Market’s net shortfall increased by 2.17 per cent (Rs 14,442 million) to Rs 679,850 million, led by a liquidity haemorrhage of Rs 23,886 million, thereby bleeding the country’s foreign reserves by US$ 66.30 million during the course of trading on 9 June, dominated by the settlement of making payments for the import of ‘essential’ goods. Conversions are based on the administered benchmark ‘spot’ value of Rs 360.28 to the US dollar as at Tuesday.
Government of Sri Lanka’s (GoSL’s) face value money printing (FVMP) debt increased by 0.33 per cent (Rs 9,444 million) to Rs 2,846,113.81 million (Rs 2.8461 trillion) yesterday due to the sustained lack of revenue. However, yesterday’s increase was non-demand pull inflationary, as it was used to meet external commitments such as paying for ‘essential’ imports.
However, GoSL’s MP borrowing costs (BCs) fell for the fourth consecutive market day to yesterday, declining by 0.82 per cent (Rs 903.86 million) to Rs 109,050.37 million due to sustained buying pressure of riskless, low returns Treasury (T) Bills and T-Bonds in secondary market trading because of perennial uncertainty, rather than invest in the high returns private sector, the engine of growth.
GoSL’s FVMP debt has been over Rs 2 trillion for a record 93 consecutive market days to yesterday due to an almost perennial lack of revenue. The market has been short for a record 183 market days to yesterday. GoSL’s highest to the 187th highest FVMP debt has been registered for a record 187 market days to yesterday.
By Paneetha Ameresekere