The Central Bank (CBSL) yesterday announced maximum interest rates as part of its measures to ensure effective benefits for all stakeholders.
This decision is in line with Directive No. 01 of 2019 of the Financial Affairs Act (maximum interest rates on deposits and debt securities) and Directive No. 04 of 2020 of the Financial Affairs Act. (changes in maximum interest rates on deposits and debt securities).
CBSL has stated that the maximum interest rates that may be offered or paid by Approved Finance Companies (LFCs) on Sri Lankan Rupee deposits will not exceed the interest rates calculated in accordance with Table 01 below and will replace Directorate ll (i) of the financial sector. Directive of Law No. 04 of 2020 on Changes in Maximum Interest Rates on Deposits and Debt Securities. The revised prices will be applicable from 01.11.2021 and will be in effect until further notice.
Banking sources said the 12-month fixed deposit rate cap has been raised to 9.88% per annum, with an additional 50 basis points for the elderly.
The maximum interest rates calculated for debt instruments in accordance with direction 1.2 of Directive 04 of the Financial Affairs Law of 2020 on changes to the maximum interest rates on deposits and debt instruments will remain the same.
The applicable SDFR and WAYR of 364-day Treasury bills on deposits and debt securities are shown in Table 02.