Credit Trend

Apr 22, 2012 (LBO) – State borrowings from Sri Lanka’s commercial banks including dollar credits reached 57.9 billion rupees in February 2013, but there was no central bank accommodation, official data showed. Central Bank credit fell from 266.3 billion rupees to 245.1 billion rupees indicating that the monetary authority was sterilizing forex purchases, building up reserves and not contributing to new inflation or currency weakness.

Credit to private business rose 18.0 billion rupees, higher than the 9.7 billion rupees in January to 2,386.10 billion rupees, though annual growth slowed to 13.3 percent from 15.5 percent a month earlier.

Credit to state enterprises from domestic banking unit (rupee denoted) rose 39.6 billion rupees to 729.0 billion rupees pushing annual growth to 35.6 percent from 27.6 percent in January.

Dollar denominated credit to the state rose 9.7 billion rupees to 131.6 billion rupees up 24.6 percent slowing from 34.2 percent a month earlier.

Credit to state enterprises from domestic banking units rose 73.0 percent to 95.2 billion rupees picking and dollar loans rose 25.4 percent to 204.8 billion rupees. Total outstanding credit to state enterprises rose by 8.6 billion