Sri Lanka, Oct. 12 -- Borrowing by Sri Lanka's private sector from the banking system slowed for a second consecutive month in August, with net credit increasing by Rs. 105.7 billion month-on-month (MoM), the smallest rise since April and 37% below July's Rs. 169.1 billion, according to provisional data released by the Central Bank of Sri Lanka (CBSL).

Outstanding private sector credit increased to Rs. 11.56 trillion in August from Rs. 11.45 trillion in July, while year-on-year (YoY) growth moderated to 24.5% from 26.4%.

The August increase was less than half the Rs. 226.8 billion recorded in the corresponding month of 2025. Since June 2025, monthly borrowing increases have ranged from Rs. 83 billion in January to Rs. 263 billion in Nov...