Inflation ( CCPI)25.2% (May 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.65%
12M T-Bill Rate22.91%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
USD/LKR297/298
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $1,443Mn (April 2023 cumulative)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

Sri Lanka's ISB bond July 2022 yields trading above 30 pct again

Interest RatesAug 17, 2021
Sri Lanka's ISB bond July 2022 yields trading above 30 pct again
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With Sri Lanka's successful settlement of ISB that matured at the end of July, the default risk has eased off, where before the settlement, yields across all the maturities went up significantly. However, the pressure is mounting on ISB that is maturing on 22nd July 2022. Investors seem to place less default risk on ISB, maturing in Jan 2022 as Sri Lanka is expected to receive IMF reserves allocation of USD 780Mn before the end of December.

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