CBSL pumps Rs.150 bn to banking system | Daily News


CBSL pumps Rs.150 bn to banking system

Commercial banks to lend at 4% interest

The Central Bank of Sri Lanka (CBSL) has taken several policy decisions and also made certain changes to stimulate the country’s economy severely hit by the COVID-19 pandemic, Co-cabinet Spokesman, Higher Education, Technology, Innovations and Media Minister Dr. Bandula Gunawardena said.

At the Cabinet Media Briefing held yesterday at the Government Information Department, Minister Gunawardena said President Gotabaya Rajapaksa presented a special Cabinet paper to the Cabinet on Wednesday for Ministers to be aware about these changes and policy decisions taken by the CBSL.

Accordingly, Sri Lanka has cut the Statutory Reserve Ratio (SRR) reducing the share of deposits that banks have kept in the CBSL to two percent from four percent.

The CBSL has also decided to issue an additional Rs.100 billion for commercial banks at one percent to grant loans under credit schemes which will take the total to 150 billion rupees. As a result of this, commercial banks will be able to provide more loans at the interest rate of four percent.

A decision has also been taken to provide low interest loans for building contractors and suppliers who have not yet received their due payments for the constructions carried out under the previous Government by keeping their unsettled bills as assets.

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