Rate of interest on loans decreases.

Thursday, 27 June 2013 - 7:53




Central Bank Governor Nivard Cabraal says that a two percentage point cut in Sri Lanka's bank reserve ratio to 6 percent will lower costs expand funds available to be given as loans, allowing banks to bring down lending rates.


Governor Cabraal said that the credit price is not coming to the right level yet, and that the interest is still too high to spur sufficient amount of growth.


Banks will now have to place only 6 percent of the deposits raised from the public in the central bank as non-interest bearing 'statutory reserves' instead of the earlier 8 percent releasing more funds for lending.