Due to bank promotions for credit cards with major fast-moving consumer goods (FMCG) vendors and declining interest rates, the number of new active credit cards in Sri Lanka increased by 8,665 in November of last year, according to the most recent Central Bank data.
By the end of November, there were 1,951,654 active credit cards, up 8,665 from the 1,942,989 at the end of October.
In October, there were 6,653 monthly new credit cards that were active, compared to 7,958 in September.
According to analysts, the majority of banks have partnered with super markets and other suppliers to advertise credit cards during the period of declining interest rates.
According to official data, the number of active credit cards increased by 1.8 percent, or 34,569, in the first 11 months of 2024 compared to 1,917,085 at the end of the previous year.
According to analysts, Sri Lanka’s stability and economic recovery have encouraged consumers to use credit cards more frequently than they did the previous year. Due to more residents traveling abroad during the first 11 months of last year, the island nation’s foreign exchange outflow has nearly quadrupled to $675 million.
In the first 11 months of 2023, the number of active credit cards in Sri Lanka decreased by more than 2 percent, or 39,991. According to central bank data, the number of active credit cards decreased from 1,952,991 at the end of 2022 to 1,913,000 by the end of November 2023.
According to some analysts, some consumers may still be using their credit cards today after canceling them in 2023 due to higher interest (penalty) rates.
In order to combat hyperinflation, the central bank raised interest rates significantly in April 2022. But from August of last year, the inflation has now decreased to a deflation. Since June 2023, the central bank has lowered its key policy rates seven times.
