According to a senior official from the Central Bank, the recent decline in private sector credit growth will still adequately support the economic advancement of Sri Lanka. As of August, the year-on-year growth in private sector credit fell to 24.5 percent, down from 30 percent observed a few months prior, a change attributed to the monetary policy adjustments implemented by the Central Bank in May.
Despite this deceleration, the Central Bank remains optimistic about the current levels of credit growth. L R C Pathberiya, who leads the Economic Research Department at the Central Bank, expressed confidence during a recent press briefing, stating, “Although the credit growth from commercial banks to the private sector has decreased, we are confident it will still foster economic growth.”
Additionally, Sri Lanka’s economic growth rate has slowed to 4.2 percent year-on-year, marking the lowest rate in over two and a half years. Pathberiya noted that this slowdown can primarily be attributed to issues arising from the Middle East.
Submit Your Press Release
Get your company news, announcements, launches, appointments and events in front of a wider audience.
The government has projected an economic growth rate of 5 percent for the current year, following a 4.7 percent expansion in the first half of the year. (Colombo/September 30/2026)
