Sri Lanka's central bank rubber-stamps $139.3b in SME loans

It has approved 13,761 loan applications.

The Central Bank and Government of Sri Lanka has approved $139.3b in SME loans under the first phase of the Saubagya COVID-19 Renaissance Facility, aimed to help small and medium enterprises (SMEs) affected by the pandemic, the central bank announced on their website.

A total of 13,761 loan applications were approved under the scheme. Of these, licensed banks have already disbursed more than $78.9b to 7,274 affected businesses island-wide as of 24 June.

The regulator first announced the novel refinance facility on 24 March as part of the Saubagya Prosperity Loan Scheme. The loans carry a concessional interest rate of 4% per annum (p.a.) with a grace period of six months and a repayment period of 24 months.

The central bank will also provide a further $639.9b (Rs.120b) at a concessionary rate of 1% p.a. to commercial banks for on-lending to affected businesses at a concessionary rate of 4% p.a. under Phase II of the scheme.