Inflation ( CCPI)0.9% (May 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.39%
12M T-Bill Rate9.90%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.10% / 11.25%
USD/LKR304/305
Reserves $5.4Bn (May 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

The T-Bill rate fell substantially after the restriction of SDF starts effecting

Interest RatesJan 18, 2023
The T-Bill rate fell substantially after the restriction of SDF starts effecting

The 91Days T-Bill rate fell by 1.07%, 182Days fell by 2.30% and 364Days fell by 0.79% at the primary auction today. CBSL had a small market liability to settle for this auction, they not only managed to collect LKR 95Bn and they raised more funds in 364Days T-Bills.

CBSL restricted accessing the SDF, where banks and PDs lend their excess liquidity to CBSL on an overnight basis for five days, the effective date for this direction is 16th Jan. This is the first auction after that restriction.

It was expected that after this restriction at least some banks and PDs with excess liquidity will buy short-term T-bills instead of investing that excess money with CBSL for 13 days.

Disclaimer

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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.