Regulatory Alerts2025-06-23 | Finance Business Act Directions No.01 of 2025Maximum Interest Rates on Deposits and Debt Instruments
The Central Bank of Sri Lanka issued Finance Business Act Directions No. 01 of 2025 to establish maximum interest rate caps for licensed finance companies on deposits and debt instruments. The required rates are calculated quarterly using either the Treasury Bills Weighted Average Yield Rate or the Overnight Policy Rate, with tenure-specific ceilings detailed in regulatory tables. Effective 1 July 2025, the new framework supersedes previous circulars and allows finance companies to pay up to fifty basis points higher rates for accounts held by minors and senior citizens.
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