Sri Lanka Treasury Bill rate fell marginally at the primary auction

Sri Lanka interest rates have started falling across all the maturities due to high overnight liquidity and weak credit expansion in the finance sector. 91Days fell by 0.04% to 4.52%, 182Days to 4.67%, and 364days at 4.89%. It was seen the overall private sector credit fell for the third consecutive month in July despite CBSL cut down the benchmarked interest rates and flood the market with excess money. Meanwhile, the Monetary Board decided to extend the deadline of the 4% Working Capital Loan Scheme till 30th September allowing more time to apply for the loans. Banks have disbursed LKR 68.6Bn new loans at 4% interest rates under this program.