Skip to content

MSME Loan Extensions Approved: Banking Sector’s Cyclone Response

MSME Loan Extensions Approved: Banking Sector’s Cyclone Response

The Sri Lanka Banks' Association (SLBA) has announced a consensus among member banks to grant loan extensions to Micro, Small, and Medium Enterprises (MSMEs) impacted by the recent floods. This moratorium applies to both capital and interest repayments for a period of six months. The move is see...

A
Admin
Dec 23, 2025
2 views
Share:

The Sri Lanka Banks' Association (SLBA) has announced a consensus among member banks to grant loan extensions to Micro, Small, and Medium Enterprises (MSMEs) impacted by the recent floods. This moratorium applies to both capital and interest repayments for a period of six months.

The move is seen as a proactive measure to prevent a spike in Non-Performing Loans (NPLs). "This is not a write-off, but a necessary pause to allow businesses to rebuild their inventory and premises," stated a senior banker. The extension process has been simplified, requiring minimal documentation to ensure rapid relief.

References:

Related Articles