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)

Treasure Bill auction size tripled after two years

Interest RatesJan 22, 2023
Treasure Bill auction size tripled after two years

CBSL auctions T-Bills to repay its earlier debts as well as if there are new borrowings. Out of these earlier debts, part is held by the public (individuals and institutions) and CBSL itself. CBSL’s T-bills liability was LKR 1.8 trillion two years back and now it stands at LKR 4.2 trillion.

Out of the LKR 4.8 trillion of CBSL’s current T-Bill liability, LKR 2.5 Trillion is been held by CBSL itself due to money printing. This means Government is liable to pay LKR 2.3 trillion to the public and LKR 2.5 Trillion to CBSL. This composition was much lower two years back when the Government was liable for LKR 1 trillion to the public and LKR 0.7 trillion to CBSL.

CBSL does not offer the entire maturity amount on a weekly basis for the action as the market maturities are far below CBSL’s maturities. The short-term debt level is accumulating much faster phase as the government is been cut off from external funding due to sovereign default.

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.