Credit Trends

Directory launched in the presence of Jagath Perera, CA Sri Lanka President, Manil Jayesinghe, CA Sri Lanka Vice President, Harsha Basnayake, Ernst & Young Asia Pacific Transaction Advisory Managing Partner, Aruni Rajakarier, Chairperson of the CA Sri Lanka Women Empowerment Committee, Anoji De Silva, Alternate Chair of the Women Empowerment Committee and Dulani Fernando, CA Sri Lanka CEO

Feb 27, 2012 (LBO) – Loans to business from Sri Lanka’s commercial banks rose 34.5 percent to 2,005.9 billion rupees in the year to December 2011, with credit to the state hitting a new monthly high, official data showed. Credit to business in December remained at a high 60.2 billion rupees in December 2011, slightly lower than the 63.2 billion rupees in November but state credit hit a new high of 52.9 billion rupees up from 32.1 billion rupees a month earlier.

Combined credit to both the state and private citizens and business hit a new high of 111.50 billion rupees in the month, up from a previous high of 95.3 billion rupees in November, Central Bank data showed.

In the year to December credit to state enterprises rose 57 billion rupees, up 37 percent to 198.5 billion rupees.

Credit to state enterprises fell in the first quarter with good rains which improved finances of state-run electricity board. From May credit to state enterprises rose 77.8 billion rupees.

Credit to the central government rose 206.4 billion rupees to 833.6 billion rupees up 32.9 percent from a year earlier.

Credit to the state from the banking