Credit to govt from banks increased by Rs.157 billion in Nov. 2024

Net credit to the government from the banking system increased by Rs. 157.2 bn in November 2024, according to the Weekly Economic Indicators report of the Central Bank of Sri Lanka.

Outstanding credit to public corporations decreased by Rs. 7.2 bn in November 2024. Outstanding credit extended to the private sector increased by Rs. 96.6 bn in November 2024 recording a year-on-year growth of 9.7 percent, the report stated.

Meanwhile, broad money expanded by 9.0 per cent, on a year-on-year basis, in November 2024.

The following are some of the economic indicators as per the above report.

Index of Industrial Production (IIP) in November 2024 increased by 4.7 per cent to 93.8 compared to November 2023, mainly contributed by the increases reported in the manufacture of food products (7.4 per cent), wearing apparel (6.5 per cent) and chemical products (18.6 percent).

Between 06th and 10th of January, 2025, crude oil prices showed mixed performance. Prices increased due to winter demand, China’s economic stimulus measures, growing concerns over supply disruptions and tightening sanctions amid low oil stockpiles. However, in the middle of the week, prices declined pressured by a stronger dollar and large builds in US fuel inventories.

Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 10th January 2025 decreased by 16 bps to 8.74 per cent compared to the previous week.

The Average Weighted Call Money Rate (AWCMR) recorded as 8.00 per cent on 10th January 2025 compared to 7.99 per cent at the end of last week.

The reserve money decreased compared to the previous week mainly due to decrease in currency in circulation and deposits held by the commercial banks with the Central Bank.

The total outstanding market liquidity was a surplus of Rs. 130.255 bn 10th January 2025, compared to a surplus of Rs. 140.156 bn by the endof last week.

During the eleven months ending November 2024, government revenue and grants increased to Rs. 3,664.6 bn compared to Rs. 2,771.4 bn in the corresponding period of 2023.

Total expenditure and net lending increased to Rs. 4,881.9 bn from January to November 2024 compared to Rs. 4,791.7 bn in the corresponding period of 2023.

During the period from January to November 2024, overall budget deficit decreased to Rs. 1,217.3 bn compared to Rs. 2,020.3 bn recorded in the corresponding period of 2023.

During the period from January to November 2024, net domestic financing decreased to Rs. 889.5 bn compared to Rs. 1,993.8 bn in the corresponding period of 2023. Net foreign financing increased to Rs. 327.8 bn during eleven months ending November 2024 compared to Rs. 26.4 bn recorded in corresponding period of 2023.

During the year up to 10th January 2025, the Sri Lanka rupee depreciated against the US dollar by 1.0 per cent.

Earnings from tourism amounted to US dollars 362.1 mn in December 2024, compared to US dollars 272.9 mn in November 2024 and US dollars 269.3 mn in December 2023.

Workers’ remittances amounted to US dollars 613.8 mn in December 2024, compared to US dollars 530.1 mn in November 2024 and US dollars 569.7 mn in December 2023.

The gross official reserves were provisionally estimated at US dollars 6,091 mn as at end December 2024. This includes proceeds from the PBOC swap arrangement.