Private sector borrowing picks up in May

Monday, 7 July 2025 06:11 - - {{hitsCtrl.values.hits}}

Private sector borrowing picked up in May to Rs. 133 billion, resulting in the outstanding amount crossing the Rs. 8.6 trillion mark after a low demand in holidays-filled April.

As per latest Central Bank of Sri Lanka (CBSL) data, banking sector credit to the private sector in May amounted to Rs. 132.9 billion, recording a year-on-year growth of 16.1%. As at May 2025, total private sector credit outstanding was Rs. 8,634 billion or Rs. 8.63 trillion.

Amount borrowed in May was the second highest for 2025 so far, trailing Rs. 158 billion in March. In April, credit demand was low at Rs. 87 billion, a development linked to the Sinhala-Tamil New Year holidays.

February saw Rs. 105 billion in demand for credit, whilst January suffered a reduction of Rs. 4.6 billion following a recent high of Rs. 193 billion credit demand in December last year.

The CBSL in May said credit flows to the private sector remain strong, with all economic sectors benefitting from such expansion. It also said this credit expansion is expected to continue throughout the year with support from its last Monetary Policy easing move in May.

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