Private sector credit improved by Rs 478.0 billion in March 2022 sustaining the positive growth momentum for the 20th consecutive month, First Capital Research said.
State Credit reflected a net borrowing of Rs 759.6 billion, the report added. “Foreign Reserves improved to USD 1.9 billion in May 2022 relative to USD 1.8 billion in April 2022 over deferment of payments to India under an Asian Clearing Union.
The YoY inflation increased to 39 1 % in May 2022. YoY inflation of the food group has increased to 57.4 % in May 2022 from 46.6% in April 2022 while the non food group increased to 30.6% from 22.0% in April 2022.
The CBSL, the Sri Lanka Customs, and the Ministry of Trade, along with other agencies, are taking measures to clear the imported goods that are being held at the Customs, thereby minimizing costs to traders while releasing stocks to the market as a matter of priority. The CBSL is in a continuous dialogue with the banking community in order to ensure the facilitation of essential goods imports.
Following the restrictions imposed on payment terms and the introduction of the exchange rate determination mechanism, there has been significant moderation of activity in the grey market. This has resulted in foreign exchange inflows routing through to the banking system, thereby increasing foreign exchange liquidity conditions in the banking system.
The CBSL has commenced negotiations with trade association and other parties who are engaged in importing essential goods.
Accordingly, a preliminary assessment is being carried out, with the participation of several govt. authorities to identify the availability of stocks of essential goods at present and the monthly requirement of the same in the ensuing period. Based on such findings, an arrangement would be put in place to ensure imports of essential goods in required quantities and frequency, along with the existing arrangement agreed by the Government of India to utilise the existing line of credit to import essential goods.