Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.14%
12M T-Bill Rate9.95%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.60% / 11.70%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Majority expect CBSL will raise the benchmarked interest rate tomorrow at MPC

Opinion pollsJan 19, 2022
Majority expect CBSL will raise the benchmarked interest rate tomorrow at MPC

The uprise of inflation due to supply-side disruptions, higher cost of imports, and over LKR 1.4 Trillion printed money in the financial system hits a requirement of an interest rate hike at tomorrow's MPC meeting.

On the other hand, the rate increase will overshoot the borrowing cost of the government, which is experiencing a widening fiscal deficit. The majority expect a rate hike.

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