Inflation ( CCPI)0.9% (March 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.90%
12M T-Bill Rate10.21%
2Y T-Bond Rate10.85%/ 11.00%
4Y T-Bond Rate12.10% / 12.20%
USD/LKR298/299
Reserves $4.951Bn (March 2024)
Cum. Trade Deficit $860 Mn (Feb 2024 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

Real Return on the Deposit holders turned to negative after inflation hit sky rocket

Interest RatesFeb 5, 2022
Real Return on the Deposit holders turned to negative after inflation hit sky rocket

Sri Lanka inflation has been on the rise as supply disruption and production collapse continue. Weak foreign currency liquidity has forced self-restriction on many import items which also has put massive pressure on non-food inflation. The interest rate on T-bills has been adjusted faster than Bank Deposits allowing positive real return but bank deposit rates have yet to start the move.

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