Inflation ( CCPI)1.5% (Oct 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate15.29%
12M T-Bill Rate12.94%
2Y T-Bond Rate14.45%/ 14.50%
4Y T-Bond Rate14.70% / 14.80%
USD/LKR327/328
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

Banks’ net credit to the Private sector continues to contract

Bank & FinanceJan 13, 2023
Banks’ net credit to the Private sector continues to contract

Weak liquidity, high-interest rates, rising non-performing loan (NPL) ratio, and economic slow-down continue to discourage credit to the private sector for the sixth consecutive month. But the credit to the government by banks continues to grow, crowing out the credit to the private sector.

Contraction of the bank’s loan book pushes the banking industry vulnerable. Which intern negative for economic growth as the current economy is based on credits.

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