Credit Status

Mar 30, 2010 (LBO) – Credit to Sri Lanka’s private borrowers from commercial banks was steady at 1,195.8 billion rupees in January 2010 while loans in domestic currency rose slightly, the latest official data shows. Loans from rupee books of commercial bank rose to 1,048.7 billion rupees in January from 10,43.8 billion a month earlier. Loans in foreign currency fell to 147.1 billion rupees from 151.4 billion rupees.

Credit to government rose to 656.9 billion rupees from 639.4 billion rupees. Net credit from the central bank showed a fall to 102.8 billion rupees from 109.0 billion a year earlier.

Loans from rupee books of banks to the government rose to 435.2 billion rupees from 404.8 billion rupees.

Credit to government had been revised down from 692.3 billion rupees in December to 639.4 billion rupees following the discovery of a classification error by banks, which had reported central bank securities purchases as credit to government. Under Sri Lanka’s monetary law, the central bank can issue its own securities to mop up excess liquidity.