tsunami  to hit sri lanka banks  sri lanka s banks face hard times following december s tsunami disaster  officials have warned.  the sri lanka banks association said the waves which killed more than 30 000 people also washed away huge amounts of property which was securing loans. according to its estimate  as much as 13.6% of the loans made by private banks to clients in the disaster zone has been written off or damaged. state-owned lenders may be even worse hit  it said.  the association estimates that the private banking sector has 25bn rupees ($250m; £135m) of loans outstanding in the disaster zone. on one hand  banks are dealing with the death of their customers  along with damaged or destroyed collateral. on the other  most are extending cheap loans for rebuilding and recovery  as well as giving their clients more time to repay existing borrowing. the combination means a revenue shortfall during 2005  slba chairman - and commercial bank managing director - al gooneratne told a news conference.  most banks have given moratoriums and will not be collecting interest  at least in this quarter   he said. in the public sector  more than one in ten of the state-owned people s bank s customers in the south of sri lanka were affected  a bank spokesman told reuters. he estimated the bank s loss at 3bn rupees.