Inflation ( CCPI)5.9% (Feb 2024)
GDP4.5% (4Q 2023)
Unemployment4.7% (3Q 2023)
3M T-Bill Rate10.17%
12M T-Bill Rate10.28%
2Y T-Bond Rate10.85%/ 11.00%
4Y T-Bond Rate12.10% / 12.20%
USD/LKR301/303
Reserves $4.517Bn (Feb 2024)
Cum. Trade Deficit $4,866 Mn (Dec 2023 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

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

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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