Guidelines for Licensed Banks

Guidelines for Business Revival Units in Licensed Banks

by Staff Writer 03-04-2024 | 12:30 PM

COLOMBO (News 1st); The Central Bank of Sri Lanka issued broad guidelines to licensed banks on 28 March 2024, to further strengthen the functions of already established Post COVID-19 Revival Units and reformulate such units as Business Revival Units (BRUs).

The enhanced scope of proposed BRUs will facilitate 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 challenging macroeconomic conditions prevailed during the 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.

Thus, 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.

The Central Bank of Sri Lanka requests both licensed banks and concerning borrowers to effectively collaborate to ensure viable businesses are revived in a sustainable manner to benefit the borrowers, resulting in enhanced economic activities and contribute to the development of the national economy.