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)

Banks's borrowing cost continue to increase

Interest RatesOct 29, 2022
Banks's borrowing cost continue to increase

CBSL increased the benchmarked interest rate by 1% in March and 7% in April, resulting in sharp adjustments for the T-Bill rates. It starts reflecting in the bank’s deposit rates with a time lag, which now surpassed 22%.

With the increment of the borrowing cost bank’s lending rates also have elevated towards 25%.

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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.