Inflation ( CCPI)1.3% (Sep 2023)
GDP-3.1% (2Q 2023)
Unemployment4.7% (1Q 2023)
3M T-Bill Rate17.42%
12M T-Bill Rate13.30%
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)

Overnight net liquidity turned to positive after 15 months

Bank & FinanceJan 12, 2023
Overnight net liquidity turned to positive after 15 months

As the lender of the last resort, CBSL advanced money to banks on daily basis. Since the start of 2023, CBSL has accelerated offering term Rev Repos along with overnight Rev Repo. LKR 450Bn of term Rev Repo facilities have been extended by CBSL as of now.

These actions have eased off the pressure on short-term interest rates and helped to fall the T-bill rates. Despite the overnight liquidity shortfall decline, the overall liquidity shortfall remains high.

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The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.