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)

50 basis point rate cut is expected at 3rd monetary policy review

Opinion pollsMay 25, 2024
50 basis point rate cut is expected at 3rd monetary policy review

To boost Sri Lanka's economy, which is still adjusting to higher price levels after experiencing nearly 70% inflation 18 months ago, maintaining a low interest rate is crucial. Historically, the average real return has been around 3.5% with an inflation rate of 4% to 6%. Currently, the real return is approximately 7.00%.

To accelerate economic growth beyond the typical pace, it is essential for Sri Lanka to sustain a lower interest rate structure for an extended period. This will help stabilize the economy, promote investment, and support recovery efforts.


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