Bank loans to Sri Lanka’s private sector rose by Rs.2.1 trillion in 2025, driven by personal loans, gold pawning and credit card borrowing.
Bank loans granted by licensed commercial banks to Sri Lanka’s private sector increased by approximately Rs.2.1 trillion during 2025.
According to the Annual Economic Review report released by the Central Bank of Sri Lanka, personal loans and advances alone increased by Rs.406 billion during the past year.
This accounted for 22% of the total loans issued to the private sector by commercial banks.
The Central Bank report states that the sharp increase in personal loans was mainly driven by higher borrowing against gold jewellery.
It was also supported by loans obtained for the purchase of durable consumer goods, credit card-related borrowing, and an overall increase in consumer spending.
