Interest rates lowered to boost business and investor confidence - Central Bank
[July 31, 2002 - 11.30 GMT] 

The Central Bank of Sri Lanka said today that the lowering of interest rates would increase business and investor confidence.

The Central Bank reduced its primary policy rates by 100 points Friday, July 26. The Bank reduced its overnight Repurchase and Reverse Repurchase from 11.50 percent to 10.50 percent and from 13.75 to 12.75 percent respectively.

“We expect a further reduction particularly due to the recent adjustments in the fuel rates,” Dr. A. G. Karunasena, Director, Economic Research said at a media briefing today.

“A reduction in interest rates is warranted at this time to indicate its expectations with regard to inflation and interest rates and to encourage economic recovery and investment,” the Bank said in a statement. “The Bank expects the commercial and other financial institutions to reduce their interest rates accordingly,” the statement added.

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Last Updated Date: July 31, 2002  - 11.30 GMT.