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Sri Lanka CB says widening credit gap needs close monitoring though “not major concern”

ECONOMYNEXT – Sri Lanka’s widening credit gap in the private sector “signals potential systemic risks that require close monitoring, the country’s Central Bank said in its 2025 Financial Stability Review. The private sector credit has grown significantly amid a strong economic recovery after the 2022 unprecedented debt crisis with sovereign debt default. Central Bank Governor Nandalal Weerasinghe said there is no concern over the private sector credit growth, given the decline in public sector credit has led to increase in higher loans for the corporate sector. “There are some indicators to see whether these credit levels are sustainable or there…

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