Rs 66B Treasuries up for repayment by Friday

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Central Bank of Sri Lanka (CBSL), on behalf of the Government of Sri Lanka (GoSL), will have to cough up Rs 65,901 million by next Friday (3 June) to repay Treasury (T) Bill creditors whose payments are due on that day.

Their splits are Rs 30,327 million 91-day maturities; Rs 35,474 million 182-day maturities and Rs 100 million 364-day maturities, respectively. T Bill maturities held by CBSL and which repayments are also due by the coming Friday are unknown as CBSL doesn’t make privy such data.

CBSL, the steward of GoSL debt, generally repays such creditors, by once more borrowing from the market, by reissuing
T Bills to it. Normally, CBSL announces such sales/reissues of T Bills, on a weekly basis, on Fridays, where those reissues in turn take place on the coming Wednesdays. But at the time of writing on Friday (27 May) CBSL was yet to make such announcements.

Issuing of T Bills and T Bonds is a popular way that GoSL raises money from the domestic market to meet its monetary needs. Investing in T Bills and T Bonds is risk free, because, in the event GoSL is unable to repay such creditors, CBSL is mandated to print demand pull inflationary money and repay them. Money printing is the sole, mandated prerogative of the CBSL.

By Paneetha Ameresekere