March 14 (NewsWire) – The Central Bank of Sri Lanka (CBSL) has announced that the higher interest rates on three transactions that were announced recently will come into effect from today.
The bank stipulated maximum interest rates that can be charged by licensed commercial banks and licensed specialized banks for the credit card advances, pre-arranged temporary overdrafts, and pawning advances.
On 4th March, the bank first announced the hike following the Monetary Policy Review after which policy rates were hiked sharply by 100 basis points.
The Central Bank had adopted monetary policy tightening measures to dampen the possible build-up of underlying demand pressures in the economy, expecting it to help ease pressures in the external sector, thus promoting greater macroeconomic stability.
Thereby, commencing today, the rates of the higher interest rates on three transactions are as follows:
- 20% per annum on credit card advances commencing from the next billing cycle
- 18% per annum on pre-arranged temporary overdrafts
- 12% per annum on the money lent for pawning advances collateralized by personal articles made of gold accepted as a pledge, for all new pawning advances and existing pawning facilities that are renewed