Inflation ( CCPI)0.9% (March 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.90%
12M T-Bill Rate10.21%
2Y T-Bond Rate10.85%/ 11.00%
4Y T-Bond Rate12.10% / 12.20%
USD/LKR298/299
Reserves $4.951Bn (March 2024)
Cum. Trade Deficit $860 Mn (Feb 2024 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

CBSL reject majority of bids at T-Bill auction to control the interest rate

Interest RatesOct 19, 2022
CBSL reject majority of bids at T-Bill auction to control the interest rate

T-Bill auction went undersubscribed as CBSL managed to sell only LKR 16.123Bn after it offer LKR 75Bn to be auctioned today. All the rates of 91,182 & 364 Days remained unchanged but investors are demanding a higher premium to lend money to the Government, especially after Tax increases and uncertainty over domestic debt restructuring.

If CBSL is unable to raise additional funds via phase II of the auction, more money printing is unavoidable.

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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.