Inflation ( CCPI)1.3% (Sep 2023)
GDP-3.1% (2Q 2023)
Unemployment4.7% (1Q 2023)
3M T-Bill Rate17.42%
12M T-Bill Rate13.30%
2Y T-Bond Rate14.60%/ 15.00%
4Y T-Bond Rate14.50% / 14.90%
USD/LKR322/323
Reserves $3.60Bn (Aug 2023)
Cum. Trade Deficit $2,930 Mn (Aug 2023 cumulative)
Cum. Fiscal DeficitLKR 1,243 Bn (June 2023)

Investor confidence deteriorates further, Risk moving to other bonds

Interest RatesJul 5, 2021
Investor confidence deteriorates further, Risk moving to other bonds
Sri Lanka's crisis on USD liquidity is worsening as the CBSL further tightening the FX outflow as a means of keeping the head above water level. However, Dollar-denominated bonds continue to lose value in the international market with the default risk is now seen moving to other shorter-end bonds. Despite repeated attempts by monetary authorities to keep the investor's calm, it is now taking a turn for the worst.

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