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Lending rates tick up as market liquidity swells

The Island

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October 06, 2025

The key lending rate for commercial banks saw a slight increase last week, while the overall financial system experienced a significant boost in liquidity, according to the latest data from the Central Bank of Sri Lanka.

- BY SANATH NANAYAKKARE

Lending rates tick up as market liquidity swells

Interest Rates

The Weekly Average Weighted Prime Lending Rate (AWPR), a key benchmark for lending, increased by 5 basis points to 8.10% for the week ending October 3, 2025. This uptick suggests a marginal rise in the cost of borrowing for the most creditworthy corporate clients.

In the money markets, the total outstanding market liquidity recorded a notable surplus of Rs. 172.36 billion by the end of the week. This is an increase from the Rs. 150.03 billion surplus seen the previous week, indicating a greater availability of funds within the banking system.

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