CBSL Revises Fixed Deposit Ceiling Rate for Finance Companies

Issuing a new direction, the Central Bank of Sri Lanka (CBSL) allowed the country’s Finance Companies (NBFI)to set the ceiling rate based on the moving average of the last four T Bill auctions instead of quarterly adjustments, based on the yields of the previous month’s T Bill auctions.

The move is aimed at allowing NBFIs to reprice their deposits faster, and to be competitive against the current high deposit rates offered by the banking sector.

New rates as of yesterday are as follows.

1 Month: 14.71%
3 Months: 15.83%
6 Months: 16.33%

1 Year: 17.83%
2 Years: 18.58%
3 Years: 19.08%
4 Years: 19.08%
5 Years: 20.08%

However, the level of adjustment would also depend on NBFIs’ ALM, liquidity, pricing and competitive strategy.