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Sri Lanka is recovering from a balance of payments crisis, which was originally fired by central bank credit injections to the banking system through sterilized forex sales while state energy enterprises in particular borrowed heavily from banks.
The cycle is now being reversed.
In October, credit to private borrowers also rose 27.
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2 billion rupees to 2,496.7 billion rupees, sharply up from 4.9 billion rupees a month earlier and 3.2 billion rupees in August.
Credit to the central government rose 36.7 billion rupees in October 2013 to 1,329.0 billion rupees, after falling 50.3 billion rupees in September to 1,292.3 billion rupees from 1,342.6 billion rupees in August.
In October credit to state enterprises fell 12.5 billion rupees to 326.8 billion rupees, for the third straight month, pointing to improved finances in state energy enterprises, which are the biggest borrowers.
In September, state-run National Saving Bank, which is not a commercial bank, raised 750 million US dollars