GoSL has to honour Rs 71.4B T Bill maturities by next Friday


By Paneetha Ameresekere

The Government of Sri Lanka (GoSL) will have to repay maturing Treasury  Bills totalling Rs 71,389 million and to the market by next Friday (8 April).

The splits of those maturing T Bills are Rs 71,089 million worth of 91-day maturities, Rs 100 million in 182-day maturities and Rs 200 million 364-day maturities, respectively.

Usually, GoSL repays such debt by indulging in further borrowings via the T Bill market. These borrowings are made via weekly T Bill auctions held on Wednesdays. Central Bank of Sri Lanka (CBSL), the steward of GoSL makes the relevant auction announcements in respect of such issuances on the preceding Friday.

However, maturing T Bills held by the CBSL and repayable to it also by next Friday are unknown as CBSL doesn’t make public such credit details.

Issuing of T Bills and T Bonds is a popular modus operandi indulged by the GoSL to raise money domestically to meet its domestic obligations.  Investing in T Bills and T Bonds are risk free, because in the event GoSL is unable to honour such debt, CBSL is mandated to print demand pull inflationary money and repay such creditors. Money printing is the sole and mandated prerogative of CBSL.