Rate Cut

Jan 22, 2010 (LBO) – Sri Lanka’s central bank said loans given to war torn northern and eastern areas for economic revival under a special scheme would be cut to 9.0 percent from the current 12.0 percent.

The central bank said the loans were available from Bank of Ceylon, People’s Bank, Hatton National Bank, Commercial Bank, Seylan Bank, SANASA Development Bank, Sampath Bank and DFCC Bank.

The loans are for agriculture, livestock, and micro and small enterprises, with a maximum limit of 200,000 per borrower, under the ‘Awakening North’ and Development of the East’ schemes.

The repayment period could be a maximum of five years with a grace period of six months.