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%
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Reserves $2.22Bn (Feb 2023)
Cum. Trade Deficit $449Mn (Feb 2023)
Cum. Fiscal DeficitLKR 1,601Bn (Nov 2022)

Investors reduce its' lending to CBSL via SDF, where that money moved ?

Bank & FinanceFeb 23, 2023
Investors reduce its' lending to CBSL via SDF, where that money moved ?
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After CBSL imposed restrictions on accessing the SDF window on a daily basis, banks tend to invest money on every Fridays at 14.50% and the rest of the days at 0.00% return. It is learned that banks with excess cash have started buying T-bills to maximize the return.

Earlier, it was expected that the banks with excess liquidity would refrain from investing in T-Bills or lending to other market participants. The deposits with CBSL-SDF were LKR 366Bn at the start of 2023 and now it has reduced to LKR 230Bn. This shows early signs of shifting liquidity from overnight to longer term G-sec.


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