Credit card usage sees gradual recovery after price and rate shocks

But the number of active credit cards decline by over 35,000 during first 8 months of the year 

Credit card users were seen gradually swiping their cards, perhaps in a sign of slow pickup in consumer spending after the inflation eased, but others appear to have been dipping back into their cards after their household incomes were nowhere near adequate to meet their needs after the price shock last year. 
The total outstanding credit card balance, a distant proxy for overall consumer spending, rose by Rs.1,435.00 million in August to Rs.144.47 billion. 

In the first eight months, the outstanding card balance rose by a modest Rs.1,372.00 million as rates rose through the roof and some banks imposed limits on card use to prevent large scale card related delinquencies while consumers pulled back on their purchases on the back of the runaway prices. 

Even though consumer prices slowed to 1.3 percent in the year through September, that reflects only the annual increase in the prices from a year ago. But the prices which rose multifold last year due to the currency shock, commodities shortages and taxes haven’t returned to their pre-crisis levels. 
Meaningfully beating inflation and preserving pre-crisis consumer habits and living standards require household incomes to outpace the increase in prices that has already occurred.

Until that happens the consumer spending made via cards, through online or cash won’t recover meaningfully. 
Meanwhile, the number of active cards decreased by 2,435 in August, contributing to a total drop of 35,655 during the first eight months. Analysts attribute this decline to a significant migration within the professional categories and the cancellation of cards by individuals severely affected by the economic crisis. For them, carrying a card has become less meaningful due to the persistently high rates that hinder their ability to engage in spending.
By the end of August, Sri Lanka in total had 1,917,336 cards compared to 1,952,991 cards at the start of the year.