Inflation ( CCPI)0.9% (May 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.39%
12M T-Bill Rate9.90%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.10% / 11.25%
Reserves $5.4Bn (May 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

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.


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