Inflation ( CCPI)0.9% (March 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.90%
12M T-Bill Rate10.21%
2Y T-Bond Rate10.85%/ 11.00%
4Y T-Bond Rate12.10% / 12.20%
USD/LKR298/299
Reserves $4.951Bn (March 2024)
Cum. Trade Deficit $860 Mn (Feb 2024 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

Banks deposits rates and lending rates are falling

Interest RatesApr 9, 2023
Banks deposits rates and lending rates are falling

In line with the government securities rate reduction, the other interest rates such as bank deposit rates and lending rates have started to come down. Banks’ deposit rates peaked in November and have fallen by 2%. Lending rates peaked in December, which has fallen by 1% by end of February.

Banks prompt to adjust their liabilities ( Deposits) to their assets (lending), which will help them to maintain a better next spread.

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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.