ECONOMYNEXT – New active credit cards in Sri Lanka increased by 7,958 in September this year, the central bank data showed, with local banks promoting along with the key fast moving consumer goods (FMCG) venders amid falling interest rates.
The number of active credit card recorded 1,936,336 by end September, compared to 1,028,378 in August this year, showing an increase of 7,958.
“Most banks have been aggressively pushing for credit cards in September in the falling interest rate regime. This is why you can see many offers for credit cards in populour FMCG outlets,” a currency dealer said
The number of active credit cards has risen 1 percent or 19,251 in the first nine months 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.
Active credit cards in Sri Lanka have fell nearly 2 percent or 37,432 in the first nine months of the last year. The number of active credit cards fell to 1,915,559 by the end September 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 the last year 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 after the central bank reduced its key policy rates seven times since June 2023. (Colombo/November 27/2024)
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