Despite the Central Bank’s directive, no licensed commercial bank has reduced the interest rates on lending products, the Joint Association of Leasing and Debt Instalment Payers says.
Association’s secretary Ruwan Pothupitiya, addressing a media briefing in Colombo, said some commercial banks have not even received the relevant circular, adding that the Central Bank governor is to blame for this.
On August 25, the Central Bank issued an Order reducing the interest rates on lending products of all licensed commercial banks and specialized commercial banks.
Accordingly, the interest rates on pawning facilities, pre-arranged temporary overdrafts, credit card advances and new/existing LKR-denominated lending products were also instructed to be reduced adequately.
The Order issued by CBSL’s Monetary Board on the interest rates applicable on LKR-denominated lending products of licensed banks, directed them to reduce interest rate on pawning facilities to 18% per annum, pre-arranged temporary overdrafts to 23% per annum and credit card advances to 28% per annum commencing the next billing cycle.
