Regulatory Alerts2020-08-21 | Monetary Law Act Order No. 2 of 2020Maximum Interest Rates on Lending Products of Licensed Banks
The Monetary Board of the Central Bank of Sri Lanka has issued Order No. 02 of 2020 to cap maximum interest rates on Sri Lanka Rupee-denominated lending products offered by licensed commercial and specialised banks. The directive mandates specific ceilings of eighteen percent for credit card advances, sixteen percent for temporary overdrafts, ten percent for gold-collateralized pawning facilities, and two hundred basis points for penal interest on overdue or excess amounts. Effective 24 August 2020, banks must continuously align other credit facility rates with declining market trends upon renewal or repricing while preserving previously granted COVID-19 economic relief concessions.
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