The amount of loans obtained by mortgaging gold jewellery from commercial banks has increased by approximately Rs. 35,145 crore, according to Central Bank of Sri Lanka reports, Professor Wasantha Athukorala of the Department of Economics and Statistics at the University of Peradeniya said. Sri Lanka Latest News
He pointed out that this represents an increase of approximately 54 per cent. Professor Athukorala said Central Bank reports indicate that the amount of loans obtained by pledging gold jewellery with commercial banks, which stood at Rs. 66,000 crore in 2024, had increased to Rs. 101,100 crore by March this year.
Professor Wasantha Athukorala further stated that the economic inflation prevailing in the country and the need to find money for day-to-day expenses have been the main reasons for the increase in the pledging of gold jewellery.
Meanwhile, reports from financial institutions indicate that more than 60 per cent of households in the country have become households without gold jewellery due to the pledging or sale of gold jewellery. The reports also state that a large number of Sri Lankans have been compelled to sell or pawn their gold jewellery due to economic inflation and the high cost of living, while gold pawning increased to Rs. 35,600 crore during the period of the economic crisis.
Although the Central Bank or official government statistical documents have not published specific figures on the amount of gold sold in Sri Lanka, the reports indicate that the record-high gold prices in the country amid changes in global markets and fluctuations in the value of the rupee have also been another factor that encouraged people to sell their gold.
Meanwhile, a survey has also revealed that nearly one million vehicles of various types have been sold to various parties amid economic inflation. Economic analysts further observe that these financial behaviours taking place at the household level under the prevailing economic conditions directly affect the country’s macroeconomic policies.
