A recent survey conducted by the Central Bank has revealed that commercial banks could further reduce their interest rates. Under this circumstance, the Central Bank had twice requested the commercial banks to reduce their interest rates and several banks had already responded and done so, said the Central Bank Governor. He also pointed out that interest rates could only be reduced to a certain extent so as to maintain a balance between the deposit and lending interests.

Economic analysts point out that Sri Lanka is prominent as a country with a high bank interest margin.(KH/SI)