Sri Lanka state borrowings surge, crowding out private bank credit

Monday, 01 April 2013 - 12:33



Heavy state borrowings from banks crowded out credit to private business to a 44-month low in January 2013, despite the monetary authority cutting policy rates.

Commercial Banks loaned 9.7 billion rupees to private borrowers, the lowest since May 2010, when 7.2 billion rupees was loaned to business. In the year to January 2013, credit to private borrowers was up 15.5 percent to 2,368.1 billion rupees