Credit to Private sector continue to fall for the seventh month in a raw

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High-interest rates, rising NPL, and lower credit demand pulled credit to private sector down for the seventh consecutive month. It is detrimental to a credit-driven economy. CBSL seems to continue with tight monetary policy for the next few months.

CBSL expects the excess cash generated from lower credit to the private sector would ultimately invest in T-Bills, which will reduce the money printing. But banks continue to lend to the government at much higher phase.