Central Bank extends SME loan relief deadline

Urges banks to offer further concessions

The Central Bank yesterday extended the deadline for banks to finalise loan rescheduling agreements with small and medium enterprises (SMEs), urging lenders to offer additional relief to businesses still recovering from recent economic disruptions.

Licensed commercial and specialised banks have now been given until 30 June 2025, to enter into rescheduling agreements with eligible SME borrowers, two weeks beyond the previous cut-off of 15 June 2025, as part of a broader effort to support business revival.

The Central Bank of Sri Lanka (CBSL) also called on banks to extend further concessions, including interest relief and new lending, to SME borrowers who began discussions for business revival by 31 March 2025.

These relief measures are in line with Circular No. 04 of 2024 dated 19.12.2024 on Relief Measures to assist the affected SMEs and the Addendum Circular No. 01 of 2025 dated 01.01.2025.

“Those borrowers who approached the licensed banks for discussions on business revival as specified in the aforesaid Circular may contact the respective banks to obtain further details in this regard,” the CBSL said in a statement.