State Minister of Finance Ranjith Siyambalapitiya has warned that the Central Bank of Sri Lanka (CBSL) remains on high alert with regard to those commercial banks that are yet to reduce their interest rates.

Speaking to the media in Avissawella on Monday (23), Siyambalapitiya noted that the CBSL would continue to closely monitor all commercial banks and financial institutions that have failed to abide by the recent circular issued by the CBSL, pertaining to the reduction of interest rates.

Acknowledging that certain banks may face a rather difficult situation when adapting to lower interest rates – after allowing for large long-term deposits when the interest rates were higher – the State Minister explained that the CBSL reduced interest rates in an attempt to ease the burden on the people.

Thus, he reasserted the Government’s stance that all public and private commercial banks – together with financial institutions – should reduce their interest rates in accordance with the circular issued by the CBSL immediately.

State Minister Siyambalapitiya further emphasised that a strict investigation would be conducted by the CBSL in this regard.