Credit card spend records highest growth in December 2025

The outstanding balance of credit cards issued by licensed commercial banks increased by Rs. 4,897.0 million in December 2025, marking the highest monthly rise of the year as cardholders ramped up spending during the festive season.

This represents a significant acceleration from the Rs. 3,905.0 million growth recorded in November. With the inclusion of December’s data, Sri Lanka closed 2025 with Rs. 17.76 billion in credit card debt.

Banks also issued 21,984 new cards in December—the highest for any single month—bringing the total number of cards issued for the full year to 157,730.

Despite this growth, credit card interest rates remain elevated, ranging from 24 to 26 percent on outstanding balances. A correction in these rates is long overdue.

The Central Bank has maintained a non-interventionist stance, declining to bring card interest rates in line with other lending rates in the economy.

Furthermore, despite assurances, credit conditions remain tight in certain areas, particularly regarding borrowing for small and medium enterprises (SMEs). It appears that the majority of credit remains concentrated within a few sectors, primarily established medium-to-large-scale corporates and salaried individuals.