SMEs urged to apply for CBSL relief measures before 31 March deadline
- CNL Reporter
- March 28, 2025
- Banking and Financial
- SMEs urged to apply for CBSL relief measures before 31 March deadline
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The Central Bank of Sri Lanka (CBSL) this week urged borrowers to avail themselves of relief measures introduced to support small and medium-sized enterprises (SMEs) before the March 31, 2025 deadline.
These measures, implemented in collaboration with the Sri Lanka Banks’ Association (SLBA), were outlined in Circular No. 04 of 2024 on December 19, 2024, and its addendum, Circular No. 01 of 2025 on January 1, 2025.
Borrowers who encounter rejections or disputes regarding these relief measures are encouraged to first contact their respective banks.
If issues remain unresolved, they may appeal to the Director of the Financial Consumer Relations Department of the CBSL through designated channels, the Central Bank said.
The relief package includes options such as rescheduling credit facilities for up to 10 years, extending repayment commencement periods based on outstanding capital, waiving unpaid interest under specific conditions, and providing new working capital loans.
To qualify, borrowers must submit acceptable business revival plans demonstrating their repayment capacity. Despite the availability of these benefits, only a limited number of borrowers have approached licensed banks to-date.
In addition to these measures, the CBSL issued Circular No. 02 of 2024 on March 28, 2024, titled ‘Guidelines for the Establishment of Business Revival Units of Licensed Banks,’ mandating banks to establish Business Revival Units (BRUs).
These units aim to assist viable businesses facing financial and operational difficulties by offering support such as restructuring and rescheduling of credit facilities, adjusting interest rates, extending maturities, providing interim financing, and offering advisory services. By the end of 2024, approximately 6,000 services had been facilitated through these BRUs.
