Inflation ( CCPI)6.4% (Jan 2024)
GDP1.6% (3Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate9.79%
12M T-Bill Rate10.02%
2Y T-Bond Rate11.05%/ 11.10%
4Y T-Bond Rate12.20% / 12.30%
USD/LKR313/314
Reserves $4.5Bn (Jan 2024)
Cum. Trade Deficit $4,866 Mn (Dec 2023 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

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 ?

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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