News
Central Bank extends debt moratorium till December 31
Banks asked to prioritise requests made by MSME sector
With a view to meeting the challenges faced by businesses and individuals due to the new surge in COVID-19 outbreak in Sri Lanka, the Central Bank of Sri Lanka (CBSL) has directed licensed commercial banks and licensed banks to extend the debt moratorium to COVID-19 affected businesses and individuals for a further period of three months till 31 December 2021.
This directive to the licensed commercial banks was issued on Wednesday, September 1.
Accordingly, this circular is issued to give effect to the scheme in a consistent manner across all licensed banks.
However, licensed banks may offer any additional concessions to borrowers in a way that the overall benefits to borrowers are not less than the benefits offered under this circular.
The Central Bank further said: “The latest extension is not applicable for borrowers in the tourism sector who are eligible to obtain concessions granted for the tourism sector separately. (Tourism sector debt moratorium expires on 30 September).Banks are required to ensure deferment or restructuring of existing credit facilities in the performing category as of 1 September.”They can defer recovery of capital, interest or both of the existing performing credit facilities of borrowers who are affected by COVID-19, on case-by case basis, during the period up to 31 December, considering the financial difficulties faced by such borrowers, including loss of job, loss or reduction of income/salaries or sales, reduction or impairment business operations or the closure of business, etc.””Banks have been requested to prioritise accommodating the requests for concessions made by borrowers in the Micro, Small and Medium Enterprises (MSME) sector.””The deferment of capital, interest or both should be granted for one or more of the existing credit facilities granted in rupees and/or in foreign currencies, considering the financial difficulties and repayment capacity of the eligible borrowers. They can amalgamate the amounts fallen due during the previous moratorium/deferment schemes (i.e., capital, interest and applicable interest for the respective moratorium/deferment period on the respective moratorium/deferred amount) and the amounts falling due during the current scheme (i.e., capital and interest) in to one new loan.””Banks may charge an interest rate commencing from 1 September, on the new loan referred above and for the agreed period of repayment based on a separate loan amortisation schedule for this period.””In the case of rupee facilities considered for the deferment, banks may charge an interest rate not exceeding the latest available 364-days Treasury Bills auction rate as of 31 August plus 1% per annum (i.e., 5.93% + 1% = 6.93%).””In the case of foreign currency loans, licensed banks may charge a concessionary rate of interest. Further, interest for the remaining capital outstanding balance, excluding the deferred capital amount of the existing facility will continue to accrue at the contracted interest rate after the end of the deferment period.””In the case of instalment loans, including lease facilities, a licensed bank and the respective borrower need to agree on a repayment period commencing from 1 July 2022, up to six months, to settle the new loan referred to above, considering the financial difficulties faced by such borrowers. The borrower may commence the repayment of the new loan at an earlier date, if the borrower wishes to do so. However, the borrower shall commence repayment of existing facilities from 1 January 2022.””In the case where a borrower requests for a period beyond six months to settle the new loan, the borrower and the bank need to agree on a concessionary interest rate beyond the six-month period.””Banks should explain the benefits of commencing early repayment and the implications of extending the repayment period to the borrower, in order to encourage the borrower to commence early repayment of the deferred amount.””Alternatively, banks may restructure the existing credit facilities, on a case-by-case basis, over a longer period, considering the repayment capacity of the borrower and an acceptable revival plan. In this case, the licensed bank and the borrower shall agree on an interest rate, considering the prevailing low interest rates,” the Central Bank said.
News
Iranian ships stranded, Lanka fears US sanctions
‘Companies may face US sanctions’: Lanka to put ‘national interest’ first as 19 Iranian vessels seek help
(ToI) Sri Lanka said on Friday it would “prioritise our national interests” before providing assistance to the crews of 19 Iranian ships anchored in international waters near the island nation.The crews are facing shortages of food, water and fuel. A foreign ministry spokesperson cited the risk of US sanctions against Sri Lankan companies supplying the vessels as a key concern.
The United States and Iran have been at war since February 28, when the US and Israel launched joint strikes against the Islamic Republic.
