February 3, 2023

Borrowers can negotiate interest rates on their loans with Banks for a grace period – CBSL

2 min read

The Governor of the Central Bank of Sri Lanka (CBSL)Dr. P. Nandalal Weerasinghe stated in Parliament that customers who have been inconvenienced due to the increase in the interest rates charged for the loans obtained under variable interest rates in the past are able to get relief by negotiating with the bank.

The Governor stated this when Parliamentarians inquired regarding the aforesaid at the Ministerial Consultative Committee on Finance, Economic Stabilization and National Policies held on Wednesday in Parliament chaired by the State Ministers of Finance Ranjith Siyambalapitiya and Shehan Semasinghe.

The Members of Parliament pointed out that due to the increase in interest rates, the entire income of some creditors has to be paid for loan installments.  The CBSL Governor said that customers can pay only the relevant interest for a grace period in consultation with the bank. He further added that instructions have been given to the banks in this regard.

Also, the CBSL Governor said that the average inflation which was at a value of 70% two months ago has now decreased to 66% and the food inflation which was at 95% has decreased to 85%. He further stated that with the existing fiscal policies, this figure is expected to reach 4-5% by the end of next year.

Furthermore, according to the conditions of the International Monetary Fund, a new act has been drafted to make the Central Bank an independent institution and the necessary work is being done, the CBSL Governor added.

Furthermore, the committee drew attention to the difficulty in exchanging dollars to rupees by banks. State Minister of Finance Ranjith Siyambalapitiya asked the CBSL Governor regarding the stated issue to which the Governor responded saying that the Central Bank has not given any advice that would cause such delays.

State Minister Shehan Semasinghe also said that according to a report of the Department of Public Enterprises, 22 out of 126 institutions have not submitted their annual reports for more than 5 years and some institutions have delayed the submission of annual reports for about 7 years. Accordingly, the State Minister said that since he will be working with the International Monetary Fund in the future, he instructed the heads of the institutions to submit the annual reports within the stipulated time.

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