Siyambalapitiya tells banks to lower interest rates following CB directive

Thursday, 28 March 2024 03:32 - - {{hitsCtrl.values.hits}}

In the wake of the Central Bank’s decision to lower the bank interest rate, State Minister of Finance Ranjith Siyambalapitiya has called on commercial banks to swiftly follow suit and pass on the benefit to their customers.

He stressed the importance of easing the financial burden on borrowers, particularly small and medium-sized enterprises (SMEs) to stimulate economic growth.

The State Minister also underscored the potential for lowering loan interest rates to boost investor confidence and spur economic activity. “By providing more affordable financial solutions, commercial banks can empower businesses to access the capital they need to expand operations and drive economic progress,” he added.

Acknowledging the challenges commercial banks may face in adjusting interest rates, particularly in managing high-interest fixed deposits, Siyambalapitiya urged banks to prioritise the interests of consumers.

Despite the short-term financial implications for banks, he asserted the long-term benefits of encouraging an environment conducive to investment and economic growth.

He reiterated the importance of aligning banking policies with broader economic objectives, insisting on the need for collaborative efforts between financial institutions and policymakers to promote sustainable economic development and prosperity.

Reflecting on Sri Lanka’s recent economic challenges, Minister Siyambalapitiya stressed the need to increase interest rates to combat high inflation.

Central Bank to step up revival of businesses