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%
Reserves $3.60Bn (Aug 2023)
Cum. Trade Deficit $2,623 Mn (July 2023 cumulative)
Cum. Fiscal DeficitLKR 1,243 Bn (June 2023)

T-Bill rate fell marginally while CBSL sold over LKR 150Bn at the primary auction

Interest RatesJul 26, 2023
T-Bill rate fell marginally while CBSL sold over LKR 150Bn at the primary auction

CBSL was successful in selling over LKR 150Bn T-Bills at the primary auction while rates fell marginally across all the maturities after it jumped in the previous two auctions. Last two auctions were undersubscribed which prompted CBSL to print money. CBSL has not announced a T-Bond auction yet in line with its T-Bond coupon maturities fall due on 1st August.

The yields in the T-Bond auction conducted after announcing DDR surprisingly jumped compared with the market rate. It may have prevented CBSL to delay issuing further T-Bonds and try to collect funds via T-Bills.


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