Credit to Sri Lanka’s private sector experienced a slowdown in December after maintaining a steady rate of around 200 billion rupees per month, according to a senior official from the Central Bank. This deceleration is observed in the wake of an anticipated reduction in economic activities following the Cyclone Ditwah disaster.
Data indicates that the volume of private credit from commercial banks decreased to 183 billion rupees in December 2025, down from a record high of 262 billion rupees in the previous month. Additionally, the 12-month growth rate for private sector credit declined to 25.2 percent in December, compared to 26 percent in November 2025, as revealed by official statistics.
“We noticed a significant expansion from June onward, with credit increasing by over 200 billion rupees each month, but there was some slowdown in December, as provisional data shows a decrease to 183 billion rupees,” stated S. Jegajeevan, Director of the Central Bank’s Economic Research Department, during a press briefing on Wednesday (28).
While Jegajeevan did not specify the reasons for this slowdown, analysts suggest that it may be attributed to reduced economic activities in December following the disaster in late November. She also noted that the improvement in demand conditions and a substantial rise in vehicle imports contributed to strong private credit demand in the latter half of 2025, with a noticeable deceleration in December.
(Colombo/January 30/2026)
