CBSL projects improved demand, sales, capacity utilization, and investment in Q4 2024, despite tight credit conditions and rising prices, with credit demand focused on operational expenses.
The Central Bank of Sri Lanka (CBSL) projects improved demand and sales volumes in Q4 2024, driven by growth in all major economic activities, with the Demand Index rising to 137 and the Sales Volume Index to 141. Capacity utilization is also expected to increase, reflecting enhanced economic performance. The Investment Index is forecasted to climb from 107 to 123, with firms prioritizing expansion over maintenance. Input and output prices are expected to rise, particularly in the services sector, amid continued tight credit conditions due to stricter bank lending standards. Despite this, the Credit Demand Index is anticipated to grow by 8 points to 136, primarily for operational expenses.