Srilanka, Jan. 9 -- The Central Bank yesterday announced plans to reduce the high interest rates on the credit facilities extended to the micro, small and medium-sized enterprises (MSMEs), in close collaboration with the financial institutions.

Central Bank Governor Dr. Nandalal Weerasinghe, delivering the Central Bank's Policy Agenda for 2025 and beyond, admitted the excessive interest rate burden on the MSMEs, despite a general decline in the market lending rates. He emphasised that while the risks associated with lending are decreasing and the credit appetite is improving, certain sectors still face disproportionately high rates.

"The Central Bank will closely work with the banks and other financial institutions to reduce the excess...