Thursday, December 17, 2009

INTERVIEW-Sri Lanka sees recovery in credit growth-cenbank

By Shihar Aneez
COLOMBO, Dec 11 (Reuters) - Sri Lanka's private sector borrowing is showing signs of recovery that could help to achieve a 3.5 percent economic growth target now that interest rates have come down, a central bank official said on Friday. The island nation's private sector credit growth has recorded negative growth of 5.2 percent in September year-on-year, the latest data from the central bank shows, despite a continuous reduction in policy rates.

"What we see in November and December is banks' lending is picking up," K.D. Ranasinghe, director at the central bank's economic research department, told Reuters in an interview.

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