Sri Lanka Non-Performing Loans
Bank nonperforming loans as % of total gross loans FB.AST.NPER.ZS
Sri Lanka's non-performing loans was 14.33% in 2025, ranked 11th globally. This represents a 19.7% increase from 2024. Data from World Bank, covering 2011–2025.
Overview
Sri Lanka's non-performing loans stood at 14.33% in 2025, a rise of +2.36pp from 2022. Based on recent trends, this figure is projected to reach 14.33% by 2025. Sri Lanka ranked 11th globally.
Sri Lanka’s non-performing loans ratio has risen sharply, reaching 14.33% in 2025, the highest level in the country’s recorded history and the eleventh highest globally. This marked a substantial deterioration from earlier levels, including a low of 2.50% in 2017, and a more moderate 3.82% in 2011. The surge reflects mounting financial stress within the banking sector, driven by economic instability, currency depreciation, and weak debt recovery mechanisms. At 14.33%, Sri Lanka’s ratio is comparable to that of the Central African Republic at 14.59% and exceeds those of peer economies such as Tonga at 14.18%. The continued elevation of non-performing loans threatens credit intermediation and financial sector resilience. Without structural reforms in loan governance, strengthened regulatory oversight, and broader macroeconomic stabilization, the ratio is likely to remain elevated, constraining credit availability and impeding economic recovery in the near term.
Data & projection
| Year | Non-Performing Loans | YoY change | Rank |
|---|---|---|---|
| 2025* trend | 14.33% | - | - |
| 2025 | 14.33% | +2.36pp | #11 |
| 2022 | 11.97% | +7.50pp | #118 |
| 2021 | 4.47% | −0.46pp | #78 |
| 2020 | 4.93% | +0.23pp | #79 |
| 2019 | 4.70% | +1.28pp | #81 |
| 2018 | 3.42% | +0.92pp | #66 |
| 2017 | 2.50% | −0.14pp | #43 |
| 2016 | 2.63% | −0.61pp | #42 |
| 2015 | 3.24% | −0.99pp | #50 |
| 2014 | 4.23% | −1.34pp | #63 |
| 2013 | 5.58% | +1.95pp | #75 |
| 2012 | 3.63% | −0.19pp | #53 |
| 2011 | 3.82% | – | #57 |
Detected Pattern
Analysis
Sri Lanka matched the Export Boom Cycle pattern in 2024. Historically, 71% of countries showing this pattern (546 out of 768) saw non-performing loans improve within 24 months. View full analysis →
Frequently Asked Questions
Sri Lanka's non-performing loans was 14.33% in 2025. Ranked 11th globally. This represents a 19.7% increase from the previous year.
Sri Lanka's non-performing loans peaked at 14.33% in 2025.
The lowest non-performing loans in Sri Lanka was 2.50% in 2017.
Sri Lanka ranks 11th globally in non-performing loans as of 2025.
The World Bank indicator code is FB.AST.NPER.ZS. Data sourced from World Bank.
Sri Lanka's non-performing loans is projected to reach 14.33% by 2025 based on trend extrapolation.
The non-performing loans of Sri Lanka in 2025 was 14.33%. This ranks 11th in the world.
Cite this page
@misc{historysaid_sri-lanka_non-performing-loans,
title = {Sri Lanka Non-Performing Loans},
url = {https://historysaid.com/sri-lanka/non-performing-loans/},
publisher = {HistorySaid},
year = {2026}
}