The central bank announces a Credit Support to accelerate the economic growth

Share Button

Licensed commercial banks and licensed specialised banks have agreed to provide a special Credit Support Scheme to eligible Small and Medium Enterprise borrowers of respective licensed banks, with a view to complementing the fiscal incentives already announced by the government. Accordingly, the Central Bank of Sri Lanka issued a Circular providing guidelines for implementing the Scheme in a consistent manner across all licensed banks. The Scheme is in operation from till December 31 of this year
Eligible Borrowers include Small and Medium Enterprises (SMEs) with an annual turnover between 16 million rupees to 750 million rupees for the year ended 31 of December 2019 that have obtained credit facilities from licensed banks. In the case of SMEs, which are in the Non-performing Loans category as at 31 of December 2019, the lower limit of annual turnover, i.e.16 million rupees, will not apply.
SMEs operating in manufacturing, services, agriculture including processing, and construction sectors and have obtained business related term loans, leasing facilities, overdrafts and trade finance facilities denominated in Rupees are eligible under this Scheme, subject to certain requirements.
Eligible borrowers are required to make a written request to respective licensed banks to avail of this Scheme on or before 10.02.2020.
Participants of this Scheme shall continue to service the interest due on credit facilities considered under this Scheme in a timely manner. Those who fail to service interest will not be entitled to enjoy the benefits of this Scheme

Share Button

Leave a Reply

Your email address will not be published. Required fields are marked *