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%
Reserves $3.60Bn (Aug 2023)
Cum. Trade Deficit $2,623 Mn (July 2023 cumulative)
Cum. Fiscal DeficitLKR 1,243 Bn (June 2023)

Banks new deposit rate fell first time after 10 months of continuous rise

Interest RatesFeb 6, 2023
Banks new deposit rate fell first time after 10 months of continuous rise

Bank deposit rates increased in response to the rising inflation, increase in government dependency on domestic finance, and the possibility of domestic debt restructuring. Bank’s new deposit & lending rates increased by 16.5% to 17.5% during the last twelve months while the T-Bill rate increased by 21%.

After 364Days T-Bill stabilized since mid of 2022, the bank’s deposit rate was also forced to slow down, and the effect visible at end of 2022 as the bank’s deposit rate fell marginally in December from where it was in November.


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