📈 Sri Lanka Private Sector Borrowing Hits Record High in Oct 2025

• Private sector borrowings surged to a record Rs. 246.10 billion in October 2025, the highest monthly figure this year. • Total outstanding private sector credit reached Rs. 9.76 trillion, marking a significant 24.1% year-on-year (YoY) increase. • Domestic banking sector credit to the private sector amounted to Rs. 247.7 billion in October, contributing to a 25.8% YoY growth in outstanding debt from local banks over 10 months. • Government credit outstanding grew 2.8% YoY to Rs. 8.2 trillion by end-October. • Credit to public corporations declined 12% YoY to Rs. 587 billion. • The Central Bank of Sri Lanka (CBSL) maintained policy rates at 7.75% in November 2025, prior to Cyclone Ditwah. • Post-Ditwah, CBSL expects a brief inflation increase to ~3% due to supply chain disruptions, anticipating a return to normal once bottlenecks clear. • CBSL has introduced measures to support Ditwah-affected businesses and households: • Debt relief (3-6 month suspension of capital/interest repayments). • New loans with capped interest rates. • Waiver of penal charges until end-January 2026. • Easing of credit access by not automatically rejecting based on adverse CRIB records. • Affected borrowers must request relief by January 15, 2026.