Central Bank extends deadline of application for 4% Working Capital Loan Scheme

The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to extend the deadline of 4% Working Capital Loan Scheme, at its meeting held on 19th August 2020.

Accordingly, COVID-19 affected businesses and individuals can submit their loan applications under the Saubagya COVID-19 renaissance facility to respective licensed banks until 30th September 2020, the statement said.

Meanwhile, the Central Bank of Sri Lanka has surpassed the milestone of Rs. 100 billion loans on 18th August 2020, approving Rs.100,017 million worth of loans submitted by 36,489 applicants under the above facility. 

Out of approved loans, licensed banks have already disbursed more than Rs. 68.5 billion among 25,365 affected businesses and individuals island-wide as of 18th August 2020, the central bank said.

Out of Rs. 100 billion approved under the Scheme, 50 per cent has been provided to businesses in the services sector, led by trade services, while distributing 34 per cent and 16 per cent among businesses in the industry sector and the agriculture sector, respectively.

The Central Bank of Sri Lanka, in consultation with the Government of Sri Lanka, introduced the 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, to businesses, including self-employment and individuals, adversely affected by the COVID-19 outbreak.