Disaster-hit borrowers get credit protection under CRIB relief plan

Pushpike Jayasundera

Sri Lanka’s credit regulator has moved to shield the borrowers hit by Cyclone Ditwah from longer-term financial fallout, introducing temporary relief measures that prevent the disaster-related repayment delays from damaging the credit profiles.

The Credit Information Bureau of Sri Lanka (CRIB), under the guidance of the Central Bank, said the measures would apply for up to six months and are designed to support the individuals and businesses facing cash flow disruptions from the floods and cyclonic winds. 

The payments delayed due to the disaster will not be classified as overdue, while the financial institutions have been instructed to reflect relief support in the credit records.

The CRIB also said the fresh loans extended to help the businesses restart the operations would be flagged as recovery-linked facilities, allowing the lenders to distinguish them from standard borrowing. 

Reporting of the eligible borrowers under the scheme began from March 1, 2026.

The move comes as the policymakers seek to ringfence the financial system from climate-related shocks, ensuring temporary distress does not translate into longer-term exclusion from credit markets—particularly for small businesses and vulnerable households.

However, the CRIB cautioned that the borrowers, who continue to default beyond the relief framework, would be reported under the normal classification rules, signalling that the measures are strictly time-bound.

“These measures reflect our commitment to supporting the national economic recovery while upholding a fair and transparent credit information system,” CRIB Director and General Manager Pushpike Jayasundera said, adding that the framework aims to preserve access to credit for the affected borrowers.

The CRIB, established in 1990, serves as the country’s central credit registry, underpinning the lending decisions and financial inclusion by providing credit information to the banks and financial institutions.