Credit Build

August 17, 2007 (LBO) – Sri Lanka's banking sector assets had expanded 9.5 percent, with loans rising 11.2 percent against deposit growth of 7.6 percent, the Central Bank which regulates the sector said. . "Banking sector has shown a significant expansion during the first half of 2007 reflecting continued expansion in economic activity," the Central Bank said in a statement.

Performance

Assets had grown by 203 billion rupees. Loans grew by 144 billion rupees outpacing total deposits, which grew by 114 billion.

Banks had earned a pre-tax profit of 26 billion rupees up 23 from 21 billion last year.

"This profit growth has led to increase the return on assets from 2.2 percent to 2.3 percent," Central Bank said.

Nearly 40 percent of the banking sector income was spent on operational expenses, staff and shareholders while 50 percent was paid to depositors and creditors as interest and the balance 10 percent to the government as taxes.

After tax profit numbers were not mentioned. A breakdown given between lending to government and the private sector was also not given.

Forty five new banking outlets had been opened out of which 14 were in the Colombo district and 3

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