Aravinda de Silva Calls for Further Lending Rate Cuts to Fuel 8% Growth 📈

Investor and entrepreneur Aravinda de Silva, speaking at the Almas Securities Investor Forum, urged for a further reduction in interest rates to stimulate the economy and support new business creation. • Banking & Finance: Criticsed the banking sector for prioritizing "enormous profits" through Government securities rather than funding the real economy. He highlighted the difficulty SMEs and young entrepreneurs face in accessing credit. • Current Market Indicators: Private sector borrowings rose 25.2% in 2025 to a record Rs. 10.2 trillion. Average Weighted Prime Lending Rate: ~8%. Average Weighted SME Lending Rate: 12%. New SME Lending Rate: ~11%. • Key Economic Reforms: Stressed the urgent need to expedite reforms in labour, energy, and customs. Failure to liberalize trade and create a level playing field may result in lost growth opportunities. • High-Growth Sectors: Identified logistics, mineral, digitization, and sports as areas with high investment potential. He believes digitization is critical for scaling the private sector to a global level. • Outlook: Projected that with the right reforms, Sri Lanka has the potential to achieve 7% to 8% GDP growth. De Silva recently launched the Sri Lanka Opportunity Fund with a $100 million target to support local startups.