GoSL has to repay Rs 78B maturing T-Bills on 17 June

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Central Bank of Sri Lanka (CBSL), on behalf of the Government of Sri Lanka (GoSL), will have to repay maturing Treasury (T) Bills of Rs 77,878 million in total value to the market by the coming Friday (17 June), CBSL data showed.

Their splits are Rs 54,808 million worth of 91-day maturities, Rs 22,795 million worth of 182-day maturities and Rs 275 million worth of 364-day maturities, respectively. However, T-Bill maturities held by the CBSL and which will also have to be repaid by the coming Friday are unknown as CBSL doesn’t make public such statistics.

Issuing of T Bills and T Bonds is a popular method resorted to by GoSL to raise money domestically to meet its monetary needs. CBSL, the steward of GoSL, generally raises such money weekly on Wednesdays, where the auction call in this connection is generally made on Fridays, on CBSL’s website. At the time of writing on Friday (10 June), CBSL hasn’t posted its ‘announcement details’ pertaining to the coming week’s T Bill auction.

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.

By Paneetha Ameresekere