📈 Private Sector Borrowing Falls to Four-Month Low of Rs. 106 Bn in August

Sri Lanka’s private sector borrowing slowed for a second consecutive month in August, with net credit expanding by Rs. 105.7 Bn MoM—a 37% drop from July's Rs. 169.1 Bn and less than half of August 2025's expansion (Rs. 226.8 Bn) (based on provisional data). • Overall Private Credit Performance • Total outstanding credit reached Rs. 11.56 Tn (YoY growth slowed to 24.5% from 26.4% in July). • Offshore Banking Units (OBUs) drove the contraction, falling by Rs. 33.1 Bn MoM to Rs. 557.3 Bn (YoY decline deepened to 6.5%). • Domestic Banking Units (DBUs) credit grew by Rs. 138.7 Bn MoM to Rs. 11 Tn (YoY growth eased to 26.6%). • Government & SOBE Credit Dynamics • Net credit to the Government fell by Rs. 83.2 Bn MoM to Rs. 7.74 Tn, led by a Rs. 114.4 Bn decline in Central Bank (CBSL) net credit. • Commercial bank net lending to the government rose by Rs. 31.2 Bn MoM to Rs. 6.3 Tn. • Credit to public corporations and SOBEs contracted by Rs. 6.2 Bn MoM to Rs. 479.8 Bn (YoY down 22.3%). • Monetary & Foreign Assets Summary • Banking system Net Foreign Assets (NFA) rose by Rs. 109.5 Bn MoM to Rs. 1.67 Tn (YoY growth eased to 67.5%). • Broad money supply (M2b) expanded by Rs. 97 Bn MoM to Rs. 17.14 Tn (YoY growth eased to 11.5%).