Credit to GoSL, Corps, overtake Pvt. Sector

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Rupee or domestic credit by Sri Lanka’s banking and monetary sectors, to the Government of Sri Lanka (GoSL) and to public corporations, continued to overshadow credit to the private sector for the tenth consecutive month to May2022, a phenomenon last seen 33 years ago in 1989, Central Bank of Sri Lanka (CBSL) data of Friday’s (1 July) showed.

In this connection, domestic credit to the GoSL together with public corporations amounted to Rs 8,249.1 billion in May 2022; while credit to the private sector lagged behind at Rs 7,754.5 billion, showing that the gap between credit to GoSL and to its corporations vis-a-vis credit to the private sector amounted to Rs 494.7 billion in May 2022. In the previous month April 2022, credit to the GoSL and to public corporations in total amounted to Rs 8,273.5 billion; while credit to the private sector amounted to Rs 7,752.5 billion, showing a gap between credit to GoSL and to its corporations vis-a-vis credit to the private sector, of Rs 520.6 billion.

And, in March 2022, credit to the GoSL and to public corporations in total amounted to  Rs 8,090.7 billion;, while credit to the private sector amounted to Rs 7,529 billion, showing a gap between credit to GoSL and to its corporations vis-a-vis credit to the private sector, of Rs 561.7 billion.

In related developments, in February 2022, the comparative figures of credit to GoSL and its allied corporations amounted to Rs 7,331 billion, while credit to the private sector amounted to a mere Rs 7,051 billion that month, the former being more by Rs 280 billion over the latter.

And in the previous month January 2022, credit to the GoSL and to public corporations amounted to Rs 7,236 billion, while credit to the private sector amounted to a mere Rs 7,017 billion that month, the former being more by Rs 219 billion over the latter.

Meanwhile, in December 2021, credit to the GoSL and to public corporations amounted to Rs 7,467.9 billion, while credit to the private sector amounted to a mere Rs 6,981.4 billion, the former being more by Rs 486.5 billion over the latter. In November 2021, credit to the GoSL and to public corporations amounted to Rs 7,259 billion and credit to the private sector Rs 6,920.1 billion, an increase of Rs 338.9 billion.

Similarly, in the months of October, September and August 2021 these respective figures were Rs 7,116.8 billion and Rs 6,859.6 billion; Rs 6,915.2 billion and Rs 6,824.6 billion and Rs 6,819 billion and Rs 6,795.5 billion, increases of Rs 257.2 billion, Rs 90.6 billion and Rs 23.5 billion, respectively.  

Previously, such a phenomenon occurred for 10 consecutive months, from January 1989 to October 1989, CBSL data showed.

By Paneetha Ameresekere