Sri Lanka recorded an increase of 10,934 new active credit cards in June, reflecting renewed consumer confidence amid the country’s economic recovery and declining interest rates, according to Central Bank data.
The total number of active credit cards rose to 2,075,744 by the end of June, compared to 2,064,810 in May — a month-on-month growth of 0.52%. Over the first half of 2025, active cards have climbed 3.36%.
In 2024, active credit cards expanded by 4.8% (91,371 cards), supported by stronger-than-expected economic growth and aggressive promotional campaigns by banks, many of which partnered with supermarkets and retail vendors to drive usage.
Analysts note that falling interest rates, coupled with improved economic stability, have encouraged consumers to increase credit card transactions. They also point out that some users who canceled their cards last year — discouraged by high penalty rates — have now returned to active usage.
In contrast, 2023 saw a 1.8% drop (39,991 cards) in active credit cards, following the country’s bankruptcy declaration in 2022 and record-high policy interest rates. The Central Bank’s sharp hikes in April 2022, aimed at curbing hyperinflation, significantly reduced consumer credit activity.
Since then, inflation has eased steadily, even moving into deflation in September 2024, as the Central Bank has cut policy rates eight times since June 2023.
