📈 Sri Lanka Private Sector Credit Growth Slows to Rs. 169 Bn in July

Provisional Central Bank of Sri Lanka (CBSL) data shows net credit to the private sector expanded by Rs. 169.1 billion MoM in July 2026, marking a 31% decline from June’s Rs. 245.3 billion expansion. • Private Sector Borrowing: Total outstanding private credit rose to Rs. 11.45 trillion (up from Rs. 11.28 trillion in June), with YoY growth easing slightly to 26.4% from 27.4%. • Banking Sector Breakdown: Domestic Banking Units (DBUs) drove growth, expanding by Rs. 158 billion MoM to Rs. 10.86 trillion (28.5% YoY). Offshore Banking Units (OBUs) added Rs. 11.2 billion MoM to reach Rs. 590.4 billion (-3% YoY). • Government & State Credit: Net credit to the government from the banking system contracted further by Rs. 165.9 billion MoM to Rs. 7.83 trillion (-8.2% YoY). Outstanding credit to State-Owned Business Enterprises (SOBEs) fell Rs. 23.6 billion MoM to Rs. 486 billion (-19.5% YoY). • External & Domestic Assets: Net foreign assets (NFA) jumped by Rs. 253.3 billion MoM to Rs. 1.52 trillion (+72.8% YoY). Net domestic assets (NDA) fell Rs. 127.8 billion MoM to Rs. 15.53 trillion (+8.4% YoY). • Monetary Aggregates: Broadest money supply (M2b) grew by Rs. 125.5 billion MoM to Rs. 17.04 trillion, accelerating YoY growth to 12.1%. Reserve money expanded by Rs. 5.3 billion MoM to Rs. 1.89 trillion (12.2% YoY).