Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe yesterday said the rapid private sector credit expansion has been broad-based across the economy rather than concentrated in a few sectors, while expressing confidence that the monetary tightening introduced in May will gradually moderate lending and demand pressures.
‘A strong credit growth has been recorded in construction, wholesale and retail trade, financial services, and consumer-related lending, reflecting the broader economic recovery,’ he said addressing the post-Monetary Policy Review media briefing.
Based on outstanding credit as of May, he said industry accounted for around 37% of total private sector credit, followed by services at 30.5%, personal loans and advances at 24%, and agriculture and fisheries at around 9%.
He noted that the June sectoral credit data will be released shortly.
Dr. Weerasinghe said the CBSL expects the strong pace of lending to ease over the coming months, as the impact of the 100-basis-point policy rate hike in May, together with other policy measures implemented by the Government and the CBSL, gradually feeds through to the real economy.
‘The monetary policy tightening in May 2026 and its gradual transmission to the real economy are expected to moderate credit growth and the buildup of demand pressures going forward,’ he said.
Private sector credit expanded by 27.8% year-on-year during the first five months of 2026, equivalent to an increase of Rs. 824 billion.
Total outstanding banking sector credit to the private sector rose to a record Rs. 11.04 trillion in May from Rs. 10.8 trillion in April, representing a 2.2% month-on-month increase (https://www.ft.lk/front-page/Private-sector-credit-rebounds-in-May–surpasses-Rs–11-t/44-794580).