📈 Sri Lanka Private Sector Credit Growth Moderates to Rs. 101 Bn in April

Private sector borrowing from the banking system slowed down in April 2026, recording its third-lowest monthly expansion in the past 12 months following a sharp surge in March, according to recent CBSL data. • Overall Figures: Total outstanding private sector credit rose by Rs. 100.6 billion month-on-month (M-o-M) to Rs. 10.8 trillion, a 0.9% M-o-M increase. On a year-on-year (YoY) basis, private credit expanded by 27% (down slightly from 27.1% in March). • Banking Sector Breakdown: - Domestic Banking Units (DBUs): Accounted for the bulk of credit, increasing by Rs. 97 billion (1% M-o-M) to Rs. 10.24 trillion. YoY growth eased to 29.1%. - Offshore Banking Units (OBUs): Rose by Rs. 3.4 billion (0.6% M-o-M) to Rs. 559.6 billion, but contracted by 2.2% YoY. • Public Sector & Money Supply: - Net Government Credit: Increased by Rs. 20.5 billion M-o-M to Rs. 8.15 trillion, but remains in an annual contraction of 2.7% YoY. - State-Owned Enterprises (SOEs): Outstanding credit to public corporations edged up by Rs. 2.2 billion M-o-M to Rs. 413.5 billion, continuing a sharp YoY contraction of 31.6%. - Broad Money (M2b): Expanded by 11.6% YoY in April.