Market interest rates ‘should be reduced’

The Central Bank of Sri Lanka (CBSL) states that further reductions in market interest rates are possible.

CBSL officials also mentioned that the country’s financial institutions are expected to provide the relevant reductions to customers soon.

Meanwhile, the Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, stated that although the financial institutions have reduced those rates, they have not been reduced to the same extent as the Central Bank’s reduction of interest rates.

At a press conference today (28), he further stated that the interest rates for newly issued loans should be reduced.

“The changes that need to be made for the loans that have been issued by now will happen soon. We are keeping an eye on that. At the same time, we have seen instances where new loan areas were issued for higher interest rates. But that shouldn’t happen. We expect that change to happen soon,” he said.