FINANCIAL CHRONICLE – According to data from the Central Bank, the growth of new active credit cards in Sri Lanka experienced a decline in April compared to the previous month. This slowdown comes amid increasing uncertainty stemming from heightened tensions in the Middle East and ongoing fuel rationing.
In April, the number of newly active credit cards rose by 12,999, a significant decrease from the 22,473 added in March. By the end of April, the total count of active credit cards reached 2,228,852, up from 2,215,853 at the end of March, indicating a modest monthly growth of 0.6%. Over the first four months of this year, there has been a 2.9 percent increase in active cards.
In 2025, active credit cards saw a notable rise of 7.8% (157,730 cards), following a 4.8% (91,371 cards) increase in 2024. This upward trend is attributed to the economic recovery of the nation and aggressive credit card marketing strategies that coincided with declining interest rates.
Market analysts have pointed out that many banks have collaborated with supermarkets and other retailers to promote credit card usage, capitalizing on the favorable interest rate environment as the country’s economy shows signs of unexpected recovery.
However, experts caution that the growth in active cards may face challenges after the Central Bank shifted its monetary policy stance in May, increasing the benchmark interest rate by 100 basis points. With the implementation of tighter monetary policies and fuel rationing measures since March, consumer spending is likely to decrease compared to previous levels, according to analysts.
Since 2023, the economic recovery and improved stability in Sri Lanka have encouraged customers to utilize credit more frequently. Some analysts have observed that increased penalty rates on credit cards led to cancellations among users during the economic crisis; however, these same individuals may now be re-engaging with credit cards due to lower rates.
With the Central Bank’s recent hike in policy rates, experts predict a slowdown in the issuance of new active credit cards, particularly in light of anticipated rises in penalty rates. In 2023, the number of active credit cards dropped by 1.8% (39,991 cards) following the country’s declaration of bankruptcy in 2022, which was accompanied by sharp increases in the Central Bank’s policy rates.
In April 2022, the Central Bank implemented significant interest rate hikes to combat hyperinflation. The inflation rate subsequently decreased to deflation in September 2024, before turning positive in August of the previous year, thanks to a series of eight rate reductions initiated in June 2023. The market is now bracing for a potential tightening of monetary policy due to recent rupee depreciation and rising inflation linked to fuel price increases. (Colombo/June 08/2026)
