Inflation ( CCPI)25.2% (May 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.65%
12M T-Bill Rate22.91%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
USD/LKR292/293
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $1,443Mn (April 2023 cumulative)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

T-bill rate rise further as the uncertainty over domestics debt restructuring balloon

Interest RatesApr 26, 2023
T-bill rate rise further as the uncertainty over domestics debt restructuring balloon
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T-Bill rate across all the maturities increased for the third consecutive week as the domestic debt restructuring (DDR) is imminent and expected to disturb the smooth decline of the short-term yields. But CBSL managed to sell the target amount of LKR 115Bn while selling a substantial amount in 364 days T-Bills.

Seasonal liquidity shortfall also has fueled the upward trend of the yields and CBSL helped to pump LKR 46Bn to market via term Rev Repos to tackle the liquidity constraints. This continuous rate incase is coming at a time that May inflation is expected to fall substantially.

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