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%
Reserves $4.5Bn (Jan 2024)
Cum. Trade Deficit $4,866 Mn (Dec 2023 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

Treasury Bill rates fell substantially with improvement of LKR liquidity

Interest RatesMar 8, 2023
Treasury Bill rates fell substantially with improvement of LKR liquidity

91Days T-bill rate fell from 29.59% to 28.75%, while 182Days T-Bill fell from 28.64% to 27.77%, and 364Days T-Bill too fell from 27.64% to 26.43%. CBSL managed to sell the required amount of T-Bills to the market amounted to LKR 85Bn.

Last week CBSL increased the policy rate by 1% to neutralize the inflationary pressure generated through increased LKR liquidity in the market as CBSL bought over USD 300Mn from the forex market.

CBSL raised its policy rate by 7.0% in April 2022, where the T-bill rate jumped from 14% to 23% immediately. Then CBSL applied another rate hike of 1%, resulting T-Bill rates jumping from 23% to 28% immediately. This including in the short-term yield curve fueled the requirement for a domestic debt restructuring as the cost refinancing increased at a faster phase during the period under consideration.


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