COLOMBO (NewsRadio); The average weighted prime lending rate at licensed commercial banks has reduced by further 32 basis points to 13.68 per cent this week.
According to data from the Central Bank of Sri Lanka, the AWPR at commercial banks was 14 per cent last week while it was high as 29.51 per cent a year ago.
The considerable reduction comes after the Monetary Board reduced the policy interest rate during two consecutive months earlier this year and another reduction last week.
According to experts, the bank interest rates will come down further in the next few months even if the Central Bank decides not to reduce policy interest rates further.
Meanwhile, earlier this month, the Monetary Board of the Central Bank of Sri Lanka decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 100 basis points (bps) to 10.00 per cent and 11.00 per cent, respectively.
The Central Bank said the Monetary Policy Board expects that the reduction of policy interest rates, along with the significant easing of monetary policy previously, including the directions issued by the CBSL to licensed banks to reduce interest rates, and the significant reduction of risk premia on government securities, would accelerate the downward adjustment in market interest rates, particularly lending rates, in the period ahead.