• Wed. Jul 24th, 2024

Sri Lanka’s saving interest rates cross 5 percent

Sri Lanka’s saving interest rates are continuing on an upward trajectory in responding to monetary policy tightening measures taken by the Central Bank of Sri Lanka (CBSL).

The Average Weighted Deposit Rate (AWDR) reached a one-year high of 5.01 percent as of 22nd of January this year, up from 5.94 percent a year back and Average Weighted Fixed Deposit Rate (AWFDR) 6.05 percent from 5.94 percent at the same time.

The Average Weighted New Deposit Rate (AWNDR) and Average Weighted New Fixed Deposit Rate (AWNFDR) increased to 6.45 percent and 6.67 percent as of 21nd of December last year from 6.27 percent and 6.52 percent a month back, before the most recent policy rate hike by the CBSL.

However, the depositors are still getting negative returns as the inflation remains well above 10 percent. Due to this, other assets such as stocks, real-estates, and gold remain in high demand due to relatively high-returns.

The CBSL recently noted that the saving rates in the banking sector are adjusting too slowly to policy rate hikes.

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