CBSL urges banks to ‘adequately reduce lending rates’ without delay
23-Jul-2023Governor of the Central Bank of Sri Lanka (CBSL) has urged licensed commercial banks to take immediate measures to adequately reduce lending rates in view of the recent reduction of policy interest rates.
Governor of the Central Bank of Sri Lanka (CBSL) has urged licensed commercial banks to take immediate measures to adequately reduce lending rates in view of the recent reduction of policy interest rates.
Dr. Nandalal Weerasinghe, in a letter directed to the Sri Lanka Banks’ Association (SLBA) chairman, said the Central Bank would be compelled to take administrative measures in the event the banking and financial sector fails to take adequate and expeditious adjustments in this regard.
Dr. Weerasinghe called for a concerted effort to reduce lending rates as it will enable individuals and businesses to re-commence or continue the repayment of credit facilities and improve the sustainability of borrowers which will lead to a positive impact on the real sector resulting in the banking sector performance to improve.
According to the governor, the central bank strongly expects this will contribute to enhancing the resilience of banks, thereby enabling expansion of banking business in the period ahead.
Hence, he urged licensed commercial banks to take measures to adequately reduce lending rates without delay.
