Regulatory Alerts2022-03-11 | Monetary Law Act Order No. 02 of 2022Amendment to Maximum Interest Rates on Foreign Currency Deposits of Licensed Commercial Banks and the National Savings Bank
The Monetary Board of the Central Bank of Sri Lanka issued this order to remove maximum interest rate caps on foreign currency deposits for licensed commercial banks and the National Savings Bank. Citing recent monetary policy tightening and prevailing market rates, the directive deletes Orders 2 and 3 of Order No. 03 of 2021 under Section 10a(1)(a) of the Monetary Law Act. Financial institutions may now set deposit rates freely without statutory limits, reflecting expected macroeconomic developments.
llMarch2022 MONETARY BOARI) CENTRAL BANK OF SRI LANKA MONETARY LAW ACT ORDER No.02 of 2022 AMENDMENT TO THE MAXIMUM INTEREST RATES ON FOREIGN CURRENCY DEPOSITS OF LICENSED COMMERCIAL BANKS AND THE NATIONAL SAVINGS BANK Issued under Section 10a(1)(a) of the Monetary Law Act, No. 58 of l94i,as amended. Considering the recent monetary policy tightening measures, the expected macroeconomic developments and the prevailing interest rates on foreign culrency deposits of licensed banks, the Monetary Board hereby issues an amendment to the Monetary Law Act Order No. 03 of 2021 on Maximum Interest Rate on Foreign Currency Deposits of Licensed Commercial Banks and the National Savings Bank, removing the existing maximum interest rate limits imposed on foreign cuffency deposits of licensed commercial banks and the National Savings Bank. Accordingly, Orders 2 and 3 of the cited Order are deleted. A;u ^sJ cJ<- Nivard Ajith Leslie Cabraal Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka