Inflation ( CCPI)1.5% (Oct 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate15.29%
12M T-Bill Rate12.94%
2Y T-Bond Rate14.45%/ 14.50%
4Y T-Bond Rate14.70% / 14.80%
USD/LKR327/328
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

Sri Lanka Rupee advance further while breaking previous CBSL lower bound

Exchange RateMar 3, 2023
Sri Lanka Rupee advance further while breaking previous CBSL lower bound

Sri Lanka Rupee appreciated further despite the majority of the market participants expecting it to be held above 350 per 1 USD a few days ago. Now it has appreciated beyond the closing price of yesterday which was 346. Positive sentiment is now driving the value up for LKR.

A sharp rise in the value of LKR would encourage more imports and discourage exports. Higher volatility of the price of any commodity will disturb the well functioning of the capital markets.

People who expected a further depreciation or flat USD/LKR at the previous level of 363 would rush to sell down their FX holdings as the value of USD fell beyond their cut loss limits.

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