Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.55%
12M T-Bill Rate10.07%
2Y T-Bond Rate10.55%/ 10.65%
4Y T-Bond Rate11.80% / 11.85%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Treasury Bill rate is rising at faster rate as inflation looks to shoot-up

Interest RatesApr 20, 2022
Treasury Bill rate is rising at faster rate as inflation looks to shoot-up

Treasury bill rate increased across all the maturities whereas 91Days jumped by 350bps to 23.21%, 182Days jumped by 204bps to 24.77% and 364Days jumped by 100 bps to 24.36%. During previous auction CBSL managed to sell entire required amount of T-Bills, but it failed to do so in this auction where as it sold less than 50% of the maturity amount. This will forced CBSL to print money once again.

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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.