January, 30, 2020
The Central Bank of Sri Lanka today (30) stated that the deadline for Small and Medium Enterprise (SME) borrowers to inform their banks in order to receive the benefits from the debt relief package, has been extended until February 10.
Hence, SME borrowers who have obtained loans under Rs.300 million are to inform the bank branches regarding their borrow before February 10.
“There is a deadline until February 10. A customer could make a request from the bank and they are in the process of making requests,” Deputy Governor of the CBSL Dr. P. Nandalal Weerasinghe stated.
“So far we have not received a proper estimate about the possible requests but what we see is that the total advances for the banking sector would be 8 trillion. But SME exposure would be around 10-12% of that. According to our understanding in the past, all those exposures were materialized and only around 30% have requested. Therefore, we don't see a huge exposure coming from this sector,” Deputy Governor H A Karunaratne said.
"Therefore, we will be amending the deadline. We will be issuing a fresh circular and time will be extended until February 10,” he added.
Under the debt relief package introduced by the government, banks have been suspended from taking legal action or imposing fines against those who failed to pay off their debts.