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)

US interest rates stay in high while Sri Lanka expected to reduce the rates

InternationalOct 4, 2023
US interest rates stay in high while Sri Lanka expected to reduce the rates

US yield on Bonds (10Y) are highest since August 2007 and most analysts expect the FED will raise interest rates at least one more time, in November. The yield spread between short-term SL T-Bills and US short-term exhibits sufficient phase to adjust than longer-end bonds.

Sri Lanka’s currency depreciated by 45% in 2022 and appreciated by 13% in 2023 so far. A stable exchange would motivate foreigners to keep their current investment in domestic bonds which is around USD 495Mn, but encouragement for new investment will be questionable.

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