Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.91%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
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Reserves $1.89Bn (Dec 2022)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

Overnight net Liquidly turned to almost positive after CBSL's LKR 90Bn Rev Repo Auction

Bank & FinanceJan 11, 2023
Overnight net Liquidly turned to almost positive after CBSL's LKR 90Bn Rev Repo Auction
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The banks and PDs borrow and lend to each other in the money market and any excess liquidity will deposit with CBSL at 14.50% or any shortfall will finance from CBSL at 15.50% on an overnight basis. CBSL has started lending term money to the market instead of overnight money at 28% to 29%.

As the interest rate has increased substantially, the market participants required more collaterals to borrow from CBSL. Borrowing & settling overnight basis creates operational hassle and increases settlement risk. CBSL has eased the operational and settlement risk by lending on a term basis ( 30 days to 60 days).

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