Money circulating in the economy expanded by 15.4 per cent

 

2022/01/3

 

Credit to govt from banking system increased by Rs. 151.2 bn

Broad money (M2b) has expanded by 15.4 per cent, on a Y-o-Y basis, in November 2021, according to the Weekly Economic Indicators issued by the Central Bank of Sri Lanka.

“Net Credit to the government from the banking system increased by Rs. 151.2 bn in November 2021,” it said.

According to the report, the unemployment rate increased slightly to 5.2 per cent in the third quarter of 2021 from 5.1 per cent in the second quarter of 2021.

The report also showed that labour force participation rate (LFPR) decreased to 49.5 per cent in the third quarter of 2021 from 49.8 per cent in the second quarter of 2021.

Meanwhile, outstanding credit to public corporations had decreased by Rs. 9.0 bn in November 2021.

Outstanding credit extended to the private sector had increased by Rs. 60.5 bn in November 2021.

The report further stated,” The reserve money decreased compared to the previous week mainly due to the decrease in deposits held by the commercial banks with the Central Bank.’

“The total outstanding market liquidity was a deficit of Rs. 466.248 bn by end of this week, compared to a deficit of Rs. 455.549 bn by the end of last week.”

“By 31st December 2021, the All Share Price Index (ASPI) increased by 1.29 per cent to 12,226.01 points and the S&P SL 20 Index decreased by 0.48 per cent to 4,233.25 points, compared to the index values of last week.”

“During the year up to 31st December 2021, the Sri Lankan rupee depreciated against the US dollar by 7.0 per cent. Given the cross currency exchange rate movements, the Sri Lankan rupee appreciated against the Japanese yen by 3.8 per cent and the Euro by 1.1 per cent while depreciating against the pound sterling by 6.0 per cent and the Indian rupee by 5.5 per cent during this period.”

The Central Bank last week announced that official reserves had reached over US dollars 3.1 billion.