“Sri Lanka will put its national interest first before considering any help, and the companies that supply ships are aware of possible secondary sanctions from the United States,” spokesperson Thushara Rodrigo told reporters, ruling out any immediate assistance to the vessels.
Rodrigo clarified, however, that Sri Lanka had received no communication from the United States warning of repercussions if it decided to assist the vessels.According to Rodrigo, the ships are stationed 24 nautical miles off Sri Lanka’s coast.The Iranian Embassy said it had no information on the matter.
In March, a US torpedo attack sank the Iranian naval vessel IRIS Dena in Sri Lankan waters, killing 87 sailors.
The ship was returning to Iran after participating in a naval exercise at India’s invitation. A second Iranian vessel was brought to a Sri Lankan port after its crew reported technical problems.
Wounded sailors were treated at Sri Lankan hospitals, while those rescued from the second vessel were safely repatriated to Iran.
Sri Lanka is still recovering from an economic crisis, with both the United States and Iran serving as important trading partners. Washington played a key role in securing an International Monetary Fund bailout and supporting Sri Lanka’s agricultural sector to help avert a food crisis.
News
Sri Lanka CERT warns of overseas university admission scams
Sri Lanka CERT has warned the public of fraudulent social media advertisements offering admission to foreign universities after receiving complaints from parents and students who have lost hundreds of thousands of rupees to scammers.
The fraudsters reportedly pose as representatives of reputed foreign universities, promising admission, student visas, work permits and even eventual citizenship in return for registration fees and initial tuition payments.
They use convincing videos, photographs and documents circulated via email and WhatsApp to gain the confidence of unsuspecting victims before asking them to transfer money to foreign bank accounts. The scammers then disappear after receiving the payments, Sri Lanka CERT said.
The agency has urged prospective students and their parents to verify the authenticity of university representatives, documents and bank account details before making payments, and to seek overseas education opportunities only through legitimate and recognised channels.
News
Navi Pillay’s Lankan affairs in focus as she wins 2026 Nobel Peace Prize
Former UN High Commissioner for Human Rights and International Court of Justice judge Navanethem “Navi” Pillay has won the 2026 Nobel Peace Prize for her contribution to international law and efforts to promote peace, the Norwegian Nobel Committee announced in Oslo on Friday.
Announcing the award, committee chairman Jørgen Watne Frydnes said Pillay had “significantly enlarged the scope and impact of international law” and helped advance “a more comprehensive global legal order” with exceptional courage. He also praised her long career, which began as a lawyer confronting deep-rooted discrimination in South Africa, and described her as a person with a “firm moral compass”.
Pillay, 85, served as the UN High Commissioner for Human Rights from 2008 to 2014. Her tenure brought her into sharp focus in Sri Lanka, particularly over her assessment of the country’s human rights situation in the aftermath of the decades-long civil war.
During an official fact-finding visit to Sri Lanka from August 25 to 31, 2013, Pillay travelled to areas including Jaffna, Kilinochchi and Trincomalee, where she met civil war survivors, families of the disappeared and local communities.
Following the visit, she warned that Sri Lanka was moving towards authoritarianism and highlighted what she described as a persistent climate of fear.
She also reported intimidation and harassment of people who had sought to meet her during the mission.
Pillay urged the UN Human Rights Council to establish an international inquiry mechanism to investigate alleged war crimes and crimes against humanity committed by both government forces and the LTTE during the final stages of the 26-year civil war.
Her observations and recommendations became a significant part of international scrutiny of Sri Lanka’s post-war human rights record.
The Norwegian Nobel Committee received 287 nominations for this year’s Peace Prize, slightly more than a quarter of them being organisations. The committee traditionally considers efforts to promote peace, international fraternity and institutions that contribute to lasting stability.
Last year, Venezuelan opposition leader Maria Corina Machado won the prize for her campaign for a democratic transition in Venezuela. She was praised as a woman who kept the flame of democracy burning amid growing darkness.
The 2026 award marks the 125th anniversary of the Nobel Peace Prize, first presented in 1901. Over its history, the prize has recognised prominent figures and organisations involved in advancing peace, human rights and international cooperation.
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