Short answer: personal loan rates in Sri Lanka rose through the second half of 2026. After the Central Bank raised its policy rate by 100 basis points to 8.75% on 26 May 2026, the Average Weighted Prime Lending Rate climbed from 10.76% in mid-September to 11.16% in the week to 9 October. Personal loans are priced above that: among banks that publish their rates, People's Bank lists 13%–15% on general personal loans and Cargills Bank from 12% for professionals and 13.5% for salaried borrowers. Most big banks do not publish a dated rate sheet, and several have moved to fixed rates or suspended floating ones. Compare offers using the Key Facts Document every lender must give you, which shows the annual effective rate including fees.
LKBR1312Below: where rates stand, what banks publish, fees, fixed versus floating, eligibility and how to compare.
Where rates stand in 2026
| Indicator | Value |
|---|---|
| CBSL Overnight Policy Rate | 8.75% (raised from 7.75% on 26 May 2026; next review 20 November 2026) |
| AWPR, week to 18 September 2026 | 10.76% |
| AWPR, week to 25 September 2026 | 10.94% |
| AWPR, week to 2 October 2026 | 11.04% |
| AWPR, week to 9 October 2026 | 11.16% |
What banks publish
| Bank | What its own materials show (2026) |
|---|---|
| People's Bank | 13%–15% on general personal loans; 10%–10.5% fixed on a special scheme for high credit scores (key facts document, September 2026) |
| Cargills Bank | From 12% for professionals and 13.5% for salaried employees |
| Commercial Bank | Fixed rates apply, floating temporarily suspended; rate not stated publicly |
| DFCC Bank | Fixed rates for 3–5 years; prevailing rate given at branches or online |
| BOC, HNB, Sampath, NDB, Seylan, NTB | No dated public rate sheet for personal loans |
Rates are personalised: a high CRIB grade, a salary remitted to the bank and a professional or corporate package all lower the offer. For Bank of Ceylon's schemes specifically, see our guide to the BOC personal loan.
What a few points cost
For a loan of LKR 1,000,000 over five years, 12% means a monthly instalment of about LKR 22,244 and total interest of about LKR 334,667; at 15% the instalment is about LKR 23,790 and interest about LKR 427,396. That is nearly LKR 93,000 more for three percentage points, before fees. The figures are our own calculation.
Fees to include
- Processing fee, often 1%–2% of the loan or a tiered fixed amount.
- Government stamp duty.
- CRIB report charge.
- Early or part-settlement fee, commonly 1%–5%.
- Penal interest or late fees on overdue instalments.
Fixed or floating
A floating rate is the AWPR plus the bank's margin and is usually reset every quarter, so your instalment or tenure changes with it. With the AWPR rising since May, several banks moved to fixed rates or suspended floating options. A fixed rate protects you if rates keep climbing; a floating one only helps if they fall.
Eligibility and documents
Banks generally ask for a minimum net salary, an age limit at maturity, salary remittance to the bank with an employer undertaking, and often guarantors, which may be waived for high CRIB grades or professional packages. Bring your NIC, three to six months of pay slips and bank statements, an employer letter and proof of address. Check your record first with our CRIB report guide.
Your rights when comparing
Under the Central Bank's Financial Consumer Protection Regulations of 2023, lenders must give you a Key Facts Document before you sign, with the annual effective rate including all fees. There is no statutory cooling-off period for personal loans, so compare before signing. Unresolved complaints go to the Central Bank's Financial Consumer Relations Department or the Financial Ombudsman.
The Central Bank held its policy rate at 8.75% on 30 September 2026, after the May increase, and its next decision is due on 20 November 2026 (as of October 2026). It also signed a three-year framework on 1 October 2026 that keeps the inflation target at 5% with a ±2% band through 2029, so future rate moves will be judged against that target.
From 1 January 2027, CBSL Guideline No. 01 of 2026 applies to all credit cards. It sets a 365-day interest calculation from the transaction date, a minimum 21-day interest-free period when you pay in full, a ban on automatic limit increases and closure of cards inactive for over a year. Banks must have board approval by 30 October 2026 and systems ready by 30 December 2026.
Penal interest on a missed personal loan instalment is capped at 2%–5% a year above your normal rate and can only be charged on the overdue amount, not on future capital. A part-settlement fee of 1%–5% of the outstanding balance can still apply if you clear the loan early, so check that clause in the personal loan guide and confirm your CRIB report before applying.
How to get the best rate
Ask at least two banks, including the one that receives your salary, for a Key Facts Document, compare the annual effective rate and total repayable, and decide between fixed and floating with the rising AWPR in mind. A better CRIB grade and a shorter term are the two levers most within your control.
Before you sign anything, ask for the Key Facts Document and check three clauses: penal interest, early settlement and the salary-transfer condition. The penal interest cap protects you if you miss an instalment, but the early settlement fee still applies if you clear the loan ahead of schedule. If your salary stops going to the bank, it may raise your rate. Pull your own CRIB report first; a cleaner record can move you from a general rate to a scheme rate. Then compare the annual effective rate, not the headline figure, because the policy rate decision on 20 November 2026 could change floating offers.