Regulatory Alerts2021-12-31 | Monetary Law Act Order No. 04 of 2021Amendment to the Monetary Law Act Order No. 03 of 2020 on Maximum Interest Rates on Mortgage-Backed Housing Loans
The Monetary Board of the Central Bank of Sri Lanka issued Order 04 of 2021 to amend maximum interest rates for mortgage-backed housing loans targeting salaried employees. The updated structure applies a fixed rate tied to the monthly Average Weighted Prime Lending Rate for the first five years, then shifts to a floating rate equal to the monthly AWPR plus 200 basis points for the remainder of the loan term. Monthly installments during the initial five-year phase are calculated using the disbursement AWPR across the full loan duration, with these rules becoming effective on 1 January 2022.
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