CB removes interest rate cap on bank deposits

The Central Bank yesterday said it has decided to withdraw the directive issued to impose maximum interest rates on rupee deposits in April, following the lending rate caps ordered on banks from next month.

The bank said the Monetary Board has decided to withdraw the Monetary Law Act Order No.01 of 2019, issued on April 26, 2019, imposing maximum interest rates on Sri Lanka rupee deposits, with effect from September 24, 2019.

The Central Bank on Tuesday ordered banks to cut lending rates at least by 2 percent, by October 15, while capping credit card interest rates at 28 percent.