Lending Trend

Chandi Dharmaratne

June 22, 2010 (LBO) – Loans to private borrowers from Sri Lanka’s commercial banks grew at a slower rate in April compared with March while foreign currency loans fell, latest Central Bank data shows. Credit to the private sector rose 7.6 billion rupees to 1,242.7 billion rupees in April compared with March, when it had grown by 30 billion rupees, the biggest monthly gain since credit started to grow last September.

Most of the credit, or 9.4 billion rupees, were rupee loans from the domestic banking units of commercial banks which grew to 1,093.7 billion rupees.

Total forex loans outstanding fell 1.8 billion rupees in April to 149 billion rupees.

Loans from domestic banking unit to the state also fell, down 6.8 billion rupees to 444.8 billion rupees.