Sri Lanka credit growth reflects economic recovery
- CNL Reporter
- March 28, 2025
- Banking and Financial
- Sri Lanka
- 0 Comments
Sri Lanka’s steady credit growth has been reflecting the country’s economic recovery, Central Bank Governor Nandalal Weerasinghe said.
The credit growth measured in percentage which was negative in January has turned to positive in February and higher than the same month in 2024, the Central Bank data showed.Weerasinghe said the January fall was due to seasonal effects.
“Every year December, there’s a sharp increase in credit as usual. The seasonal effect is for…business, people get loans for credit. And then January is a settlement month, and then February coming back to normal trends,” he told reporters at a media briefing on Wednesday (26).
“So we can see the trend is almost the same as a continuous, consistent trend as well as a seasonal change.”The country’s credit growth was in negative after the island nation declared sovereign debt default in 2022 with the economic growth contracted.
However, Sri Lanka has seen a turnaround and positive growth since the third quarter of 2023 and the economy recorded 5 percent growth last year.
