Central Bank extends grace period for Covid-19 re-finance loans by 3-months

The Central Bank has extended the grace period of Covid-19 relief loans given at 4 percent to 9 months from the date of granting to the current 6 months.

The loans with central bank re-financing had a 24-month repayment period with a grace period of 6 months.

“However, it is observed that most of the borrowers have experienced difficulties in revamping their businesses as expected, due to the second wave of COVID-19 pandemic,” the Central Bank said.

“Therefore, having considered the importance of facilitating and encouraging borrowers to repay the loans without any failure, the CBSL decided to extend the grace period applicable for the loans registered under Saubagya COVID-19 Renaissance Facility by additional three (03) months, upon the written request made by the borrowers.”

Borrowers who need the extended grace period have to send a written request.

The full statement is as follows:

Central Bank extends the Grace Period of 4% Working Capital Loan Scheme from 6 Months to 9 Months

Having identified the national importance of revamping the businesses affected by COVID-19 pandemic, the Central Bank of Sri Lanka (CBSL), in consultation with the Government of Sri Lanka, implemented Saubagya COVID-19 Renaissance Loan Scheme Facility in 3 phases to provide working capital loans at the interest rate of 4% per annum, with a repayment period of 24-months, including a grace period of 6-months.

However, it is observed that most of the borrowers have experienced difficulties in revamping their businesses as expected, due to the second wave of COVID-19 pandemic.

Therefore, having considered the importance of facilitating and encouraging borrowers to repay the loans without any failure, the CBSL decided to extend the grace period applicable for the loans registered under Saubagya COVID-19 Renaissance Facility by additional three (03) months, upon the written request made by the borrowers.

Accordingly, beneficiaries of these working capital schemes who wish to receive a grace period of 9 months are required to send a written request to the relevant bank.