Sri Lanka Covid-19 debt moratorium extended till April 2021
ECONOMYNEXT – Sri Lanka has extended a debt moratorium given to customers of banks and finance companies from October 01, 2020 to March 31, 2021, the central bank said.
Customers of banks have to request the extension before November 30 and finance companies by November 25. The original debt moratorium expired on September 31.
Capital and interest due for the period has to be converted to a term loan at Treasury bill yield +1, with a minimum repayment period of 24 months.
Finance companies can charge 364 day T-bill plus 5.5 percent and 11.5 percent.
For forex loans the rate shall be the contracted rate or below the current market rate.
The due date for pawning loans will be extended to April 01, 2021.
Download Circular to Banks
Download Circular to finance companies
Banks have to waive penal interest accrued till October 01. Penal rates also cannot be charged for the moratorium period. (Colombo/Nov11/2020)