Private sector borrowing falls to 11-month low in January

NEW private sector borrowing from Sri Lanka's banking sector slowed sharply to Rs. 82.6 billion in January 2026, the lowest level in 11 months, extending the credit slowdown that has emerged in the aftermath of Cyclone Ditwah even as the overall stock of private sector debt continued to expand.

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• New private sector borrowing declines to Rs. 82.6 b as post-Ditwah credit slowdown deepens

• Domestic commercial bank lending falls to nine-month low of Rs. 108 b

• Total private sector debt stock rises 26.3% YoY to Rs. 10.3 t at end-Jan.

• Net credit to Govt. edges down while SOE borrowing contracts

• Data partially contradict CBSL Credit Supply Survey

According to Central Bank of Sri Lanka (CBSL) data released last Friday, new borrowings from domestic commercial banks fell to Rs. 108 billion in January, a nine-month low, reflecting weaker demand for credit, or more cautious banks, following a strong expansion late last year.