Jan 17, 2011 (LBO) – Credit to private citizens from Sri Lanka’s commercial banks rose 23.1 percent in November 2010 from a year earlier, while credit to government also rose at a slower 10.8 percent, official data showed. In November banks loaned 46.3 billion rupees to private borrowers, down slightly from 51.4 billion rupees in October taking up total bank credit to 1,459.2 billion rupees.
In the 11 months to November 2010 banks had loaned a total of 264 billion rupees to private borrowers. The central bank cuts it repo rate by a further 25 basis points to 7.0 percent in December to boost credit.
Credit to state enterprises rose a steep 85.7 percent to 136.4 billion rupees from a year earlier. In the month of November alone state enterprises had borrowed 15.2 billion rupees from commercial banks.
State enterprises, especially energy utilities borrow money and many enterprises run large losses backed by credit from state-run banks and Treasury subsidies given with money taxed from the people.
Credit from banks to the central government rose to 670.5 billion rupees in November from 656.5 billion a month earlier, while credi