According to CBSL, Circular No. 04 of 2025, dated 05 December 2025, has been issued with the aim of granting concessions to borrowers whose income or business operations were directly impacted by the disaster situation. The decision was made after considering the proposals submitted by the Sri Lanka Banks’ Association and ensuring that such relief would not create undue pressure on the stability of the financial system.
CBSL informs that affected borrowers must submit their requests—either in writing or via electronic means—to their respective licensed banks on or before 15 January 2026 to qualify for the relief measures.
Licensed banks have been instructed to offer the following concessions:
1. Temporary loan moratoriums
2. New credit facilities for affected borrowers
3. Suspension of charging late fees and penalty interest until 31 January 2026
4. Submission of a restructuring plan for existing loan facilities
In cases where a bank rejects a borrower’s request for relief, the bank must provide written justification to the borrower. Applicants also have the right to appeal such decisions to the Director of the Financial Consumer Relations Department of the Central Bank of Sri Lanka.
Furthermore, CBSL has emphasized that new loan applications from affected individuals or businesses should not be rejected solely on the basis of unfavorable records in Credit Information Bureau (CRIB) reports.
This move aims to ensure equitable and effective financial support for those impacted by the recent disaster while maintaining overall financial sector stability.
