SRI LANKA, April 14 -- The government is in the process of formulating a mechanism to improve private sector borrowings from the banking sector to enable credit growth to reach anticipated 4 percent of GDP growth.
As Sri Lanka's bank credit extended to the private sector decelerated significantly in the first two months of the year, the government plans to bring down the high market interest rates by 200 basis points, to maintain private sector credit growth at 13.5 percent this year, to reach the anticipated 4 percent GDP growth.
Prime Minister Ranil Wickremesinghe recently appointed a Working Group chaired by Central Bank Monetary Board member Nihal Fonseka to come up with specific measures to bring down the high interest rates, which h...