HNB cuts lending rates

Hatton National Bank (HNB) reduced its interest rates in an effort to stimulate growth in the country. The bank took this decision after taking into consideration the recent announcement made by President Mahinda Rajapaksa requesting all State banks to reduce interest rates. The reduction in rates will be applicable for new loans and advances the bank will grant in the future and will be mainly focused on SME and growth sectors of the country.

High interest rates and inflation that prevailed in the recent past discouraged new investments and the banking sector witnessed a drop in loans and advances over the past 12 months. The reduction in interest rates would increase demand for credit and stimulate growth in the economy, the Bank said.