CBSL to issue Rs 92.5 T Bills to repay Rs 77.3B maturities

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The Government of Sri Lanka (GoSL) will have to repay Rs 77,320 million worth of maturing Treasury (T) Bills by the coming Friday (13), Central Bank of Sri Lanka (CBSL) data showed.

Their splits are 91-day maturities Rs 76,700 million; 182-day maturities Rs 125 million and 364-day maturities Rs 495 million. However, maturing T Bills held by the CBSL and which will also have to be repaid to it by next Friday are unknown as CBSL doesn’t make privy such data.

To meet and repay these maturities, CBSL, the steward of GoSL debt, on Friday (6) announced that it will be holding a T Bill auction for Rs 92,500 the coming Wednesday (11) with settlement on the coming Friday.

The splits of the coming Wednesday’s auction are Rs 46,500 million 91-day maturities; Rs 23,000 million 182-day maturities and Rs 23,000 million 364-day maturities respectively. 

Issuing of T Bills and T Bonds is a popular way that GoSL raises money from the domestic market to meet its monetary requirements.  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 prerogative of CBSL.

By Paneetha Ameresekere