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Sri+Lankan+firms+should+borrow+longer+term+as+rates%2C+inflation+fall%3A+CB+Governor
Thursday, 22 May 2014 - 13:32
Sri Lankan firms should borrow longer term as rates, inflation fall: CB Governor
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Central Bank Governor Nivard Cabraal said Sri Lankan firms and banks should look at borrowing and lending longer term as interest rates and inflation fall.

Sri Lanka's commercial bank average weighted lending rate is now 14.44 percent down from 16.36 percent a year earlier, and Cabraal says there is still space for lending rates to fall.

The Central Bank has cut its repo rate which sets a floor on the overnight money markets to 6.50 percent over the past year after raising rates to ward off a balance of payments pressure that came from credit financed energy subsidies.

 
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