Sri Lankan commercial banks on Wednesday agreed to reduce overall penal rates of interest applicable to unauthorized excesses to a figure not exceeding 29% per annum from as high as 39%.
In a statement the Sri Lanka Banks’ Association said its member banks will also consider a further reduction for priority sector facilities within their respective bank portfolios on a case by case basis. The above decisions are taken supported by the following perspectives and will be subject to review, the statement from the association’s Secretary –General said.
The level of domestic inflation has progressively come down during the past three months, whereby the point to point inflation is now at a single digit level. A gradual reduction in the treasury bill/bond rates which has occurred during the past few months, due to adequate funds moving into government securities, it said.
Banks will implement these changes during the course of this month but not later than May 1. |
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