Bank lending secured against gold rose by Rs. 211.9 billion in the first half of 2026, according to data from the Central Bank of Sri Lanka (CBSL).
Pawning advances grew 23.6% between the end of December 2025 and the end of June 2026, taking the outstanding total to Rs. 1.11 trillion. Their share of total bank lending rose from 8.9% to 9.9%.
Pawning is now the third-largest lending sub-sector, behind construction, including housing, at Rs. 1.91 trillion and wholesale and retail trade at Rs. 1.13 trillion.
Banks extended Rs. 1.14 trillion in new private-sector credit over the six months, and pawning made up 18.6% of that. Of the Rs. 443.5 billion increase in personal loans, nearly half came from pawning. New credit to agriculture and fishing was Rs. 86.6 billion.
For households, the figures show how many borrowers are turning to gold-backed loans. Such loans are secured, which limits risk for banks, but the amount a customer can borrow is closely tied to the price of gold.
Lending to financial and business services rose by Rs. 212.7 billion, or 27.1%, to Rs. 996.8 billion.
