Inflation ( CCPI)1.3% (Sep 2023)
GDP-3.1% (2Q 2023)
Unemployment4.7% (1Q 2023)
3M T-Bill Rate17.42%
12M T-Bill Rate13.30%
2Y T-Bond Rate14.60%/ 15.00%
4Y T-Bond Rate14.50% / 14.90%
Reserves $3.60Bn (Aug 2023)
Cum. Trade Deficit $2,930 Mn (Aug 2023 cumulative)
Cum. Fiscal DeficitLKR 1,243 Bn (June 2023)

Interest rate jumped by 3% while EPF not active on the auction

Interest RatesJun 30, 2022
Interest rate jumped by 3%  while EPF not active on the auction

Rates increase across all the T-Bill maturities 91Days by 3.12%, 182Days by 2.5% and 364days by 1.80%. As per the CBSL sources, EPF's bidding information was not available.

Yields fell continuously at the primary auction despite the fact that inflation went in the other direction in the real economy. But CBSL was happy to borrow as much as a lower rate and keep the borrowing cost of domestic financial institutions also lower.

CBSL reject the majority of the bids at the previous auction hinting unsatisfactory of the upward trend of the interest rate.


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