Net credit to Govt. swells by half trillion in April, outstanding tops Rs. 8 t mark

Net credit to the Government from the banking sector swelled by half a trillion in April pushing the outstanding amount to cross the Rs. 8 trillion mark.

As per provisional data released by the Central Bank, the Government borrowed Rs. 523 billion in April whilst total outstanding as at end April was Rs. 8,091 billion. As at end 2022, the outstanding value was Rs. 7,471 billion.

Last week the Central Bank said net credit to the Government by the banking system that notably expanded in 2022 is expected to moderate with the receipt of substantial foreign financing to the Government.

Outstanding credit to public corporations saw a massive decline of Rs. 463.0 billion in April to Rs. 1,130 billion. As at end 2022, the figure amounted to Rs. 1,734 billion.

The CBSL said credit to the State Owned Business Enterprises (SOBEs) by the banking system is expected to reduce significantly in the period ahead, underpinned by the cost recovery pricing adopted by major SOBEs.