Inflation ( CCPI)1.5% (April 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate8.76%
12M T-Bill Rate9.29%
2Y T-Bond Rate10.00%/ 10.05%
4Y T-Bond Rate10.70% / 10.80%
USD/LKR299/300
Reserves $5.438Bn (April 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

CBSL kept the benchmark interest rate unchanged to contain any demand-driven inflationary pressures

Interest RatesNov 24, 2022
CBSL kept the benchmark interest rate unchanged to contain any demand-driven inflationary pressures

Weak economic performance in short term before moving to the recovery path and continuation of the credit contraction has been considered while positive signs such as narrowing down the trade deficit have forced CBSL to keep the tight monetary policy stance.

The Central Bank would expect a moderation of excessive market interest rates, in line with the prevailing policy interest rates. If an appropriate downward adjustment in the market interest rates would not take place in line with the envisaged disinflation path, the Central Bank will be compelled to impose administrative measures to prevent any undue movements in market interest rates.

Disclaimer

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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.