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%
USD/LKR322/323
Reserves $3.60Bn (Aug 2023)
Cum. Trade Deficit $2,623 Mn (July 2023 cumulative)
Cum. Fiscal DeficitLKR 1,243 Bn (June 2023)

Rumor of SRR cut at coming monetary Policy does not have strong evidence but idea has a acceptancy

Opinion pollsOct 5, 2022
Rumor of SRR cut at coming monetary Policy does not have strong evidence but idea has a acceptancy

The market o/n liquidity shortfall is above LKR 700Bn since April. The economic slowdown and rising NPL have limited the money flow to banks. High-interest rates in GSec pull the bank deposit toward it. This may prompt an SRR cut to inject money into the banking system, where a majority still do not expect it to happen in the coming monetary policy meeting.

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