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)

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

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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