News
Central Bank implements schemes to assist COVID-hit borrowers
The Central Bank has implemented several schemes to assist COVID-19 affected borrowers through Financial Institutions (FIs) supervised by it.
The schemes included extended repayment periods, concessionary rates of interest, working capital loans, debt moratoriums and restructuring/rescheduling of credit facilities for affected borrowers.
These concessions greatly assisted the small and medium enterprises of many affected sectors: tourism, apparel, plantation, information technology, logistic service providers, three-wheeler owners, operators of school vans, lorries, small goods transport vehicles and buses, and private sector employees.
In line with the concessionary schemes implemented by the CB, FIs have approved over 2.9 million requests for concessions amounting to a total of Rs. 4,083.8 billion prioritising the micro, small and medium enterprises (Table1).
These concessions, which were extended until 31 December 2021 by licensed banks and until 31 March 2022 by nonbank financial institutions, have helped to support the above groups who faced financial difficulties due to loss of jobs, reduction of incomes, contraction of business operations, closure of businesses, etc.
Considering that the tourism sector has been affected since 2019, special concessionary schemes for affected borrowers in the tourism sector continued to be granted from time to time and extended until 30.06.2022 by licensed banks and until 31 March 2022 by non-bank financial institutions. Accordingly, FIs have so far approved 24,831 requests for such concessions.
Specific concessions, such as moratoriums for lease facilities, granted to COVID-19 affected businesses and individuals in passenger transportation sector, were initially up to 30 September 2021, and extended further until 31 December 2021 by licensed banks and 31 March 2022 by non-bank financial institutions. FIs have approved 117,085 requests for such concessions.
In addition to debt moratoria, affected borrowers of the NBFI sector have been provided with the option to either restructure existing credit facilities for a longer term (subject to furnishing an agreeable revival plan) or to settle existing credit facilities early, where such requests are to be facilitated by waiving future interest, fees and applicable charges. These options have been made available for borrowers of nonbank FIs up to 31 March 2022.
CBSL has also requested FIs to grant further concessions, including the waiver of accrued penal interest, restructuring of existing credit facilities, provision of interest rebates, waiver of early settlement fees and other charges, suspension of legal action on loan recoveries, extension of the validity period of cheques valued below Rs. 500,000, discontinuation of certain charges usually made by FIs (for cheque returns, stop payment, etc.) and suspension of late payment fees applicable on credit cards during the concessionary period. FIs have also been requested to refrain from declining loan applications from eligible borrowers, solely based on unfavourable Credit Information Bureau (CRIB) records.
CBSL has further facilitated the revival of COVID-19 affected businesses through the introduction of the Saubagya COVID-19 Renaissance Loan Scheme Facility (SCRF) in 3 phases to provide working capital loans at an interest rate of 4% per annum, with a repayment period of 24-months, including a grace period of 6 months. Through this scheme, CBSL processed 62,574 applications leading to the release of Rs. 179,280 million under the SCRF, of which, Licensed Banks have disbursed Rs. 165,513 million among 53,152 affected businesses island-wide. Considering the subsequent waves of COVID-19 pandemic, grace periods and loan repayment periods applicable to SCRF loans have also been extended several times.
Accordingly, a debt moratorium has been granted up to 31 December 2021 while the repayment period has been extended by 12 months to 36 months. In addition, beneficiaries of the other loan schemes implemented by CBSL, such as Saubagya and Swashakthi Loan Schemes, have been provided with further relief at this crucial juncture, by the reduction of the interest rates and the introduction of the debt moratorium.
As announced recently by the CBSL in its six-month Road Map for ensuring macro-economic and financial system stability, a liquidity support grant of Rs. 15 billion is to be provided to FIs supervised by CBSL to compensate a part of the cost of the interest charged by them from affected borrowers during the moratorium, with a view to providing further relief to borrowers.
In the meantime, the CBSL has established the Financial Consumer Relations Department (FCRD) in August 2020 to handle complaints by financial consumers and borrowers who are able to submit complaints to FCRD using the forms available in the CBSL website.
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UN Humanitarian Priorities Plan (HPP) for Cyclone Ditwah successfully concluded
The conclusion of the Humanitarian Priorities Plan (HPP) implemented by the United Nations for those affected by Cyclone Ditwah was marked at a ceremony held in Colombo this morning (11), under the patronage of Commissioner General of Essential Services and Chief of Staff to the President, Prabath Chandrakeerthi, and United Nations Resident Coordinator in Sri Lanka, Marc-André Franche.
Speaking at the event, UN Resident Coordinator Marc-André Franche noted that the humanitarian relief programme launched for those affected by Cyclone Ditwah had been successfully implemented owing to the strong political leadership and the swift response demonstrated in managing the disaster situation.
Commissioner General of Essential Services and Chief of Staff to the President Prabath Chandrakeerthi emphasized that Sri Lanka had demonstrated how strong national leadership and effective partnerships could ensure the delivery of relief to affected communities in a fair and efficient manner during times of crisis. He further stated that the timely and accurate data and assessments provided by the United Nations had played a crucial role in facilitating rapid relief efforts. He also noted that the Government is continuing its efforts to strengthen multi-hazard early warning systems to enhance resilience against future natural disasters of a similar nature and to further expand institutional coordination at national, provincial and local levels.
Expressing appreciation and gratitude for the generous and prompt assistance extended by various countries and partners, the Commissioner General also commended the contribution of all state institutions that helped ensure the uninterrupted provision of essential services and facilitated the swift delivery of relief assistance.
