Sri Lanka, June 30 -- The prime lending rate eased marginally in the week ended June 26, marking the first decline since the Central Bank's surprise interest rate hike last month.

However, the borrowing costs remained close to their highest levels in two years, as the banks continued to price in inflation and currency risks. This could pose as a growing challenge for the businesses seeking to finance expansion and investment.

The Weekly Average Weighted Prime Lending Rate (AWPR), a benchmark for lending to the most creditworthy corporate borrowers, fell by three basis points to 10.39 percent, from 10.42 percent a week earlier, according to the Central Bank's Weekly Economic Indicators report.

The decline follows a sharp increase in t...