Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.91%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
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Reserves $1.89Bn (Dec 2022)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

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
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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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