Inflation ( CCPI)1.5% (April 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate8.76%
12M T-Bill Rate9.29%
2Y T-Bond Rate10.00%/ 10.05%
4Y T-Bond Rate10.70% / 10.80%
USD/LKR299/300
Reserves $5.438Bn (April 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

Monthly Opinion Survey : Public continues to expect steep depreciation of the LKR against USD in March

Opinion pollsMar 3, 2022
Monthly Opinion Survey : Public continues to expect steep depreciation of the LKR against USD in March

Sri Lanka is practicing three slabs of the USD/LKR for the usual exchange at 203.00, for remittance at 210.00 at the formal banking channel, while informal channels exchange of USD to LKR has been from 240.00 to 260.00. The public has been continued to expect the more free float of the LKR, but monetary authorities have not allowed it despite heavy criticism over the strategy.

Russia that has been engaging in a war with Ukraine is one recent example of letting the value of domestic currency determine the market forces. Especially the remittance and exports proceeds have slowdown dramatically to generate required FX flows to the country as a result of keeping the artificial exchange rate

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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.