Sri Lankan central bank threatens regulatory action to bring down rates

CBSL cuts rates again and warns banks they must pass lower rates on to customers

Central Bank of Sri Lanka
Central Bank of Sri Lanka
Amithasundar/Wikimedia Commons

The Central Bank of Sri Lanka is threatening banks with regulatory action if they fail to pass on rate cuts.

The CBSL’s monetary board cut its main deposit and lending rates by 50 basis points at an unscheduled meeting on May 6. The deposit rate now stands at 5.5% and the lending rate at 6.5%, both down 150bp since the start of the year. Required reserves are unchanged at 4%.

But the monetary board expressed its “disappointment” that market rates had not followed the central bank rates down.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account