The commercial banks active in Sri Lanka have reduced their interest rates to satisfactory levels, says the Governor of the Central Bank of Sri Lanka (CBSL).

CBSL Governor Ajith Nivard Cabraal said this in response to the question by AdaderanaBiz whether it would be an issue if the commercial banks do not reduce their interest rates while reciprocating to the reduction by the Central Bank.

However, some economic analysts point out that the prevailing interest margin in Sri Lanka is around 4.7 percent and that this is still unbearable by the people.

In countries like Hong Kong the interest margin is around 1.3 percent.

Interest margin is the difference between the interest provided by commercial banks on the cash deposits and on loans obtained by their customers.