Regulatory Alerts2017-05-26 | Circular No. 02 of 2017Interest Rates on Credit Products
The Central Bank of Sri Lanka issued Circular No 02 of 2017, effective July 1, 2017, granting licensed banks the flexibility to set interest and penal rates on credit products according to their internal policies. Licensed banks must publicly disclose applicable rates and penal interest computation methods on their websites, notify borrowers of rate changes before implementation, and report all rates weekly through a designated web-based surveillance system. Penal interest is now restricted to the outstanding arrears during the overdue period, and this directive supersedes four prior circulars governing credit card and loan interest rates.
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