CBSL to look into possibility of removing surcharge on settling loans, leases before due dates

Prime Minister Mahinda Rajapaksa has instructed the Central Bank of Sri Lanka to look into the possibility of removing the surcharge on settling bank loans and vehicle leasing instalments before due dates.

He has also proposed a common policy to be set up in order to abolish the surcharges by financial institutions.

The matter has been taken up for discussion during the recent progress review meeting held at the Ministry of Finance.

When settling loans and leasing instalments ahead of the due date, financial institutions charge a surcharge of 3% of the amount the customer has to pay.

It was revealed that financial institutions terminate the respective agreements without levying the surcharge only at the request of the customer.

As all financial institutions are under the supervision of the Central Bank, the Premier has instructed the officials to explore the possibility of scrapping the surcharge.

State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal, who attended the meeting, stressed that levying such surcharges is an unfair move which should be brought to an end.