The interest rate cut will benefit the business sector more now. With more investments which will be implemented now there will be significant employment provided.

Many businesses are done by the SME sector and they are the ones who mostly operate on bank loans and will benefit by the new scheme. The SME’s now will have a higher chance of borrowing from banks and there will be less hesitation about borrowing.

According to some top officials the interest rate cut was a request made to the government several times in many circumstances, which was not answered till now.

"The government bank’s will have to change but it is up to the private bank’s to decide what they will be doing"

"If the private banks also are willing to lend at low rates it will bring added benefit to the SME’s"

"We have made the request a long time back; it was requested many times by many chambers to prevent the downfall of business due to funding issues" an official said.

"This is a late advantage; it should have been decided earlier" Newton Wickramasuriya the chairman of Ceylon National chamber of industries told the Island Financial Review.

According to E.M Wijetillaka CEO of National Chamber of Commerce of Sri Lanka "With the interest rate cut down to 8-12 percent now the so called fund issue will be reduced to a high degree"

"Business can be increased and with the new policy it will be easier to get loans from an institution" he told the Island Financial Review.

This will lead to starting new businesses, as there is more potential which was held back.

Investors were not very keen on borrowing on high interest rate.

"There is a far reaching benefit with the new investments which will come in and the employment provided" Newton said.