Inflation ( CCPI)0.9% (March 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.90%
12M T-Bill Rate10.21%
2Y T-Bond Rate10.85%/ 11.00%
4Y T-Bond Rate12.10% / 12.20%
Reserves $4.951Bn (March 2024)
Cum. Trade Deficit $860 Mn (Feb 2024 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

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.


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