The Central Bank of Sri Lanka (CBSL) has issued broad guidelines to licensed banks to further strengthen the functions of already established Post COVID-19 Revival Units and reformulate such units as Business Revival Units (BRUs).
According to the CBSL, the enhanced scope of proposed BRUs will facilitate the sustainable revival of viable businesses affected by the extraordinary macroeconomic conditions and ensure the proper handling of the increased impaired assets of licensed banks.
The Central Bank sought relevant stakeholder views including the banking industry and the Chamber of Commerce, when formulating these guidelines.
The challenging macroeconomic conditions that prevailed during recent years have led to disrupting the income-generating activities of businesses, adversely impacting the ability of borrowers to duly repay their loans and thereby impairing the recovery process of licensed banks.
The CBSL said, thus, that the setting up of BRUs is considered imperative to assist both performing and non-performing borrowers of licensed banks whose businesses are fundamentally viable to revive.
CBSL’s full statement on the guidelines : https://shorturl.at/hryGK (NewsWire)