Inflation ( CCPI)25.2% (May 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.65%
12M T-Bill Rate22.91%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $1,443Mn (April 2023 cumulative)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

Liquidity shortage push short term T-Bill rate from 8.50% to 8.61% at primary auction

Interest RatesMar 1, 2022
Liquidity shortage push short term T-Bill rate from 8.50% to 8.61% at primary auction
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Overnight liquidity shortfall continues to pressure the short-term interest rate. As a result, 91Days T-Bill rate jumped from 8.50% to 8.61%, 182Days 8.54% to 8.53%, and 364Days 8.57% to 8.53%.

Investors are demanding a higher premium to buy long-term bills that resulted in the very low sales of 182Days and 364Days bills. CBSL borrowings are moving towards the very short term.


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