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%
USD/LKR304/305
Reserves $5.4Bn (May 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

Prime lending rate of the two major state lenders declined substantially

Interest RatesSep 17, 2023
Prime lending rate of the two major state lenders declined substantially

The lower lending rate is essential for the economy to tune banks to positive growth territory. AWPLR increased marginally last week from 15.14% to 15.21% but the largest two-state lender’s (BOC, PB) individual AWPLR fell by 1% and 1.8% respectively. CBSL has given a benchmark to bring it down to 13.50% by the end of October.

The other two largest private lenders (COM, HNB) are currently providing loans at the lowest AWPLR, as state lenders are still struggling to pull the rate down due to the exposure of the SOEs.

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