Under the United Nations’ Humanitarian Priorities Plan for Cyclone Ditwah, a fundraising initiative was launched to mobilise US$35.4 million for those affected by the disaster. Of this amount, 75 per cent has already been disbursed as assistance to affected communities across the country. Through the programme, each affected family received an allowance of Rs. 27,000 through Divisional Secretariats, while a range of additional relief measures, including the construction of temporary housing, were also implemented.
The Humanitarian Priorities Plan covered 25 districts and delivered assistance through nine key sectors. Official reports indicate that 87 per cent of the targeted population of more than 650,000 people, equivalent to approximately 575,000 individuals, directly benefited from the programme. This achievement clearly reflects the confidence and support extended by foreign governments and organisations towards the Cyclone Ditwah response programme being implemented by the present Government.
Among those who attended the event were Additional Secretary (Disaster Management) to the Ministry of Defence K. G. Dharmatilake, ambassadors and high commissioners from several countries, representatives of the United Nations Development Programme (UNDP), representatives of the World Health Organization (WHO), representatives of international humanitarian organisations, and a number of local and international dignitaries.
(PMD)
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President chairs discussion on potential El Niño impacts and institutional preparedness
A discussion to review the potential impacts of the anticipated El Niño phenomenon and the preparedness plans of relevant institutions to address its effects was held this morning (11) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.
The meeting was attended by representatives of the Department of Meteorology, the Department of Irrigation, the Central Environmental Authority, Mahaweli Authority of Sri Lanka, the Disaster Management Centre, Vidulijanana Lanka (Pvt) Ltd and the National System Operator (Pvt) Ltd, among other relevant institutions.
Extensive discussions were held on the possible impact of the anticipated El Niño conditions on the country’s food security, drinking water supply and energy sector, as well as the immediate measures required to effectively manage these sectors.
Particular attention was given to current reservoir water levels and the measures required managing potential pressure on agriculture, drinking water supply and energy generation. Officials also briefed the President on the preparedness plans already in place to mitigate any adverse effects.
Officials noted that the expected El Niño conditions are likely to resemble those experienced during 2016–2017. They further stated that water management plans have been formulated accordingly and that steps have already been taken to commence the 2026 Yala season approximately one and a half months earlier than usual.
Special attention was also focused on ensuring an uninterrupted electricity supply over the upcoming months, maintaining agricultural activities and safeguarding food security. The President instructed relevant officials to prepare and submit detailed plans to ensure adequate electricity generation, the provision of water required for the forthcoming cultivation season and the protection of drinking water resources.
President Dissanayake observed that, just as Sri Lanka had successfully managed challenges arising from Cyclone Ditwah and the conflict situation in the Middle East, the country possesses the capacity to effectively address this global challenge as well. The President expressed confidence that with proper planning and timely implementation, Sri Lanka would be well positioned to respond to any eventuality.
Among those present were Secretary to the President Dr. Nandika Sanath Kumanayake, Senior Additional Secretary to the President Kapila Janaka Bandara, Director General of the Department of Meteorology A. L. K. Wijemannage, Director General of the Department of Irrigation Kithsiri Weligopolage, Director General of the Mahaweli Authority of Sri Lanka H. M. K. K. Herath, Chairman of the Central Environmental Authority Professor Tilak Hewawasam, Acting Director General of the Disaster Management Centre Brigadier D. D. G. A. Jayawardena and several senior officials representing the relevant institutions.
(PMD)
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New Sasakawa Memorial Sri Lanka–Japan Cultural Centre reflects enduring friendship between Sri Lanka and Japan – PM
Prime Minister Dr. Harini Amarasuriya participated at the ceremonial opening of the new Sasakawa Memorial Sri Lanka–Japan Cultural Centre today [11th of June 2026].
The cultural centre, commissioned by the Sasakawa Memorial Sri Lanka–Japan Cultural Centre Trust and situated at No. 85, Ward Place, Colombo 07, is a landmark development designed to promote cultural exchange, education, professional training and bilateral cooperation between Sri Lanka and Japan.
The New Sasakawa Centre was ceremonially opened by the Ambassador of Japan to Sri Lanka Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA, Chairman of The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust. The Prime Minister unveiled the inaugural plaque.
Following the occasion Memorandum of Understanding was signed between the Ministry of Defence and Sasakawa Peace Foundation in the presence of Prime Minister Dr. Harini Amarasuriya and Yohei SASAKAWA, Honorary Chairman.
Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated, that the friendship between Sri Lanka and Japan is enriched by a long history of cultural and spiritual connections and that the societies are connected through a deep appreciation of nature, culture, learning, and community.
Highlighting the longstanding contribution of the Sasakawa Centre, the Prime Minister stated that it has played an invaluable role in promoting Japanese language education and strengthening mutual understanding between the people of Sri Lanka and Japan. She expressed confidence that the new Centre would emerge as a dynamic platform for cultural exchange, educational cooperation, and meaningful people-to-people engagement.
The Prime Minister stated that, at a time of increasing global uncertainty, partnerships based on mutual respect, shared values, and a commitment to peace are more important than ever. She reaffirmed that Sri Lanka and Japan remain committed to dialogue, international cooperation, and s rules-based international order that promotes peace, prosperity, and human dignity.
The occasion was attended by the Ambassador of Japan to Sri Lanka Akio ISOMATA, Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Minister of Buddhasasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, Yohei SASAKAWA, Chairman, The Nippon Foundation, Japan, Premalal Fernando, Chairman, Sasakawa Centre Trust and Diplomatic core, distinguished guests.


[Prime Minister’s Media Division]
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