Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.55%
12M T-Bill Rate10.07%
2Y T-Bond Rate10.55%/ 10.65%
4Y T-Bond Rate11.80% / 11.85%
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Treasury Bill rates adjusted beyond the CBSL policy rate adjustment

Interest RatesJun 7, 2023
Treasury Bill rates adjusted beyond the CBSL policy rate adjustment

364 days maturing T-Bill rates fell 381 basis points and 182 days fell by 339 basis points at the first primary auction after the CBSL rate cut on 1st June 2023. Investors had sent out over LKR 300Bn worth of bids into the auction, mostly for 364 days.

The sharp decline in the primary market rate and the bidding pattern indicates that the market expects further reductions in the interest rate in the near future. The absence of the T-Bond auctions would also have tempted the long-term investors cum traders to buy more 364Day T-bills with excess liquidity.


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