Central Bank approved Rs. 53 billion for 20,240 COVID-19 affected Businesses

The Central Bank, in consultation with the Government of Sri Lanka, has introduced the Saubagya Covid-19 Renaissance Loan Scheme to provide working capital loans at 4% interest rates to businesses adversely affected by the COVID-19 outbreak, through Licensed Banks, thereby supporting the revival of economic activity in the country. This Loan Scheme is available for COVID-19 affected businesses with an annual turnover below Rs. 1 billion, including self-employment and individuals. The Rs. 1 billion limit of annual turnover will not be applicable to businesses engaged in tourism, exports and related logistical supplies.


The Loan Scheme, which has been implemented in three phases, is expected to disburse a  total of Rs 150 billion in working capital loans at the rate of 4 % per annum. The total of working capital loan facilities provided by the Central Bank to be distributed among 20,240 businesses under the Loan Scheme as of 02 July 2020 exceeds Rs. 53 billion. These loans carry a concessional interest rate of 4% per annum with a repayment period of 24-months including a grace period of 6-months.

Under Phase-I of the Loan Scheme implemented with effect from 01 April 2020, the Central Bank granted approval for 13,926 loans amounting to Rs. 28 billion. Out of approved loans, Licensed Banks have already disbursed more than Rs. 21 billion among 10,270 affected businesses and individuals island wide as of 02 July 2020. Under Phase-II of the Loan Scheme implemented with effect from 19 June 2020, the Central Bank approved 6,314 loans amounting to Rs. 25 billion distributed among 6,314 businesses and individuals (See Table 1 for details).

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