President Mahinda Rajapaksa in his capacity as Minister of Finance  

yesterday reduced and adjusted the interest rates on loans to public servants to the rage of  8% - 12%, a media release form the President Media Unit said.

The President issued immediate directives to all Heads of state banks in this regard.

Earlier, the interest rates stood between 15%-22%.

These directives  were made at a meeting at Temple Trees with the chairmen of state banks where the future of economic situation in the country was discussed. The President said the reduction in the interest rates will be an impetus to the countriy's future in the agriculture tourism, fisheries, medium scale industries and other medium level enterprises.

He said the  reduction in interest rates will be applicable to loans already obtained and installments should be adjusted accordingly.

All   loan applications submitted by public servants will be met before December 10th ,the President directive said.

 All surcharges on defaulted installment will be suspended.

He also ordered the state banks to provide concessions on interest rates set on loans already obtained by ordinary citizens