Inflation ( CCPI)4.0% (Aug 2023)
GDP-3.1% (2Q 2023)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate18.12%
12M T-Bill Rate13.32%
2Y T-Bond Rate14.60%/ 15.00%
4Y T-Bond Rate14.50% / 14.90%
USD/LKR322/323
Reserves $3.60Bn (Aug 2023)
Cum. Trade Deficit $2,623 Mn (July 2023 cumulative)
Cum. Fiscal DeficitLKR 1,243 Bn (June 2023)

Improved overnight liquidity pulls down the T-Bill rates

Interest RatesJan 11, 2023
Improved overnight liquidity pulls down the T-Bill rates

CBSL, in an aggressive mode, injected more money via the term Rev Repo auction into the money market in recent days. That resulted in a steep decline in 91Days T-Bill rate from 32.64% at end of 2022 to 31.15% within two weeks. CBSL had warned the market that the current interest rate required adjustment.

CBSL still borrowing very short-term basis (91 days) and market demand is three times higher than the CBSL offered volume while market demand for 364 days is a little lower 2 times.

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