Sri Lanka’s Central Bank asks banks to reduce pawning advances interest rate

Oct 10, 2014 (LBO) – Sri Lanka’s Central Bank has requested all banks who are participating in the Credit Guarantee Scheme supported by the Government to reduce the applicable interest rate for such pawning advances to 12 per cent from the current rate of 15 per cent, with immediate effect. At present, 12 banks have joined the Credit Guarantee Scheme and such Banks grant advances up to 80 per cent of the market value of gold, the bank said in a media statement.