Regulatory Alerts2022-04-18 | Letter to CEOs of LFCsAmendments to the Maximum Interest Rates on Deposits and Debt Instruments by Licensed Finance Companies
The Central Bank of Sri Lanka revoked previous directions and letters to allow Licensed Finance Companies to determine maximum interest rates on deposits and debt instruments based on the Standing Deposit Facility Rate and the moving average of Treasury bill yields. The new framework specifies distinct rate caps for various tenures, linking short-term deposit rates to 91-day yields and longer-term rates to 364-day yields plus fixed spreads. LFCs are permitted to revise these rates daily following Treasury bill auctions while maintaining prudent asset and liability management practices.
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