Regulatory Alerts2023-08-25 | Monetary Law Act Order No. 01 of 2023Maximum Interest Rates on Rupee Denominated Lending Products
The Central Bank of Sri Lanka has issued an Order mandating licensed banks to cap maximum interest rates on all Rupee-denominated lending products. The directive requires immediate reductions for specific facilities, capping pawning at 18 percent, temporary overdrafts at 23 percent, and credit card advances at 28 percent. Additionally, all other qualifying loans must decrease by at least 250 basis points by October 31, 2023, and a further 100 basis points by December 31, 2023, while penal interest is capped at 200 basis points above standard rates.
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