Hon. Ravi Karunanayake

¶ 01 QUESTION BY PRIVATE NOTICE: EXPANSION OF CREDIT ISSUED BY LICENSED COMMERCIAL BANKS AND NON-BANKING FINANCIAL INSTITUTIONS FROM 2023-2025

¶ 02 Hon. Speaker, under your leave and Standing Order 27(2), I raise this Question regarding the notable growth in private sector credit through licensed commercial banks and non-banking financial institutions, and the lack of clear, disaggregated data on key consumer credit categories. According to Central Bank publications, in 2024 credit to the private sector by licensed commercial banks increased by Rs. 789.6 billion, while non-banking financial institutions expanded credit by over Rs. 277 billion. There is credit creation adding to existing loan capacity. However, detailed, disaggregated data on gold-backed pawning loans, vehicle leasing, and credit card-related credit have not been published. This Question is also relevant to the matters I raised in Parliament on 03rd December. These credit categories directly affect household indebtedness and consumer spending patterns and, in aggregate, financial stability. Therefore, full and transparent data to Parliament is essential for assessing systemic risks and policy implications. Accordingly, I seek the following: 1. What was the private sector credit expansion by licensed commercial banks in 2023, 2024 and 2025? Provide annual growth in rupees and percentages. 2. For the same three years, what was the total credit extended by the non-banking sector — finance companies and leasing companies? 3. What is the total value of gold pawning/gold-backed loans extended by banks and NBFIs in 2023, 2024 and 2025, and how has it evolved over time? 4. What is the total value of vehicle leasing and hire purchase loans in 2023, 2024 and 2025? If possible, break down by banks and NBFIs. 5. What are the credit card outstanding balances and the total value of card-related credit in 2023, 2024 and 2025? Sir, the essence is this: hire purchase, leasing, credit cards and pawning together account for roughly Rs. 243–300 billion of incremental credit creation. I ask how this affects development. 6. For the three categories — gold pawning, vehicle leasing and credit cards — what were the year-on-year increases between 2023-2024 and 2024-2025, in rupees and percentages? 7. For these categories, what were the non-performing loan ratios, impairment levels and provisioning requirements in 2023, 2024 and 2025? 8. In 2025, what was the combined contribution of pawning, vehicle leasing and credit cards to private sector credit growth, in rupees and as a percentage? 9. Have the Central Bank identified any deterioration in credit quality or emerging risks in these categories? If so, what regulatory or supervisory measures have been taken? 10. Will the Government or the Central Bank publish a standardized, disaggregated dataset for Parliamentary oversight and transparency? Thank you, Hon. Speaker.