### Private Sector Borrowing Hits Record Rs. 262 Bn 📈

Sri Lanka's private sector credit surged to its highest monthly level in 2025 during November, just before the impact of Cyclone Ditwah. The banking sector remains the primary driver of this liquidity expansion. • Overall Credit Figures Private sector borrowings: Rs. 262.6 Bn in Nov (up from Rs. 246.1 Bn in Oct). Total private debt stock: Rs. 10 Trillion (up 26% YoY). Domestic bank credit: Rs. 9.43 Trillion (up 27.9% YoY). • Public Sector & Interest Rates Public corporation debt: Down 11.3% YoY to Rs. 584.8 Bn. Government credit: Rs. 8.11 Trillion (marginal 0.1% YoY increase). Policy rates: CBSL maintained the Overnight Policy Rate at 7.75% in late November. • Post-Disaster Relief & Outlook Cyclone Ditwah impact: CBSL expects a brief inflation spike to ~3%, though IMF projections suggest it could exceed the 5% target. Debt relief: Banks directed to offer 3–6 month repayment holidays and waive penal fees for affected borrowers. Recovery loans: A 3% interest concessionary scheme is being rolled out for MSMEs, with mandatory registration to formalize small businesses and the informal sector. • Strategic Focus The government is prioritizing the rapid disbursement of credit to ensure stability in the agriculture and manufacturing sectors following widespread disruptions.