Regulatory Alerts2021-12-30 | Monetary Law Act Order No. 3 of 2021Maximum 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 has issued Order No. 03 of 2021 to establish maximum interest rates for foreign currency deposits at licensed commercial banks and the National Savings Bank. Rates for deposits maturing within one year are calculated as the simple average of 364-day Treasury Bill yields from the previous quarter minus 150 basis points or five percent, whichever is higher, while longer-term rates follow market behavior. The directive also caps USD/LKR swap transactions at ten percent annually, mandates weekly reporting and customer disclosure of rates, takes effect on 31 December 2021, and rescinds the preceding August order.
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