Inflation ( CCPI)0.9% (March 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate10.03%
12M T-Bill Rate10.23%
2Y T-Bond Rate10.85%/ 11.00%
4Y T-Bond Rate12.10% / 12.20%
USD/LKR300/301
Reserves $4.951Bn (March 2024)
Cum. Trade Deficit $860 Mn (Feb 2024 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

An Average interest rate that banks lend to their key customers reached 30%

Interest RatesOct 22, 2022
An Average interest rate that banks lend to their key customers reached 30%

The bank’s lending rates are soaring along with the Treasury Bill rates. The T-Bill rate represents the government borrowing rate, which is the biggest single borrower in the market. Funds available within the banking sector have declined substantially.

The rentals from advancers ( loan portfolio) have deteriorated due to NPL, money moving to T-Bills, and the decline of the value of the current assets of the banks to pledge and borrow have pushed the cost of borrowing of the bank in return their lending rate has jumped.

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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.