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%
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

CBSL continues to buy foreign currency from the market in September

Exchange RateOct 13, 2023
CBSL continues to buy foreign currency from the market in September

(Corrected) CBSL purchased USD 83 Mn in September, resulting in USD 1.727Bn net purchases for this year so far. Last year, CBSL sold USD 585Mn to manage the exchange rate. CBSLs’ involvement is visible in the FX market whenever abnormal volatility prevails.

IMF has been watchful of CBSL’s intervention in the FX market as IMF advises buying FX from the market to build foreign reserves rather than defending the currency like in the past. Tourism and worker remittances are growing at a healthy rate generating close to USD 700 to 800Mn per month, while the trade deficit is been curtailed to less than USD 500Mn per month. FX debt service is around USD 100 to 150Mn per month, resulting in balancing off the current account without much trouble.


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