Sri Lanka expects credit growth to slow to 16-pct in 2017

ECONOMYNEXT – Sri Lanka is expecting private credit growth to slow to 15-16 percent, acting director of the Central Banks’ economic research department, Chandranath Amarasekera said.

In the 12-months to August, credit growth has slowed to 18.0 percent, from 18.6 percent in June, he said.

Private credit in the first eight months was down in absolute terms.

A total of 404 billion rupees was loaned to the private borrowers in 2017, compared to 456 billion rupees last year

Credit growth was around 20 plus levels seen last year.

This was in line with central bank’s expectations, he said.

State enterprises borrowings were positive at only 7.8 billion rupees, compared to negative levels seen in 2016, Amarasekera said.

Government borrowings rose to 265.4 billion rupees, higher than 212.6 billion rupees. But central bank credit (printed money) has declined by 166.6 billion rupees. (Colombo/Sept26/2017)

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