brand logo

Banks unable to issue cards amidst plastic shortage

17 Jul 2022

By Tanya Shan Local Licensed Commercial Banks (LCBs) and other financial institutions are no longer in a position to issue new credit and debit cards to customers amidst a shortage of imported plastics required for the cards, The Sunday Morning Business learns.  Speaking to The Sunday Morning Business on conditions of anonymity, several local banks said they were managing at present with whichever resources available.  However, most of the banks noted that they faced delays in issuing cards as they were unable to issue the cards on the same day as requested by the customer.  Affected customers have been seen complaining on social media over the past few days.  The plastic used for credit cards is polyvinyl chloride acetate, most commonly known as PVCA or PVC. Bans and forex shortages in the banking system have made it difficult for Sri Lanka to rely on imports for most of its needs, including essential items. According to statistics published by the Central Bank of Sri Lanka (CBSL) Payments Bulletin for Q3 of 2021, a total number of 62,855 new credit cards were issued during the quarter, through which Rs. 12 million had been transacted.  Furthermore, a total number of 2,071,348 cards were in use during Q3 2021, which is an increase from 1,981,285 in Q3 2020.  However, CBSL data reveals as of Q3 2021, a total number of 175,152 credit cards had defaulted – approximately Rs. 16.4 billion in value.   


More News..