The Central Bank of Sri Lanka (CBSL) intends to establish a ‘permanent single digit interest rate structure’ in the economy whilst remaining focused on maintaining market interest rates at single-digit levels going forward, CBSL Governor Prof. W.D. Lakshman said yesterday (04).
Delivering the ‘Road Map 2021: Monetary and Financial Sector Policies for 2021 and Beyond,’ Governor Lakshman stated that the business community will benefit from low-cost borrowing facilities corresponding to a low interest rate regime.
“This is imperative to promote investment and entrepreneurship in the country, the needed foundation for sustained high economic growth,” he said.
“The availability of low-cost funding on a sustainable basis would encourage businesses, including start-ups, to venture into new industries and sectors that have high growth potential,” he added.
Speaking further he stated that for the sustainability of the low interest rate structure, it is essential that foreign exchange leakages for non-essential imports and outward investment are minimised, thereby allowing the domestic production economy to reap the intended benefits from 12 easy monetary conditions.