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Credit Trend

Aug 13, 2012 (LBO) - Loans from Sri Lanka's banking system fell to 13.
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5 billion rupees in June 2012, from 41.8 billion a month earlier with state credit no longer pressuring the banking system, while private citizens' credit remained positive, official data showed.
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Total loans from commercial banks to private borrowers rose 19.0 billion rupees to 2,234.9 billion rupees in June up 31.6 percent from a year earlier, slowing from a 33.
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5 percent growth in May.

Credit to the state including state enterprises fell 5.

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5 billion rupees 1,285.9 billion rupees.

Bank credit to the central government fell 14.

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5 billion rupees to 1,010.3 billion rupees in June, up 37.
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5 percent from a year earlier, down from a 44.7 percent growth shown in May.

Credit to state enterprises continued to grow in June by 9.

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0 billion rupees to 275.6 billion rupees, up 77.8 percent from a year earlier but slowing from 107.7 percent from May.

Sri Lanka ran into a balance of payments crisis from mind 2011 due to heavy state borrowings, especially by energy enterprises which were using credit to manipulate tariffs.

Amusingly however, authorities and pro-establishment economist blamed car imports falling back to Mercantilism. Imports (and trade deficits) are secondary symptom of de

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