Sri Lanka, Oct. 5 -- The Central Bank of Sri Lanka (CBSL) on September 30 by way of directive instructed the Non-Banking Financial Institutions (NBFI) to provide a tourism-related debt moratorium for a 'further period of six months commencing from October 1, 2020, to March 31 2021.' The CBSL also reduced liquidity requirements on the sector and issued directives to encourage foreign currency inflows into the country.

The CBSL notes that the proposed scheme (an extension on debt moratorium) does not cause an undue level of stress or threaten the stability of the NBFI sector as there is limited exposure.

The eligible borrowers for the scheme shall be those registered with the relevant authorities. Regionally/provincially registered entiti...