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 T-Bill holding increased by LKR 1.2 trillion during 2022

Bank & FinanceDec 30, 2022
CBSL T-Bill holding increased by LKR 1.2 trillion during 2022
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CBSL issues T-Bills on behalf of the government for budgetary purposes. These T-Bills are purchased by the public. When the public does not wish to lend money to the government CBSL print money to provide funding for the government.

Higher money printing is expected to push the inflation in long run. During 2022, CBSL tried to control the interest rate by printing money as the public demanded a higher interest rate to compensate higher inflation rate.

Uncertainty about the domestic debt restructuring also have push domestic interest rates to a higher level as the default risk premium is higher in the current economic context than stable economic condition.

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