Banks increasing rates for overseas online payments ?

Banks increasing rates for overseas online payments ?

Written by Staff Writer

19 Aug, 2021 | 11:21 pm

COLOMBO (News 1st); Several commercial banks in Sri Lanka have increased the RATE OF EXCHANGE applied at the time of purchase when carrying out international payments using debit or credit cards.

This move, as experts say, will have an impact on the e-commerce industry as well as the overall economy of the country.

The amount added to the rate of exchange at the time of billing stood at 2.5%.

According to information made available by several commercial banks operating in the country, this value has now been increased to 7% on overseas transactions.

However, the Central Bank of Sri Lanka says that they are only maintaining an 18% interest rate cap per annum and that this move by commercial banks is made individually by those respective banks.

T M J Y P Fernando, the Deputy Governor of the Central Bank said beyon the 18% interest cap on credit cards, there are no charges by the central bank or any limits.

“I think we need to look at this and we will have to kind of identified respective banks and see what this is,” he said.

HOW WILL THIS IMPACT THE E-COMMERCE INDUSTRY?

Sri Lanka Entrepreneur & Founder of ‘Kapruka’, Dulith Herath speaking to News 1st said this move will have a direct impact on those making direct purchases from platforms like Ali Express, E-Bay and Amazon.

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