New directives extend interest concessions, lending support, and rescheduling deadlines for eligible small and medium enterprises.
Government and CBSL Renew Commitment to SME Recovery
In a renewed effort to revive Sri Lanka’s vital small and medium-sized enterprise (SME) sector, the Government and the Central Bank of Sri Lanka (CBSL) have announced a fresh package of financial relief measures targeting SMEs linked with the formal banking system. The initiative was revealed at a high-level meeting on June 11, chaired by Finance Deputy Minister Dr. Harshana Suriyapperuma, reinforcing the government’s commitment to support economic recovery through strengthened SME growth.
CBSL Issues Directive to Banks to Extend Relief
On June 9, the CBSL issued a formal directive instructing licensed commercial banks (LCBs) and licensed specialised banks (LSBs) to provide further financial relief to SME borrowers. This includes interest concessions, fresh lending opportunities, and an extension of deadlines to finalize loan rescheduling agreements. The directive specifically targets SMEs that began business revival discussions with their banks by March 31, 2025.
Extended Deadlines and Enhanced Support Measures
Under the new directive, the deadline for completing rescheduling agreements has been extended from June 15 to June 30, 2025. The relief measures align with CBSL’s previous Circular No. 04 of 2024 and Addendum Circular No. 01 of 2025, which set the framework for assisting affected SMEs. The extended deadline and enhanced concessions aim to provide SMEs with greater flexibility to stabilize their operations during the ongoing economic recovery.
Key Stakeholders Rally Behind SME Growth
The June 11 meeting convened important government and financial leaders, including Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Ministry Secretary Thilaka Jayasundara, and CBSL Bank Supervision Director Rukshana Jayatillake. Together with heads of various institutions, they underscored the importance of coordinated efforts to sustain SME development through effective financial relief and policy support.
CBSL Encourages Eligible SMEs to Engage Banks
The CBSL urges SME borrowers who have initiated revival talks with banks before the March 31 cutoff to contact their financial institutions promptly to benefit from the extended concessions. The central bank’s proactive measures are designed to ease liquidity constraints and foster a more resilient SME sector capable of contributing significantly to Sri Lanka’s broader economic resurgence.