Inflationary MP up Rs 4B

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Government of Sri Lanka’s (GoSL) demand-pull inflationary face value money printing (FVMP) debt increased by Rs 3,985 million due to  a sustained lack of revenue, thereby increasing GoSL’s FVMP debt as a whole by 0.14 per cent to Rs 2,756,855.37 million yesterday.

 GoSL’s at least theoretical MP borrowing costs (BC) increased by 6.36 per cent (Rs7,482.10million) to Rs 125,166.03 million yesterday due to panic selling of Treasury (T) Bills and T Bonds in secondary market trading due to the uncertainty caused by today’s ‘hartal’.

The country’s foreign reserves were uplift by US$ 2.77 million (Rs 947 million) led by net foreign inflows yesterday. Conversions are based on the administered benchmark ‘spot’ rate of Rs 341.85 to the US dollar last Friday (29 April).

Money market was short for a record consecutive 159 market days to yesterday, though this shortfall fell by 0.69 per cent
(Rs 4,932 million) to Rs 707,554 million, nonetheless causing almost perennial rate pressure, CBSL data showed.

GoSL’s FVMP debt has been over two trillion rupees for a record consecutive 69 market days to yesterday. GoSL’s highest to the 163rd highest FVMP debt has been registered in the 162 consecutive market days to yesterday, though not necessarily in a particular order.

By Paneetha Ameresekere