Inflation ( CCPI)1.5% (Oct 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate15.29%
12M T-Bill Rate12.94%
2Y T-Bond Rate14.45%/ 14.50%
4Y T-Bond Rate14.70% / 14.80%
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

T-Bill auction subscribing on downward trend despite liquidity improved

Interest RatesFeb 22, 2023
T-Bill auction subscribing on downward trend despite liquidity improved

The T-Bill rates fell marginally at the primary market auction held today there is a marginal drop in 91 days and 364 days, rates. But CBSL managed to sell a lower amount than they planned (offered) to sell. CBSL activated the OMO auction to improve the liquidity in the market but it wasn’t effective enough to reduce the yields substantially.

The number of bids received at the primary auction has fallen substantially and that’s the key reason for CBSL to use the second phase T bill sale. Furthermore, this would help to avoid money printing which services domestic debt payments.


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.