Regulatory Alerts2018-12-03 | Direction No. 8 of 2018Maximum Rate of Interest on Microfinance Loans
The Central Bank of Sri Lanka issued Directions under the Finance Leasing Act to cap the maximum interest rate on Microfinance loans granted by Specialized Leasing Companies at 35 percent per annum. This regulation applies to all Microfinance loans issued from the date of the directive and defines such loans as those for individuals or groups engaged in income-generating activities or micro enterprises. Specialized Leasing Companies are required to report these loans via the Financial Information Network and must adhere to the statutory definition of micro enterprises based on turnover and employee count.
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