Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.91%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
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Reserves $1.89Bn (Dec 2022)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

Banks’ net credit to the Private sector continues to contract

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