Central Bank extends cheap working loan for COVID-19 grace period to 9 mths from 6 mths

The Central Bank of Sri Lanka (CB) on Friday extended the grace period for payment to nine months from six months under its cheap loan scheme to overcome COVID-19.
The CB, having identified the national importance of revamping the businesses affected by COVID-19 pandemic, in consultation with the Government of Sri Lanka, implemented Saubagya COVID-19 Renaissance Loan Scheme Facility in 3 phases to provide working capital loans at the interest rate of 4% per annum, with a repayment period of 24-months, including a grace period of 6-months, the CB said in a media release.
“However, it is observed that most of the borrowers have experienced difficulties in revamping their businesses as expected, due to the second wave of COVID-19 pandemic. Therefore, having considered the importance of facilitating and encouraging borrowers to repay the loans without any failure, the CB decided to extend the grace period applicable for the loans registered under Saubagya COVID-19 Renaissance Facility by an additional three (03) months, upon the written request made by the borrowers. Accordingly, beneficiaries of these working capital schemes who wish to receive a grace period of nine months are required to send a written request to the relevant bank,” it said.