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%
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

CBSL hikes interest rate at a surprise move

Interest RatesMar 3, 2023
CBSL hikes interest rate at a surprise move

CBSL raised benchmark interest rate s by 1.0% (14.50% to 15.5%). In the statement, CBSL stated that “Given the necessity of fulfilling all the ‘prior actions’ in order to move forward with the finalization of the IMF arrangement, the Board and the IMF reached consensus to raise the policy interest rates, in a smaller magnitude”

CBSL says it had purchased FX from the market amounted to USD 300Mn during the last few days, which is also expected to improve the LKR liquidity by over LKR 100Bn. It indicates that despite the policy rate increase of 1%, CBSL does not expect the secondary market interest rate to increase.

It further implies that, IMF will approve the rescue package during this month, which will help to improve the confidence further.


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