Inflation ( CCPI)0.9% (May 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.39%
12M T-Bill Rate9.90%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.10% / 11.25%
Reserves $5.4Bn (May 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

CBSL moved to an easing cycle with 250 basis point reduction of its policy interest rate

Interest RatesJun 1, 2023
CBSL moved to an easing cycle with 250 basis point reduction of its policy interest rate

Market expectation was that it’ll take a much longer time for CBSL to move to a monetary easing. But CBSL announced a substantial interest rate reduction of 250 basis points today morning. Inflation had a sharp fall in May and experts believe it will follow a similar drop in June as well.

This early action taken by CBSL depicts the serious concern CBSL has on rising borrowing costs for the government, along with the positive impact an early move of an interest rate reduction prompt to transform the economy to positive a territory at least by 2024.


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