Lankapage Logo CP 21 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Concessionary scheme for leasing facilities obtained by businesses and individuals engaged in passenger transportation
Tue, Mar 16, 2021, 09:03 am SL Time, ColomboPage News Desk, Sri Lanka.

Mar 16, Colombo: Considering the difficulties and constraints faced by businesses and individuals engaged in passenger transportation services due to the ongoing COVID-19 pandemic, the Central Bank of Sri Lanka (CBSL) has requested licensed commercial banks, licensed specialized banks, licensed finance companies and specialized leasing companies (financial institutions), to provide concessions for lease facilities obtained by such businesses and individuals for six months or a shorter period, as applicable, commencing from 1 April 2021.

The eligible borrowers are businesses and individuals engaged in providing public passenger transportation, private passenger transportation such as school transport service, office transport service, taxis including three wheelers, etc. and those providing passenger transportation services to the tourism sector. Such borrowers are required to make a request on or before 19 April 2021 in writing or through electronic means for deferring the lease installments. Financial institutions are requested to accept any request submitted after 19 April 2021, if the reasons for delay in making such request is acceptable.

The concessions will be granted for performing lease facilities including lease facilities under moratorium as at 31 March 2021 obtained by eligible borrowers. Financial institutions may charge an interest rate not exceeding the latest auction rate for 364-days Treasury Bills, available as at 01 April 2021, plus a margin for the deferred period, only on the lease installments falling due during the deferred period. With respect to licensed banks, this margin is specified as 1 per cent per annum. With respect to licensed finance companies and specialized leasing companies, it is specified as 5.5 per cent per annum and interest rate charged shall not exceed 11.5 per cent per annum.

Financial institutions are required to refrain from charging any penal interest on the lease facilities eligible for the concession.

During the deferred period of the existing lease facility, financial institutions will commence recovery of installments falling due in relation to the moratoriums granted during 2019 and 2020. This is taking into consideration that the public transportation is gradually returning to normalcy with the re-opening of schools, offices, airport, etc., potential impact of the extended debt moratorium schemes on financial institutions and the ongoing vaccination program. The recovery of installments of the lease facilities and moratoriums has been structured in a way that the borrowers are not overly burdened with repayment of installments due to the debt moratoriums provided during the COVID-19 pandemic.

Financial institutions are requested to implement this concessionary scheme with a view to facilitating the eligible borrowers to carry on their income generating activities and gradually commence repayment of their lease facilities. Eligible borrowers are requested to contact the respective financial institutions to obtain more information in this regard.

Relevant circulars issued to financial institutions are published in the CBSL website, www.cbsl.gov.lk.

 

ColomboPage - Recent 10 Stories ::
Indonesian Naval Ship KRI Raden Eddy Martadinata (331) arrives in Sri Lanka’s Port of Colombo
-- [16 minutes ago]
Adjournment Debate on the Government Policy Statement to be held on the 9th and 10th
-- [38 minutes ago]
Court bans protests that interfere with National Independence Day event at Galle Face
-- [48 minutes ago]
Two members of Public Utility Commission resign
-- [1 hour and 39 minutes ago]
Supreme Court rejects HRC’s request to order uninterrupted power supply during GCE A/L exam
-- [2 hours ago]
U.S. reaffirms continued support to Sri Lanka, looks forward to working together for mutual goals
-- [2 hours ago]
PSC focuses on the need to digitalize public and private institutions in promoting investments
-- [2 hours ago]
Sri Lankan President urges all countries in trouble to join hands in finding solutions
-- [3 hours ago]
Prestigious Sri Lankabhimanya Award bestowed on Former Speaker Karu Jayasuriya
-- [3 hours ago]
US President extends warm wishes to Sri Lanka on its 75th Anniversary of Independence
-- [3 hours ago]

Copyright © 2000, 2020 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.