Banks give Rs.227bn in fresh credit in August

Credit to the private sector soared in August at the fastest pace the country has ever seen as the lower interest rates and a solid economic expansion are pulling a lot more credit to power the consumption and investments in the country.

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According to the latest data available, licensed commercial banks in Sri Lanka expanded their total outstanding credit to the private sector by a mammoth Rs. 226.8 billion in August, the most for any month in any year.

The August expansion in the private sector credit brought the total credit extended in the first 10-months of the year to a huge Rs. 1,128 billion.

This translated into a robust 20.5 percent growth from a year ago.

Growth in the private sector credit by the banking sector is a close barometer for the ongoing health of the economy, the business and the household sentiments and also the willingness by the banks to lend.