CBSL extends grace period of 4% working capital loan scheme

The Central Bank of Sri Lanka (CBSL), in consultation with the Government, had 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 move came after having identified the national importance of revamping the businesses affected by COVID-19 pandemic.

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, the Central Bank says.

Hence, having considered the importance of facilitating and encouraging borrowers to repay the loans without any failure, the Central Bank has decided to extend the grace period applicable for the loans registered under Saubagya COVID-19 Renaissance Facility by additional three months, upon the written request made by the borrowers.

Accordingly, beneficiaries of these working capital schemes who wish to receive a grace period of 9 months are required to send a written request to the relevant bank.