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)

Further downward adjustment in the longer end of the Government Securities Yield Curve

Interest RatesAug 11, 2023
Further downward adjustment in the longer end of the Government Securities Yield Curve

Improved liquidity in the money market and possibly further easing of the monetary policy in the next few months pulled down the yields of the longer-end of the government securities during this week. But unwinding of massive T-Bond portfolios of private holders would be a challenge under limited EPF participations.

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