Inflation ( CCPI)35.3% (April 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.60%
12M T-Bill Rate22.97%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
USD/LKR297/298
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $862Mn (March 2023)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

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
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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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