ECONOMYNEXT – The expansion in new active credit cards in Sri Lanka in April slowed compared to a month ago, Central Bank data showed, amid rising uncertainty following the escalation in the Middle East and fuel rationing.
New active credit cards in April recorded an increase of 12,999, but this slowed from 22,473 in March this year, central bank data showed.
The total number of active credit cards reached 2,228,852 by the end of April, compared to 2,215,853 by the end of March, showing a 0.6% increase for the month.
The number expanded by 2.9 percent in the first four months of this year.
Active credit cards rose 7.8% (157,730) in 2025, following a 4.8% (91,371) rise in 2024. This growth was driven by the island nation’s economic recovery and strong credit card promotions amid falling interest rates.
Analysts have said most banks have tied up with super markets and other vendors to promote credit cards in the falling interest rate regime as the country’s economy has shown more-than-expected recovery
However, they say, the number of active cards may slow down after the Central Bank reversed its dovish monetary policy in May, raising the key rate by 100 basis points. With the tight monetary policy and fuel rationing since March, people may not be spending as much as they spent before that, analysts said.
Sri Lanka’s economic recovery and stability have helped customers to use more credit since 2023.
Some analysts noted that higher interest (penalty) rates on credit cards had prompted some users to cancel their cards after the economic crisis and those same customers might now be actively using the cards due to declining rates.
With the Central Bank’s latest policy rate hike, analysts expect a slowdown in new active credit cards amid an expected increase in the penalty rate.
Active credit cards fell 1.8% (39,991) in 2023 after the country declared bankruptcy in 2022 amid an unprecedented hike in the Central Bank’s monetary policy rates.
The central bank sharply increased interest rates in April 2022 to fight hyperinflation.
However, the inflation slowed to a deflation September 2024 before turning to positive in August last year amid the central bank’s reduction of key policy rates eight times since June 2023.
The market expects policy tightening cycle to begin soon due to rupee depreciation in the recent past and higher inflation following the fuel price hikes. (Colombo/June 08/2026)