Inflation ( CCPI)0.9% (May 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.39%
12M T-Bill Rate9.90%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.10% / 11.25%
USD/LKR304/305
Reserves $5.4Bn (May 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

Sri Lanka ISBs are under pressure once again

Interest RatesOct 15, 2021
Sri Lanka ISBs are under pressure once again
The yields of Sri Lankan ISBs are reflecting weaker investor sentiments as yields are volatile. Declining international reserves, widening fiscal and trade gaps have created unfavorable conditions for investors to hold a steady view on the CBSL's commitment of repayments of those bonds especially maturing on next year. CBSL has proposed a number of avenues that bring the expected foreign exchange to the country under the Road Map for the next Six months. Very illiquid SRILANs (ISBs) are used to produced volatile yield fluctuations.

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