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)

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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