📈 Private Sector Credit Hits 8-Year High of Rs. 10.2 Trillion in 2025

Total outstanding private sector borrowings surged by 25.2% YoY to reach Rs. 10,212 Bn in 2025, marking a significant peak in credit expansion. • Credit Breakdown Domestic Banking Units: Rose 27.4% to Rs. 9,630 Bn. Overseas Banking Units: Declined 2.4% to Rs. 581.8 Bn. December Monthly Trend: Borrowings hit a 7-month low of Rs. 182.80 Bn post-Ditwah, following a record peak of Rs. 262.6 Bn in November. • Government & SOE Lending Net Credit to Government: Remained largely flat, up 0.2% to Rs. 8,285.2 Bn. Public Corporations & SOEs: Credit fell sharply by 20.9% to Rs. 520 Bn, indicating reduced reliance on the banking sector. • Economic Outlook & Indicators GDP Forecast: CBSL projects 4-5% growth in 2026, driven by private credit and easing financial conditions. Inflation: CCPI remained steady at 2.1% in Dec 2025; projected to converge to the 5% target by H2 2026. Market Liquidity: CBSL recorded net FX purchases of US$ 1.99 Bn in 2025, injecting Rs. 788.9 Bn in rupee liquidity. • Growth Drivers Expanding activity in vehicle imports and post-cyclone rebuilding are expected to sustain the current momentum in private sector credit.