The factors influence on average weighted prime lending rate (AWPLR) of Commercial Banks an empirical perspective in Sri Lankan context

Abstract

The purpose of this study is to identify the factors affecting Average Weighted Prime Lending Rate (AWPLR) of Commercial Banks in Sri Lanka. It could also ascertain the factors which have significantly contributed to the high level of lending interest rates currently prevailing in the market. Many factors affect the Average Weighted Prime Lending Rate, of which the researcher identified and tested three variables based on operating commercial banks in Sri Lanka. Inflation, Average Weighted Deposit Rate (AWDR) and Statutory Reserve Ratio (SRR) were tested for the purpose this research.