Regulatory Alerts2019-04-26 | Finance Business Act Direction No. 1 of 2019Maximum Interest Rates on Deposits and Debt Instruments
The Monetary Board of the Central Bank of Sri Lanka issued Directions No. 01 of 2019 to cap the maximum interest rates Licensed Finance Companies may pay on deposits and debt instruments. These caps are tied to the Standing Deposit Facility Rate and the Weighted Average Yield Rate of 364-day Treasury Bills, with specific premiums applied based on tenure and special allowances for senior citizens and children. The regulations, effective from 26 April 2019, replace the 2016 Direction and mandate quarterly reviews of reference rates alongside strict reporting requirements for compliance.
Share