Sri Lanka, July 10 -- An internal committee has been set by the Central Bank to expedite the monetary policy transmission through the real economy and to smoothen out any bottlenecks, as some delay is observed in passing down the full extent of the rate cuts, specially to small business loans.
While the rates offered to prime borrowers of banks-often referred to as the Average Weighted Prime Lending Rate (AWPLR)-has by and large closely followed the key policy rates adjustments made so far from the beginning of the year, the loan rates for small time borrowers have lagged behind.
The year-to-date drop in the AWPLR has been 146 basis points, closely in line with the 150 basis points cut in key policy rates by the Monetary Board before the ...