Inflation ( CCPI)1.5% (Oct 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate15.29%
12M T-Bill Rate12.94%
2Y T-Bond Rate14.45%/ 14.50%
4Y T-Bond Rate14.70% / 14.80%
USD/LKR327/328
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

Short term T-bill rate up while 1Y rate stable ahead of Monetary Policy Meeting

Interest RatesAug 17, 2022
Short term T-bill rate up while 1Y rate stable ahead of Monetary Policy Meeting

91Days T-Bill rate jumped by 1% to 29.44%, which is rising for the second continuous week, while 182Days and 364Days Bills rate remain almost the same at 28.96% and 29.14% respectively.

CBSL manage to sell LKR 60Bn despite it’s liability to settle on Friday to the market participants ( Banks, PDs and other Public) is less than LKR 8Bn. This would allow CBSL to sell down some of their holdings or fund the central treasure without printing more money.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

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.