New Facility for the Business Adversely Affected by the Covid - 19 Outbreak ('Saubagya Covid - 19 Renaissance Facility')

Having identified the national importance of reviving the businesses adversely affected by the COVID-19 outbreak in order to contain the hampering of living conditions of the Sri Lankans and the economic growth of the country as a whole, CBSL under the instructions of the Government of Sri Lanka has introduced a new refinance facility for the businesses adversely affected by the covid-19 outbreak, under the Saubagya (Prosperity) Loan Scheme ('Saubagya Covid-19 Renaissance Facility'). Given the high demand for new facility, the alloocated amount of Rs. 50 Billion has been increased to Rs. 150 Billion and deadline to submit application has been extended up to 31.08.2020.

 

Main Features of 'Saubagya Covid - 19 Renaissance Facility'

 

Implementation Agency

Regional Development Department of the Central Bank of Sri Lanka

Areas of Operation

All island

Participating Financial Institutions (PFIs)

Licensed Banks

Maximum Loan Limit

Two months working capital requirement

Eligible Borrowers

*  As stated in the Section 2 of the Monetary Board Circular No. 05 of 2020, any business affected by the COVID-19 pandemic provided that the turnover of the business is below Rs. 1 Billion (However, businesses above Rs. 1 Billion turnover will granting if they are in the sectors of tourism, exports and related logistical suppliers).

*  Loans will be granted to facilitate working capital requirements of the eligible businesses.

Interest Rate payable to the PFI by the Sub-Borrower

4% per annum

Grace Period

Maximum duration of six (06) months depending on the nature of the activity

Repayment Period

Maximum duration of twenty-four (24) months including the grace period

Collateral

The viability of the economic activity should be given priority.  However, PFIs may obtain suitable collateral to mitigate the credit risk relating to credit facilities.

How to Obtain Further Information

Director, Department of Regional Development,
Central Bank of Sri Lanka,
No.30,  Janadipathi Mawatha, Colombo 01.
Tel: 011 2477447, 011 2398721, 011 2477434,
011 2477348, 011 2477113, 011 2477015
Fax: 011 2477734