FINANCIAL CHRONICLE – The Central Bank of Sri Lanka reported an increase of 22,473 active credit cards in March 2023, reflecting signs of economic recovery and a decrease in interest rates.
By the end of March, the total number of active credit cards reached 2,215,853, up from 2,193,380 in February, representing a monthly growth of 1%. Over the first quarter of 2023, this figure has risen by 2.3 percent.
In 2025, active credit cards surged by 7.8% (157,730 cards), following a 4.8% (91,371 cards) increase in 2024. This growth is attributed to the nation’s economic resurgence and aggressive promotional strategies by credit card issuers, which have capitalized on the lower interest rate environment.
Financial analysts have observed that many banks have partnered with supermarkets and various retailers to enhance credit card promotion in light of the favorable interest rates, as the economy has rebounded more robustly than anticipated.
The ongoing recovery and stabilization of Sri Lanka’s economy have encouraged consumers to utilize credit more frequently since 2023. However, some experts predict a potential decline in credit card usage as the nation has recently experienced an economic slowdown due to fuel rationing implemented in March.
Some analysts have pointed out that increased penalty rates on credit cards led certain users to cancel their accounts following the economic crisis. However, those same individuals may now be re-engaging with credit cards as interest rates have fallen.
In 2023, active credit cards saw a decrease of 1.8% (39,991 cards) after the country declared bankruptcy in 2022, which was accompanied by a significant rise in the Central Bank’s monetary policy rates. The Central Bank had sharply raised interest rates in April 2022 to combat rampant inflation.
Since then, inflation rates have moderated, transitioning into deflation in September 2024, before registering positive growth in August of the following year, coinciding with the Central Bank’s decision to reduce key policy rates eight times since June 2023.
Market analysts are anticipating a tightening of policy in the near future due to the recent depreciation of the rupee and rising inflation as a result of increased fuel prices. (Colombo/May 20/2026)
