Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.14%
12M T-Bill Rate9.95%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.60% / 11.70%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

World’s Riskiest Sovereign Bonds showed Unexpected Recovery along with SRILAN

InternationalJun 19, 2023
World’s Riskiest Sovereign Bonds showed Unexpected Recovery along with SRILAN

Bloomberg reported that Junk-rated government dollar bonds from El Salvador to Nigeria and Turkey are outperforming in June as traders take on risky bets in exchange for out-sized returns. The number of emerging government defaults, meantime, has risen to a record resulting in frantic efforts to accelerate the sovereign-debt restructuring process.

Sri Lanka is also optimistic about reaching fair restructuring parameters that will benefit locals and as well externals. Sri Lanka’s sovereign bond principal outstanding is USD 12.55 Bn and interest due is USD 989Mn as at end of May.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

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.