The UNP has announced that they will reduce interest rates by 2% if they form a government.
I believe that a 2% reduction in rates will really increase consumption, particularly in the housing space. This will also have a major impact on counters like ESL and CFVF.
If the UNP is suggesting a further reduction in rates, can we expect a reduction of some sort by the Rajapakse regime? Although rates have been reduced, a lot of people are of the view that they have bottomed out. Based on the UNP statement, this may not be the case.
http://www.dailymirror.lk/54831/unp-to-present-its-own-budget-proposals