Private Sector Credit Growth hits six-month low in June
By Paneetha Ameresekere
Private sector credit growth, from borrowings made from the country’s commercial banking sector, dropped to a six-month low in June, according to Central Bank of Sri Lanka (CBSL) official records released on Friday (24), due to uncertainty, market sources told this reporter.
Further, due to this uncertainty, June also saw private sector credit growth decelerating for the second consecutive month, records showed.
Private sector credit grew by 4.3 per cent year-on-year (YoY) last month, equal to a similar sluggish growth witnessed in December 2019. In the interim period, private sector credit grew by 4.5 per cent YoY in January 2020, 4.8 per cent in February, 6.5 per cent in March, 7.6 per cent in April, before decelerating to 6.4 per cent in May, whilst further decelerating to 4.3 per cent last month, records further showed. The private sector is regarded as the engine of economic growth.