Rs 65B T-Bills mature on Friday

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Central Bank of Sri Lanka (CBSL), on behalf of the Government of Sri Lanka (GoSL), will have to repay Rs 64,665 million worth of maturing Treasury (T) Bills to the market by the coming Friday (24), CBSL data showed.

Their splits comprise 91-day maturities (Rs 54,832 million), 182-day maturities (Rs 9,748 million) and 364-day maturities (Rs 64,665 million), respectively. The values of maturing T-Bills held by CBSL and which are also repayable by the coming Friday are unknown as CBSL doesn’t make privy such data.

Generally, CBSL repays such debt, by “once more” borrowing from the market, via calling for fresh, weekly T-Bill auctions, where such calls are normally made on Fridays, for auctions to be held on the coming Wednesdays. CBSL advertises for such auction calls on its website on Fridays. At the time of writing no such auction call has been made.

Issuing of T Bills and T Bonds is a popular way resorted to by the GoSL to raise money to meet its monetary needs. Investments 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. CBSL is the only mandated authority to print money (rupees) in Sri Lanka.

By Paneetha Ameresekere