HNB Managing Director and Chief Executive Officer Damith Pallewatte has revealed that approximately 70% of Sri Lanka’s banking sector credit expansion has been channelled into productive sectors, reinforcing the industry’s contribution to economic growth and business development.
Speaking at the Sri Lanka Economic Association and Gamani Corea Foundation Economic Forum on Financial Sector Resilience Amidst External Shocks: Managing Policy Challenges for Financial Stability, Pallewatte said recent lending growth had primarily supported businesses rather than consumption.
He noted that total outstanding private sector borrowing from the banking sector reached Rs. 10.2 trillion in 2025, while total outstanding credit exceeded Rs. 11 trillion by the end of May 2026. According to Pallewatte, the composition of credit growth has often been misunderstood, with business lending accounting for the largest share of new advances.
The HNB CEO said stronger lending to productive sectors has helped stimulate investment, strengthen economic activity and support Sri Lanka’s ongoing recovery, highlighting the banking sector’s vital role in building long term economic resilience.
