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Home » Pawning | Credit Card Interest Rates ⤵️ Dropped ⤵️

Pawning | Credit Card Interest Rates ⤵️ Dropped ⤵️

The Central Bank of Sri Lanka (CBSL) says its Monetary Board has decided to impose caps on interest rates on pawning facilities, pre-arranged temporary overdrafts and credit cards for all licensed banks.

Accordingly, the maximum interest rate for pawning facilities is set at 18% per annum, 23% per annum on pre-arranged temporary overdrafts, and 28% per annum on credit cards, for all licensed banks.

Further, the Monetary Board was of the view that penal interest rates need to be capped at 2 percentage points over the regular interest rates charged on the relevant credit facility, the CBSL said further.

In addition to the above, the Monetary Board has noted that other market lending interest rates on rupee loans and advances should also adjust downwards further, in line with the relaxed Monetary Policy 5 stance.

The CBSL said directives would be issued shortly to make these regulated interest rates effective. These directions will be subject to further review to ensure that the overall lending interest rate structure remains in line with the monetary policy measures of the Central Bank in the period ahead.

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