Sri Lanka, Oct. 5 -- Sri Lanka's licensed finance companies more than doubled their borrowings to over Rs.1 trillion in the 12 months to end-June 2026, turning to wholesale funding as deposit mobilisation failed to keep pace with an almost 48 percent expansion in a loan book dominated by vehicle financing and gold-backed lending, the latest Central Bank data showed.
The sector's borrowings climbed 124 percent to Rs.1,057.3 billion from Rs.472.1 billion a year earlier, an increase of Rs.585.2 billion that was more than twice the Rs.267.2 billion added in deposits, which grew 22.9 percent to Rs.1,433.1 billion.
Reflecting this shift in the funding mix, borrowings now finance 32.9 percent of the sector's assets, when compared to 20.7 percent...