Inflation ( CCPI)0.9% (May 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.39%
12M T-Bill Rate9.90%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.10% / 11.25%
USD/LKR304/305
Reserves $5.4Bn (May 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

CBSL prints more money to settle Bond interest payments on 1st March 2023

Bank & FinanceMar 2, 2023
CBSL prints more money to settle Bond interest payments on 1st March 2023

It is one of the key responsibilities of CBSL, to settle interest payments formally known as the “Bond coupons” for bonds which have already issued. There was a coupon payment due on 1st of March. Despite the high demand for government debts by investors, CBSL was unable to sell the required amount at the primary auction phase-1 and 2.

This has resulted printing money to settle those bond-coupons payments which were due on 1st March. CBSL data indicates that LKR 17Bn has been printed on 1st of March 2023.

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