Government of Sri Lanka’s (GoSL’s) demand-pull inflationary face value money printing (FVMP) debt increased by Rs 6,223 million and on the whole by Rs 7,752 million (0.28 per cent) to 2,762,080.18 million (Rs 2.7621 trillion) yesterday due to a sustained lack of revenue, Central Bank of Sri Lanka (CBSL) data from yesterday showed.
Led by making ‘essential’ imports, the country’s foreign reserves were drained by US$ 4.19 million (Rs 1,529 million) yesterday.
GoSL’s MP borrowing costs (BCs) increased by 3.03 per cent (Rs 3,688.37 million) to Rs 125,538.80 million yesterday due to panic selling of Treasury (T) Bonds and T Bills in secondary market trading because of sustained political uncertainty.
Market’s net shortfall decreased Rs 6,223 million (0.89 per cent) to Rs 690,996 million yesterday, nonetheless causing perennial rate pressure.
GoSL’s FVMP debt has been over Rs 2 trillion for a record 74 market days to yesterday. The market has been short for a record 164 days to yesterday. GoSL’s highest to the 168th highest FVMP debt has been registered for a record 168 market days to yesterday. GoSL’s FVMP debt is equivalent to the totality of CBSL’s T Bill and T Bond holdings. MP is the exclusive right of CBSL.
By Paneetha Ameresekere