Sri Lanka pawning loans grew 11-pct to Rs237bn by Sept 2020: Minister Cabraal

ECONOMYNEXT- Sri Lanka pawning (gold-backed loans) credit from the banking system had grown by 27 billion rupees to 237 billion rupees in the nine months to September 2020, State Minister Ajith Nivard Cabraal said.

“When I checked with the Central Bank, they clearly said to me by end of December 2019 pawning advances given by all banks and financial institutions were 210 billion rupees and by the end of September 2020, that value has increased to 237 billion rupees,” Cabraal told parliament.

“So only 27 billion rupees have increased.”

He was responding to a statement by opposition member Kabir Hashim, who claimed that pawning loans had risen to 643 billion rupees.

Hashim also said credit card loans of 15.8 billion rupees had not been paid back.

Cabraal said total credit card loan stock had fallen from 131 billion rupees by end December 2019 to 126 billion rupees by end September 2020.

“This means credit card loans had fallen by 5 billion rupees,” he said. (Colombo/Nov12/2020-sb)

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