Inflation ( CCPI)4.0% (Aug 2023)
GDP-3.1% (2Q 2023)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate18.12%
12M T-Bill Rate13.32%
2Y T-Bond Rate14.60%/ 15.00%
4Y T-Bond Rate14.50% / 14.90%
USD/LKR322/323
Reserves $3.60Bn (Aug 2023)
Cum. Trade Deficit $2,623 Mn (July 2023 cumulative)
Cum. Fiscal DeficitLKR 1,243 Bn (June 2023)

DDR cleared a risk premium close to 15% from the secondary bond market

Interest RatesJul 4, 2023
DDR cleared a risk premium close to 15% from the secondary bond market

After DDR was announced and approved, the risk premium added to domestic debt was eased off with the yield coming down by around 15% from 30% which was seen at the peak of the yield at the end of September 2022. A large portion of the DDR hit will be borne by CBSL & CBSL managed EPF with minimum impact to market in the short-run.

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