Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.14%
12M T-Bill Rate9.95%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.60% / 11.70%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

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

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

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.