Inflation ( CCPI)50.6% (Feb 2023)
GDP-12.4% (4Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate25.99%
12M T-Bill Rate24.31%
5Y T-Bond Rate27.00%/ 27.25%
10Y T-Bond Rate22.00% / 23.00%
Click on the chart for more details
Reserves $2.22Bn (Feb 2023)
Cum. Trade Deficit $449Mn (Feb 2023)
Cum. Fiscal DeficitLKR 1,601Bn (Nov 2022)

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
This story is available exclusively to subscribers. Become an member and start reading now.

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.


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.