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)

T-Bill rates fell across all the maturities letting CBSL's SSR cut in effect

Interest RatesAug 16, 2023
T-Bill rates fell across all the maturities letting CBSL's SSR cut in effect

CBSL is persuading market interest rates to reduce through improving capital market liquidity. It announced a 2% SRR cut which is estimated to inject LKR 200Bn today, allowing banks to utilize those funds for their investments, which were yielding 0% previously.

The current interest rate easing cycle is expected to remain throughout this year as lower inflation and a slow phase of the bank’s credits. In the short-run downward adjustment of the interest rate is important to achieve positive economic growth by next year.

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.