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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
US Supreme Court rejects Trump mail ballot restrictions ahead of midterms
The US Supreme Court has rejected President Donald Trump’s bid to allow the US Postal Service to enforce a rule targeting mail-in ballots.
On Monday, the conservative-majority court refused to lift an order by US District Judge Indira Talwani that blocked the measure, dealing a blow to Trump’s efforts to restrict voting by mail before the November midterm elections.
The postal agency adopted the rule after Trump signed an executive order in March seeking to tighten rules around mail-in voting. Under this measure, states were required to send the Postal Service a list of recipients and use ballot mail envelopes previously approved by the agency.
The Postal Service was allowed to deny ballots if they failed to comply with the new standards or were not associated with registered voters on the lists.
Talwani imposed an injunction blocking the rule, saying that it likely violated the US Constitution and would be impossible to apply given the nearing midterms.
Shortly after, the Trump administration issued an emergency request to the Supreme Court urging it to allow an “important federal policy to protect the mails from being used to commit voter fraud”.
In late August, the Supreme Court had temporarily allowed Trump to move ahead with his executive order on procedural grounds, but did not rule on the legality of the plan.
In the latest decision, the court said in an unsigned order that the administration was “unlikely to succeed on the merits” of its challenge. Justice Samuel Alito and Justice Clarence Thomas dissented, with Alito writing that some plaintiffs lacked standing while the rest were pursuing a claim the court had recently called a “Hail Mary pass”.
[Aljaeera]
Latest News
Eastern Province Divisional Secretariats recognized for outstanding performance
The “Mehewara Pasasum” programme to recognise Divisional Secretariats in the Eastern Province that demonstrated the highest level of performance in 2025 was held recently at the Swami Vipulananda Institute of Aesthetic Studies of the Eastern University, under the patronage of Prime Minister Dr Harini Amarasuriya. The programme was held as part of the initiative to decentralise President’s Fund services to the Divisional Secretariat level, with the aim of providing the public with a more efficient and prompt service.
Of the Divisional Secretariats in the three districts of Ampara, Batticaloa and Trincomalee, nine Divisional Secretariats, three from each district, were selected for recognition based on their efficiency in receiving President’s Fund applications and responding to them promptly.
Accordingly, the Sammanthurai Divisional Secretariat secured first place in the Ampara District, while the Addalachchenai Divisional Secretariat secured second place and the Kalmunai Divisional Secretariat third place.
In the Batticaloa District, first place was secured by the Kattankudy Divisional Secretariat, second place by the Manmunai North Divisional Secretariat and third place by the Koralaipattu Central Divisional Secretariat.
In the Trincomalee District, first place was secured by the Trincomalee Town and Gravets Divisional Secretariat, second place by the Kinniya Divisional Secretariat and third place by the Muttur Divisional Secretariat.
The first “Mehewara Pasasum” programme was held in Colombo, the second in Batticaloa, and this was the third programme.
Speaker Dr Jagath Wickramaratne, Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Senior Additional Secretary to the President and Secretary to the President’s Fund Roshan Gamage, and a number of government officials and others were present at the occasion.
(PMD)
News
Students of Rahmaniya Maha Vidyalaya Eravur visit Presidential Secretariat and President’s House
A group of students from Rahmaniya Maha Vidyalaya, Eravur, Batticaloa visited the Presidential Secretariat and President’s House on Monday (14) afternoon .
The students were given this opportunity as part of the “Vision” programme series, jointly implemented by the Presidential Secretariat, the Ministry of Education and the Communication Division of the Parliament of Sri Lanka for schoolchildren.
Prime Minister Dr Harini Amarasuriya stated that nurturing a future generation capable of providing leadership to society and committed to bringing about positive change in the world was an urgent need of the present day. She further stated that the Government’s objective in introducing the new education reforms was to prepare children to acquire knowledge from around the world while nurturing a confident and empowered generation capable of making a meaningful contribution to the country.
Following a visit to the former Parliament building at the Presidential Secretariat, the students were briefed on the history of Parliament.
Senior Additional Secretary to the President Roshan Gamage briefed the students on the role of the President’s Fund and the benefits available to schoolchildren through the Fund.
As part of the programme, valuable plants were also presented to the school as a symbolic gesture highlighting the importance of environmental conservation.
The Director and Assistant Director of the Tri-Forces Security Coordination Unit, the Principal and teachers of Rahmaniya Maha Vidyalaya Eravur and several others were present on the occasion.
(PMD)
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