2026-02-20 / Ministerial Statement: Expansion of credit issued by licensed commercial banks and non-banking financial institutions
Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning
2026-02-20
Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha clarified the composition of private sector credit growth, noting that credit contracted in 2023 before recovering to 10.7% growth in 2024 and 25.2% in 2025. He acknowledged that approximately 25% of 2025 credit growth was attributable to pawning, leasing, and motor vehicles, but argued that a significant portion of motor vehicle credit reflected long-delayed commercial vehicle purchases with genuine economic impact. He emphasized that roughly 75% of credit growth benefited SMEs and other business sectors, presenting this as consistent with broader macroeconomic growth achieved in 2025 and expressing the government's intention to sustain this trajectory.
Hon. Speaker, this requires some clarification. From a constrained situation, we achieved notable growth in 2025. As I presented, overall private sector credit contracted in 2023, grew by 10.7% in 2024 and 25.2% in 2025. About 25% of the 2025 growth related to pawning, leasing and motor vehicles. However, a significant share of motor vehicles were long-delayed commercial vehicles for goods transportation, which has real economic impact. Even after excluding such categories, approximately 75% of credit growth was to SMEs and other business sectors. Interpreted alongside macro data, this supports the growth realized in 2025. Our aim is to sustain strong growth going forward.