Sri Lanka’s private sector credit growth picks up in December

Jan 30, 2020 (LBO) – Growth of credit extended to the private sector has picked up in December 2019, on a year-on-year basis, following a continued slowdown since December 2018.

Driven by domestic credit expansion, broad money growth (year-on-year) also picked up in December 2019, the Central Bank data showed.

However, the absolute expansion in credit extended to both private and public sectors remained modest during 2019, compared to that of 2018.

Going forward, the growth of money and credit aggregates is expected to accelerate with the envisaged continued decline in lending rates, expected expansion in economic activity supported by fiscal stimulus, announced credit support package for SMEs and improved investor sentiment, the Central Bank said.