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CBSL instructs Finance companies to offer facilities to SME

The Department of Supervision of Non Bank Financial Institutions of Central Bank of Sri Lanka has issued a circular to Licensed Finance companies and specialized Leasing Companies to extend special credit support scheme to eligible Small and Medium Enterprise customers.
In early January with a view to accelerating economic growth in the country and based on discussions held with the Prime Minister and the Minister of Finance, officials of the office of the President, all licensed commercial banks and licensed specialised banks agreed to provide a special credit support scheme to eligible Small and Medium Enterprise borrowers of respective licensed banks during January 1, 2020 to December 31, 2020 to complement the fiscal incentives already announced by the Government.

Based on the discussions the Central Bank of Sri Lanka (CBSL) had with the licensed banks, it is observed that the proposed scheme may not cause an undue level of stress or threaten the stability of the banking system. Accordingly, this Circular sets out the guidelines for giving effect to the Scheme in a consistent manner across licensed banks.

It was also aggressed to extend this facility to Licensed Finance companies and specialized Leasing Companies as well. On March 10, 2020, the Central Bank has now issued instructions for both Licensed Finance companies (LFC) and specialized Leasing Companies (SLC) to offer special credit support for individual and entities as well. The customers will have to make a written request before March 31.

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