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%
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

91Days T-bill Rate surpassed 33% first time as Gov reliance on domestic borrowing increases

Interest RatesOct 12, 2022
91Days T-bill Rate surpassed 33% first time as Gov reliance on domestic borrowing increases

The 91Days T-Bill rate increased to 33.05% from the previous high of 32.95% recorded last month. 182Days rate is also elevated to 32.52% while the 364days rate fell to 29.60% as CBSL did accept only LKR 511Mn. The auction fell short of LKR 29.6Bn against offered amount.

The tax hikes, high inflation, and debt restructuring is demanding a higher risk premium for an investor to park money with the Central government.


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.