Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.91%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
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Reserves $1.89Bn (Dec 2022)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

Credit to the private sector shrunk for the sixth consecutive month

Bank & FinanceDec 4, 2022
Credit to the private sector shrunk for the sixth consecutive month
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Credit to the private sector shrunk for the sixth consecutive month as banks struggled with high-interest rates and building up non-performing loans. But net credit to the government is rising. On the other than the domestic debt restructuring has become a headline.

Continuous contraction of the private sector credit would negatively impact the GDP in 3Q and 4Q of 2022, as modern economic growth is attached to the credit cycles.

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