Credit card growth momentum slows as Sri Lanka enters second half

Sri Lanka's credit card market showed mixed momentum during the opening months of 2026, with expansion in new active cards peaking in May before losing pace the following month. The 4.7 percent growth recorded across the first half reflects the overall trajectory, though month-to-month variations suggest emerging softness in credit expansion.

The May surge in new active credit cards indicated robust consumer demand and confidence in the economy during the period. However, the subsequent slowdown in June raised questions about whether the momentum could be sustained as the year progresses. Industry analysts will closely monitor whether the deceleration represents a temporary correction or signals weakening demand in the broader credit market.

The credit card sector remains a key indicator of consumer spending patterns and financial health in Sri Lanka. Banks and financial institutions have been competing aggressively to expand their credit card portfolios, but the June slowdown suggests market saturation or cautious consumer behaviour may be taking hold.

Economists will be watching for further data to determine whether the first-half expansion can be maintained. The coming months will reveal whether June's moderation marks the beginning of a downward trend or merely a pause in what remains a growth trajectory for the sector.