The Monetary Council issued an ordinance on the maximum interest rates payable for the currency deposit products of licensed commercial banks and the National Savings Bank.
Maximum interest rate on FCY deposits
The maximum interest rates that will be offered or paid by an approved commercial bank and the National Savings Bank on Foreign Currency Deposits (FCY) are as follows;
(i) whose maturity is less than or equal to one year is based on the simple average of the primary market yields of 364-day Treasury bills determined at auctions held during the last calendar month of the previous quarter minus 150 points basic, or 5%, whichever is greater;
(ii) with a maturity of more than one year will be determined on the basis of market behavior.
In the case of special FCY deposit accounts, the additional interest rate that may be offered or paid will be higher than the applicable interest rate above.
Authorized banks are also responsible for executing USD / LKR swap transactions, subject to a maximum USD interest rate of 10% per annum.
These Orders will come into effect from today and will be applicable to new FCY deposits, existing FCY savings deposits and renewal of FCY term deposits.