SME interest rates reduced: PM

The special committee appointed to look into interest rate issues has recommended the reduction of interest rates granted to small and medium-sized enterprises (SME) by two percent, Prime Minister Ranil Wickremesinghe said today.

The Prime Minister announced that the government had decided to implement the recommendation immediately.

“There was a discussion between the Monetary Board, CEOs of banks, Ministry of Finance and my Ministry of National Policies and Economic Affairs on the interest rates following the complaints made by the entrepreneurs on high interest rates. A committee was appointed to look into the matter. I have just received the report of that committee. Accordingly, limits have been put to the deposit rates while interest rates will be reduced by two percent especially to help the small and medium industries. The Monetary Board will implement these measures next week,” the Prime Minister said.

“We were to reduce rates last year in the budget. However the country lost billion of dollars as a result of the political crisis last year. Therefore it was not possible to do it. Also there were debts to be settled. This too pushed the interest rates. However now we are in a position to reduce interest rates,” he added.

The Prime Minister added a further review would be done in several weeks. (Yohan Perera)

Video by AR Mahesh