Sri Lanka private credit contracts in August, SOE credit down

Sri Lanka’s private credit contracted 58.9 billion rupees in August 2022, falling for the third straight month, while credit to state enterprises also fell, central bank data showed as efforts are made to end a balance of payments crisis triggered by mis-targeted interest rates.

Credit to private sector grew 12 percent to 7,612 billion rupees in the 12 months to August down from 15.2 percent a month earlier.

Credit to state enterprises fell 54.2 billion rupees with the stock growing 49.5 percent to 1,699.8 billion rupees by September 2022, down from 53.7 percent a month earlier.

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