Inflation ( CCPI)3.4% (Nov 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate14.67%
12M T-Bill Rate12.88%
2Y T-Bond Rate13.95%/ 14.05%
4Y T-Bond Rate14.20% / 14.30%
Reserves $3.58Bn (Nov 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

Overall interest rate fell at T-bill auction by more than 1.50% after IMF optimism

Interest RatesMar 22, 2023
Overall interest rate fell at T-bill auction by more than 1.50% after IMF optimism

CBSL raised LKR 125Bn while reducing the borrowing cost for the government at the primary auction held today. The T-bill rates are now closing toward the pre-crisis level (before CBSL rate hikes). Reduction of the government borrowing cost is essential to minimize the fiscal deficit, which has ballooned due to government interest costs.

IMF usually advises excluding T-Bill (held by the public) from domestic debt restructuring. But in Sri Lanka, IMF has proposed to restructure the T-Bills held by CBSL. Most probably it will execute as reprofile the maturities than principle hair-cut.


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