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ECONOMYNEXT – Energetic bank cards in Sri Lanka have fallen almost 2 % or by 35,655 within the first eight months of this 12 months with analysts citing elevated migration and the shoppers cancelling their bank cards.
The variety of energetic bank cards fell to 1,917,336 by the tip August this 12 months from 1,952,991 by the tip of final 12 months, the central financial institution knowledge confirmed.
The variety of the energetic bank cards rose by 36,510 within the first eight months of final 12 months to 1,963,705, whereas the quantity has decreased by 46,369 or 2.4 % within the 12 months by way of finish August this 12 months.
“There could possibly be two causes. The primary one is folks don’t have the buying energy as a result of decrease disposable revenue. So, they is perhaps cancelling their bank cards,” a monetary analyst, who requested to not be named, mentioned.
“The second is a sudden enhance in migration with many professionals who’ve been utilizing bank cards are leaving the nation and so they might need cancelled their playing cards.”
Sri Lanka has seen a pointy enhance in migration because the island nation declared chapter and sovereign debt default in April final 12 months.
Some analysts mentioned increased curiosity (penalty) charges on bank cards additionally would have prompted some customers to cancel their playing cards.
The central financial institution spiked the rates of interest sharply in April final 12 months to battle towards a hyperinflation. Nonetheless, the inflation is now hovering round 1.3 % and the central financial institution has decreased its key coverage charges thrice this 12 months.
Nonetheless, the declining pattern within the variety of energetic bank cards has but to see reversal. (Colombo/October 07/2023)
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