Breathing Room for Borrowers: Sri Lanka’s Central Bank Unveils Cyclone Relief Package

The Central Bank of Sri Lanka (CBSL) has announced sweeping relief measures for individuals and businesses hit by the recent cyclonic and flood disasters, instructing all licensed banks to suspend repayments of capital and interest on existing credit facilities for affected borrowers for a period of three to six months. This move is part of a broader effort to cushion the economic impact of Cyclone Ditwah, which caused widespread devastation, loss of life, and disruption across the island nation.

 

Key Highlights:- The CBSL has directed banks to halt both principal and interest repayments for borrowers whose livelihoods or businesses have been directly affected by the cyclone and floods, offering temporary debt relief for up to six months on a case-by-case basis.

 

Broader Relief Efforts

The CBSL’s move comes amid mounting international aid, including a $200 million assistance request to the IMF and emergency health funds from the WHO. Local authorities and volunteers are distributing essential supplies, while the government continues to coordinate with global partners for further relief and reconstruction.

Sources: Reuters, Central Bank of Sri Lanka, Hindustan Times