Inflation ( CCPI)-0.8% (Oct 2024)
GDP4.7% (2Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.35%
12M T-Bill Rate9.95%
2Y T-Bond Rate10.37%/ 10.45%
4Y T-Bond Rate11.80% / 11.90%
USD/LKR292/293
Reserves $5.99Bn (Sep 2024)
Cum. Trade Deficit $3,584 Mn (Aug 2024 cumulative)
Cum. Fiscal DeficitLKR 910Bn (Aug 2024 cumulative)

Government guarantee debt nearly doubled in 2022 from 2021

Bank & FinanceFeb 22, 2023
Government guarantee debt nearly doubled in 2022 from 2021

Apart from funding through the treasury cash flows or borrowed funds through CBSL, the government offers a guarantee to banks to lend the money to state-own entities. The largest exposure carried by BOC amounting to LKR 895Bn, followed by PB LKR 783Bn, and NSB 204Bn.

The government’s public debt includes a government guarantee, which may be subject to the domestic debt restructuring process. Some of the countries that opted for the domestic debt restructuring process, had restructured the Government guarantee debt as well.

Disclaimer

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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.