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Sri Lanka government deposits Rs1.1trillion in state banks by end 2Q

ECONOMYNEXT – Sri Lanka’s government has deposited 1.1 trillion rupees in state banks by end of the second quarter of 2025, a Financial Stability Report issued by the central bank has revealed. “Of this, a significant share of 80.7 percent was concentrated in term deposits maturing within one year, while the remainder was maintained as on-demand,” the central bank said. “The absence of deposits with maturities beyond one year highlights the short term nature of these balances. “Although such deposits provide a substantial funding base for the banks, their maturity profile highlights potential liquidity risk in the event of sudden…

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