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%
USD/LKR313/314
Reserves $4.5Bn (Jan 2024)
Cum. Trade Deficit $4,866 Mn (Dec 2023 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

Interest rate is at one year low after rate plunged at primary auction today

Interest RatesApr 4, 2023
Interest rate is at one year low after rate plunged at primary auction today

The T-Bill rate fell substantially at the primary auction after CBSL said the domestic debt restructuring will not have any impact on T-bills. 91 days T-Bill fell by 1.87%, 182 days by 1.69% and 364 days fell by 1.94%. CBSL managed to sell the target volume and avoid money printing.

91Days T-Bill rate down by 8.5% and the 364Days T-bill rate down by 7.0%, from Dec 2022. CBSL raised benched marked interest rate in last April by 7% just after declaring the international debt default, where the secondary market interest rate adjusted by 13.50% to 15.25%.

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The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.