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%
Click on the chart for more details
Reserves $2.22Bn (Feb 2023)
Cum. Trade Deficit $449Mn (Feb 2023)
Cum. Fiscal DeficitLKR 1,601Bn (Nov 2022)

Public expect no change in the benched mark interest rate at monetary policy statement tomorrow

Opinion pollsMar 2, 2023
Public expect no change in the benched mark interest rate at monetary policy statement tomorrow
This story is available exclusively to subscribers. Become an member and start reading now.

The T-bill rates have fallen marginally while AWPR has fallen by around 1%. The last few T-bill auctions give mixed signals on raising the target funds while CBSL prints 66Bn additional. Inflation fell by 6.6% from the end of 2022. It witnessed that it is too early for CBSL to enter into a loosening monetary policy stance.

The gap between the 364Days T-bill rate and Inflation too has narrowed from 28% to 23% at end of Feb 2023. Yet there is no sufficient evidence of slowing down the government borrowings despite government revenue improvement. Hence borrowing pressure generated by the government is yet to be witnessed.

Credit to the private sector from banks continues to fall, which will results improvement in LKR liquidity in the money market. This may help to reduce the T-Bill rates in the primary and secondary markets during the coming weeks.


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.