Credit to govt from banking system increased by Rs. 288.4 bn in July 2023

Net credit to the government from the banking system increased by Rs. 288.4 bn in July 2023, according to the Weekly Economic Indicators report of the Central Bank of Sri Lanka.Further, outstanding credit to public corporations increased by Rs. 1.0 bn in July 2023 while outstanding credit extended to the private sector increased by Rs. 13.2 bn in July 2023, the report stated.

The reserve money decreased compared to the previous week mainly due to the decrease in the deposits held by the commercial banks with the Central Bank.The total outstanding market liquidity was a surplus of Rs. 10.500 bn by 01st September 2023, compared to a deficit of Rs. 23.553 bn by the end of last week.

It further stated: “By 01st September 2023, the All Share Price Index (ASPI) decreased by 0.45 per cent to 11,156.42 points and the S&P SL 20 Index decreased by 0.51 per cent to 3,153.65 points, compared to the index values of last week.”

“Treasury Bill primary market yield rates and secondary market yield rates of Treasury Bills and Treasury Bonds increased during this week compared to the previous week.”

“The outstanding stock of T Bills and T Bonds held by foreigners increased by 2.07 per cent in rupee terms during the reporting week compared to the week before.”

“The weekly T Bill auction was oversubscribed by 1.46 times and T Bond auction was oversubscribed by 1.60 during the reporting week.”

“The total volume of secondary market transactions in T Bills and T Bonds has decreased by 5.11 per cent in the reporting week compared to the week before.”

“The gross official reserves were provisionally estimated at US dollars 3,765 mn as at end July 2023 including the PBOC swap equivalent to around US dollars 1.3 bn, which is subject to conditionalities on usability.”

The average price of tea (in the Colombo auction) decreased to US dollars 3.18 per kg in July 2023 from US dollars 4.08 per kg in July 2022.