Interest rates on credit cards will advance to 28% per annum commencing the next billing cycle, decided the monetary board of the Central Bank (CBSL).
Also, interest rates on pawning facilities will be reduced to 18% per annum.At the same time, interest rates on pre-arranged temporary overdrafts will be dropped to 23% per annum, said the CBSL.
It said it has adopted several policy measures in the recent past such as reduction of policy interest rates and the statutory reserve ratio, thereby facilitating a reduction in market interest rates.
Despite the considerable easing of monetary conditions, interest rates on lending products of certain financial institutions continue to remain excessive.
They are not in line with the current monetary policy stance, posing challenges for individuals and businesses.