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Rate Track

Apr 09, 2013 (LBO) - Sri Lanka's interest rates will start to ease from May and June 2013 ongoing reforms as state energy enterprises take effect, Treasury Secretary P B Jayasundera said.
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The CEB is expected to raise prices this month and the CPC is expected to stop giving it subsidized furnace oil.

Though the Central Bank has cut rates, lending rates have been high partly due to state borrowings from the banking system.

"We are taking steps to improvement management of state enterprise," Jayasundera said at a forum in Sri Lanka's Central Banka at the release of its annual report, speaking in Sinhalese language.

"Measures are being taken regarding Ceylon Petroleum Corporation and Ceylon Electricity Board.

"By May and June interest rates will start to come down."

Sri Lanka ran into a balance of payment crisis from mid 2011 largely due to credit taken by state energy utilities.