Sri Lankan economy fell to dismal levels over the past few years, and got worse following the COVID-19 pandemic. Following instructions from the President the Central Bank has taken immediate remedial actions. In support of the government’s efforts to revive the economy, the Monetary Board of the Central Bank decided to introduce new credit schemes.
Accordingly, in addition to the already disbursed Rs. 27.5 billion under the refinance scheme introduced on 27 March 2020, the Central Bank will provide funding to Licensed Commercial Banks (LCBs) at the concessionary rate of 1.00 per cent against the pledge of a broad spectrum of collateral, on the condition that LCBs in turn will on-lend to domestic businesses at 4.00 per cent, while ensuring the greatest possible distribution of this facility.
This Central Bank scheme along with the existing refinance Scheme will provide Rs. 150 billion in total to the businesses affected by the COVID-19 pandemic. In addition, operating instructions on these new credit schemes will be issued in immediate due course.