ECONOMYNEXT – New active credit cards in Sri Lanka rose by 8,665 in November last year, the latest Central Bank data showed, with promotions by banks for credit cards with the key fast moving consumer goods (FMCG) vendors amid falling interest rates.
The number of active credit cards recorded 1,951,654 by end November, compared to 1,942,989 by end October, showing an increase of 8,665.
The number of monthly new active credit cards stood at 6,653 in October and 7,958 in September.
Analysts said most banks have tied up with super markets and other vendors to promote credit cards in the falling interest rate regime.
The number of active credit cards has risen by 1.8 percent or 34,569 in the first 11 months of 2024 from 1,917,085 by the end of last year, the official data showed.
Analysts said Sri Lanka’s economic recovery and stability have helped customers to use more credit cards than last year. The island nation has recorded nearly four-fold increase in foreign currency outflow to $675 million due to locals going on more foreign visits in the first 11 months of last year.
Active credit cards in Sri Lanka have fallen over 2 percent or 39,991 in the first 11 months of 2023. The number of active credit cards fell to 1,913,000 by the end November 2023 from 1,952,991 by the end of 2022, the central bank data showed.
Some analysts said higher interest (penalty) rates on credit cards also had prompted some users to cancel their cards in 2023 and the same customers might be actively using the cards now.
The central bank spiked the interest rates sharply in April 2022 to fight against a hyperinflation. However, the inflation has now slowed to a deflation since August last year. The central bank has reduced its key policy rates seven times since June 2023. (Colombo/January 06/2025)
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