Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.88%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
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Reserves $2.12Bn (Jan 2023)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

CBSL reduce the T-Bill holding as they sell more T-Bills at phase II

Bank & FinanceDec 23, 2022
CBSL reduce the T-Bill holding as they sell more T-Bills at phase II
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The quantum of T-Bill holdings by CBSL ( formally known as money printing) was reduced by LKR 14Bn one week before the end of 2022. CBSL has managed to sell more T-Bills than market maturity while allowing participants to participate Phase-II auction.

T-bills held by CBSL jumped by LKR 64Bn on 15th December, when the T-bond settlement took place. CBSL was not able to sell the required amount of T-Bonds at the auction and had to print the money to settle the investors who brought those bonds earlier. Later CBSL raised more funds from the T-Bill auction to replace the printed money.

Effectively, CBSL’s long-term borrowing (borrowing via T-Bonds) has shifted partly to short-term (borrowing via T-Bills).

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