CB Credit Card removes interest rate caps

The Monetary Board of the Central Bank of Sri Lanka has decided to remove the restrictions on credit interest rates on credit cards, pre-arranged temporary overdrafts and mortgage facilities to facilitate the effective transmission of policy adjustments.

The Board noted that such policies and regulatory measures, based on rapid transmission, increase the cost of funding, thereby expanding cash and credit.

Giving back excess cash in circulation to the banking system; Elimination of interest rate anomalies; Easing pressure on the exchange rate; And the demand of the economy involves the building of pressure.