer a suspension of capital and/or interest repayments on existing credit facilities for a period of three to six months. This relief will be granted on a case-by-case basis, taking into account the borrower’s risk profile, future repayment capacity, and overall viability in the post-disaster environment.
The circular also directs licensed banks to provide new loan facilities to affected individuals and businesses, considering their debt-servicing ability and in line with regulatory requirements. Importantly, banks have been instructed not to reject new loan applications solely based on negative CRIB records.
Additionally, all licensed banks must report details of the relief measures granted—and any rejections—under this circular to the Director of Bank Supervision. These reports must be submitted monthly, within 15 days after the month’s end, beginning 31 December 2025.
