Maximum Interest Rates For Forex Deposits Removed
Posted 17,March

By Chehan Jayasuriya

In Local News

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The Central Bank of Sri Lanka (CBSL) revoked the cap set on interest rates on foreign currency accounts, effective 11th March. Instructions were issued to licensed commercial banks and the National Savings Bank (NSB)to cancel the 5% cap on interest rates for foreign currency accounts.

The announcement comes after CBSL’s decision to raise rupee interest rates by 100 basis points a fortnight ago and allowed greater exchange rate flexibility days later. Earlier instructions said banks must pay the higher between the 1-year Treasury bill rate, less 150 basis points or 5 percent for deposits with one year or less maturity.

“Considering the recent monetary policy tightening measures, the expected macro-economic developments and the prevailing interest rates on foreign currency deposits of licensed banks, the Monetary Board hereby issues an amendment to the Monetary Law Act Order No.03 of 2021 on maximum interest rates on foreign currency deposits of licensed commercial banks and the National Savings Bank, removing the existing maximum interest rate limits imposed on foreign currency deposits of licensed commercial banks and the National Savings Bank,” the Central Bank said.