First Capital (FC) anticipates that bank lending rates will remain within the 9-11% range for the rest of 2024 and rise slightly to 10-12% by mid-2025. This projection comes amidst slow economic conditions, weak demand for credit, and a lag in the reduction of new loan rates. The Average Weighted Prime Lending Rate (AWPLR) dropped
Sri Lanka’s private sector credit expanded by Rs. 60 billion in July 2024, following a Rs. 74 billion rise in June, according to official data. Meanwhile, credit to state-owned enterprises (SOEs) decreased during the same period. In July, banks extended Rs. 82.7 billion in loans to the government, with much of this being interest roll-overs,
Sri Lanka’s foreign exchange reserves experienced a marginal decline, reaching $5.649 billion in July 2024, down from $5.654 billion in June, according to official data. In June, the central bank sold approximately $57 million in the interbank market following a surge in liquidity from strong dollar purchases and an increase in private credit. Data for
Sri Lanka’s private sector credit saw a notable expansion of 146 billion rupees during the first half of 2024, according to official data. This growth contrasts with a reduction in credit extended to the government, although government credit continued to surpass private sector lending. In the six months leading up to June 2024, commercial bank