The Central Bank of Sri Lanka (CBSL) has issued a new circular instructing all licensed banks to extend relief measures to individuals and businesses whose income or operations have been directly impacted by the ongoing adverse weather conditions.
Under the directive, banks are required to implement the following measures:
- Suspension of Loan Repayments:
Licensed banks may suspend the repayment of capital and/or interest on existing credit facilities for a period of 3 to 6 months, on a case-by-case basis. This decision should consider the borrower’s risk level, future repayment capacity, and medium-term viability in the post-disaster environment. - New Loan Facilities:
Banks are encouraged to grant new loan facilities to affected individuals and businesses after evaluating their debt servicing ability, subject to existing regulatory requirements. - No Rejection Solely Based on CRIB Records:
Banks must not reject new loan applications solely due to adverse Credit Information Bureau (CRIB) records.
Additionally, licensed banks have been instructed to report all relief measures granted or rejected under this circular to the Director of Bank Supervision by the end of each month. The reporting must begin on 31 December 2025 and be submitted within 15 calendar days of each month’s end.
The CBSL said the measures aim to ease financial pressures on affected citizens and support economic recovery in the aftermath of the disaster.
