News

CB issues guidelines to establish Business Revival Units in licensed banks to help rescue viable troubled businesses

Published

2 years ago

2024/04/4

The Central Bank has issued guidelines for the establishment of Business Revival Units (BRU) in licensed banks to support the revival of viable businesses, the CBSL said in a statement on Wednesday (03).

The aim of setting up the BRUs is to assist both performing and non-performing borrowers of licensed banks whose businesses are fundamentally viable to revive, the statement said.

It said that the licensed banks have already established Post COVID-19 Revival Units and the CBSL has issued guidelines to strengthen the functions of the above units and reformulate such units as BRUs.

The enhanced scope of proposed BRUs will facilitate sustainable revival of viable businesses affected by the extraordinary macroeconomic conditions, the CBSL said.

The challenging macroeconomic conditions that prevailed during the recent years have disrupted businesses, adversely impacting the ability of borrowers to duly repay their loans, and thereby impairing the recovery process of licensed banks, the statement said.

The CBSL said licensed banks are required to have robust business revival and rehabilitation policies and procedures to support the revival of businesses, and large banks with more than 50 branches, may consider establishing BRUs at large branches/regional offices of banks, in order to support the revival of businesses of affected borrowers more effectively and efficiently.

CBSL added that the fundamental viability of a business is a key factor in the consideration of business revival by a licensed bank, and that in the viability assessment, both financial and non-financial indicators are taken into consideration.

The borrower’s continuous cooperation will be critical for the process of reviving a stressed business, CBSL said.

The business can be revived through both financial and operational restructuring tools and processes, and the selection of an appropriate set of revival tools is subject to the mutual agreement of parties involved in the revival process, CBSL said.

Licensed banks are required to establish BRUs by mid-May 2024, and be fully compliant with the requirements of the Circular by July 1, 2024, it said.

According to the Department of Census and Statistics about 20 percent of small and medium scale businesses had been closed down during COVID pandemic and the subsequent economic crisis.

All News Advertisement

Related Topics:CBSL The Central Bank of Sri Lanka

Up Next

Udaya: Govt. planning to hold presidential and general elections simultaneously

Don't Miss

Deaths in police custody continue in spite of issuance of guidelines

Click to comment

Latest News

Landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara Eliya

Published

8 hours ago

2026/01/8

Priyan

The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale and Nuwara Eliya for the next 24 hours commencing at 1200hrs today [08]

Accordingly
LEVEL II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Ududumbara in the Kandy District, Wilgamuwa in the Matale District, and Nildandahinna and Walapane in the Nuwara Eliya District.

LEVEL I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Meegahakiwula, Welimada, Kandaketiya, Lunugala, Badulla, Passara, Uva Paranagama and Hali_Ela in the Badulla District, Ambanganga Korale in the Matale District, and Mathurata and Hanguranketha in the Nuwara Eliya District.

Latest News

Warning for deep depression over South-east Bay of Bengal Sea area

Published

14 hours ago

2026/01/8

Priyan

Deep depression Track. [Source: RSMC]

Warning for deep depression over South-east Bay of Bengal Sea area.
Issued by the Natural Hazards Early Warning Centre, Department of Meteorology at 10.30 a.m. on 08 January 2026 for the period until 10.30 a.m. 09 January 2026

The depression in the Bay of Bengal to the southeast of Sri Lanka has intensified into a deep depression and is centered near latitude 5.4°N and longitude 85.3°E, about 420 km southeast of Pottuvil at 05.30 a.m. today (08th). The above system is currently (10:00 a.m.) located about 300 km southeast of Pottuvil.

It is very likely to move west-northwestwards across the southwest Bay of Bengal and cross the Sri Lanka coast between Hambantota and Kalmunai between 5.30 p.m. to 11.30 p.m. on Friday [9th January 2026].

Hence, showery, and windy condition over the island, particularly in the Northern, NorthCentral, Eastern, Uva and Central provinces is expected to enhance from today (08th).

For the Land area:

DAMAGE EXPECTED:
• Damage to huts, temporary shelters and light structures
• Destroy the roof tops/ sheets etc.
• Damage to power and communication lines.
• Breaking of tree branches and uprooting of large avenue trees.
• Damage to paddy crops, banana, papaya trees and orchards.
• Damage to harbor yachts
• Flash flood
• Sea water inundation in low lying areas in the near coast.

Action suggested for the Land area:
• Coastal hutment dwellers are advised to move to safer places. Other people in the affected areas to remain indoors.
• People living in hilly areas (particularly landslide prone areas) and low lying areas in river basins are requested to be vigilant.
• Drivers and people using roads in the hilly areas are requested to be vigilant.
• Beware of fallen trees and power lines.
• Avoid using wired telephones and connected electric appliances during thunderstorms.
• General public is requested to be vigilant regarding impending extreme weather situation.
• For emergency assistance contact the local disaster management authorities.
• Requested to be attentive about future advisories issued by the Department of Meteorology in this regard.

Latest News

Showers above 100 mm are likely at some places in the Eastern and Uva provinces and showers about 50-75 mm in other areas

Published

20 hours ago

2026/01/8

Priyan

WEATHER FORECAST FOR 08 JANUARY 2026
Issued at 05.30 a.m. on 08 January 2026 by the Department of Meteorology

The depression over the Bay of Bengal, located to the southeast of Sri Lanka, was centered near latitude 5.3°N and longitude 86.0°E, about 490 km southeast of Pottuvil, at 11:30 p.m. yesterday (07). It is expected to move west-northwestwards and towards the eastern coast of the island during next 24 hours. This system is likely to intensify further into a deep depression during the next 12 hours.

Cloudy skies can be expected over most parts of the island.
Showers or thundershowers will occur at times in the Northern, North-central, Eastern, Uva, Central and Southern provinces. Showers or thundershowers may occur at several places elsewhere in the Island after 1.00 p.m. Heavy showers above 100 mm are likely at some places in the Eastern and Uva provinces. Fairly Heavy showers about (50 – 75) mm are likely at some places in the other areas of the island.

Strong winds about (50-60) kmph can be expected at times over the Eastern slopes of the central hills, the Northern, North-central, North-western and Eastern provinces and in Hambantota, Gampaha, Colombo and Monaragala districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.