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Central Bank urges financial institutions to reduce lending rates without delay

May 06, 2020 (LBO) – Sri Lanka's Central Bank urges financial institutions to reduce lending rates without further delay.

Failing which, the Central Bank said they will be compelled to take appropriate regulatory action to bring down market lending rates.

"The Monetary Board noted, with disappointment, that market lending rates have not declined in line with the series of measures taken to ease monetary policy and monetary conditions thus far during the year," the Central Bank said.

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"Policy interest rates of the Central Bank have been reduced by 150 basis points thus far in 2020, in addition to the other measures taken to ease monetary conditions in the market.

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Related: Central Bank of Sri Lanka further reduces policy rates to support economic activity

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