Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.55%
12M T-Bill Rate10.07%
2Y T-Bond Rate10.55%/ 10.65%
4Y T-Bond Rate11.80% / 11.85%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Asian currencies are outperforming other emerging and developing economies

Exchange RateNov 2, 2020
Asian currencies are outperforming other emerging and developing economies
Sri Lanka Ruppe depreciated only by 1.85% YTD while other Asian currencies are also outperforming many emerging and developing economies sofar this year. Reduction of imports cum. by 20% has resulted in a 21% decline of trade deficit so far this year compared to last year in Sri Lanka. Bilateral FX inflows from India and China have given further breathing space till the government plans out how to bridge the gap between gov revenue and expense. Sri Lanka CBSL has been a net buyer of the FX so far this year of $ 255Mn (end of Sep). CBSL has been a net buyer of FX ever since re-open the economy in May.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.