In response to the reduction in policy interest rates, the Central Bank announced that it will take action against banks that fail to lower their interest rates accordingly.
The policy interest rates have been decreased by 2 percent, following a previous reduction of 2.5 percent in June. Consequently, the current policy interest rates stand at 11 percent for deposits and 12 percent for lending.
Dr. Nandalal Weerasinghe, the Governor of the Central Bank, stated that the average weighted lending rate has decreased from 29 percent to approximately 20 percent as a result of the June policy rate cut and other positive developments in the economy. (NewsWire)