The Central Bank of Sri Lanka (CBSL) has ordered all licensed banks to extend temporary debt relief and new credit support to individuals and businesses hit by the recent cyclonic and flood disasters.

Under Circular No. 04 of 2025, affected borrowers can request assistance until 15 January 2026. Banks may suspend repayments for up to six months and must cap new loan rates at 9% for facilities up to two years. All late fees, cheque return charges and penal interest must be suspended until 31 January 2026.

CBSL also directed banks not to reject new loans solely due to CRIB records and to clearly communicate restructuring terms. Monthly reporting to CBSL begins end-December.