By: Staff Writer
March 27, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has reassured borrowers who face challenges in securing loan restructuring support from financial institutions that they can lodge complaints with the Financial Consumer Relations Department (FCRD).
This assurance came from CBSL Governor Dr. Nandalal Weerasinghe in response to concerns raised by small and medium-sized enterprises (SMEs) regarding inadequate assistance from the banking sector. However, he noted that with only around 500 requests for support, the issue does not appear to be widespread.
Dr. Weerasinghe highlighted that banks had continuously supported SMEs during the economic crisis and that recent economic improvements, including lower interest rates and inflation, have benefited businesses.
Additionally, he pointed out that non-performing loans (NPLs) in the banking sector have decreased to approximately 12% from nearly 14% previously.
In a separate statement, the CBSL emphasized that in coordination with the Sri Lanka Banks’ Association (Guarantee) Ltd. (SLBA), relief measures have been extended to affected SMEs through licensed commercial and specialized banks.
These measures were outlined in Circular No. 04 of 2024, dated 19 December 2024, and its addendum, Circular No. 01 of 2025, dated 1 January 2025. These directives aim to ensure consistent implementation of relief initiatives across all licensed banks.
With the deadline of 31 March 2025 fast approaching, borrowers are urged to engage with their respective banks to access these relief measures.
Those facing rejection or disputes are encouraged to appeal to the Director of FCRD through various channels, including the hotline 1935, telephone number 0112477000, fax 0112477744, postal correspondence to the Central Bank’s Financial Consumer Relations Department, or via the CBSL website (www.cbsl.gov.lk/fcrd).
The relief measures available to SMEs include rescheduling of credit facilities for up to 10 years, extension of repayment commencement periods based on outstanding capital, conditional waivers of unpaid interest, and the provision of new working capital loans. Despite these offerings, only a limited number of borrowers have taken advantage of the available support so far.
In addition to these measures, the CBSL and the banking sector have implemented further initiatives to aid businesses in their recovery. As part of these efforts, the CBSL issued Circular No. 02 of 2024 on 28 March 2024, mandating banks to establish Business Revival Units (BRUs) to support struggling but viable businesses.
These BRUs provide assistance such as restructuring and rescheduling credit facilities, adjusting interest rates and maturities, offering interim financing, and providing advisory services—contingent on the submission of viable business and repayment plans.
By the end of 2024, banks had facilitated around 6,000 cases through these BRUs, demonstrating ongoing efforts to support business recovery and sustainability. The CBSL remains committed to ensuring that SMEs receive the financial assistance needed for their continued growth and stability.
