Banking sector NPL ratio hits 5.6% in May

Sri Lanka’s banking sector asset quality measured by the gross non-performing loan (NPL) ratio increased to 5.6 percent at endmay from 5.1 percent at end-march, according to Central Bank provisional data.

In absolute figures, the sector’s non-performing loans were estimated at Rs.481 billion at end-may.

A Central Bank official said these figures may need some adjustments due to the moratorium granted to COVID-19-HIT businesses.

The Central Bank granted several moratoria since Easter Sunday attacks in April 2019, which have taken off some pressure on the sector’s asset quality temporarily.

Sri Lanka’s banking sector NPL ratio has been on an upward trajectory since early 2018.