Lankan credit card holders increased their spending in August, signaling growing consumer confidence and rising household incomes amid an expanding economy.
Credit card debt rose sharply by Rs. 2.89 billion during the month, up from Rs. 373 million in July, as overall private sector credit continued its upward trend.
In June, total outstanding credit to the private sector by licensed commercial banks rose by Rs. 221.6 billion, followed by two consecutive months of over Rs. 200 billion in new credit in July and August.
With the surge in credit card debt in August, total outstanding credit card debt reached Rs. 164.17 billion, expanding by Rs. 6.21 billion by month-end. The increase in spending occurred despite credit card interest rates remaining around 26 percent per annum, significantly higher than other lending rates. The rise may also reflect consumers gradually returning to discretionary spending on recreation, dining, and leisure activities.
However, the growth in credit card spending does not fully reflect overall consumer behaviour, as the number of active cards in Sri Lanka remains limited, though steadily increasing.
In August, there were 2,102,537 active credit cards, up from 2,088,069 in July, with 14,468 new cards issued. In the first eight months of 2025, licensed commercial banks issued a total of 94,081 new credit cards.
