Central Bank of Sri Lanka (CBSL), on behalf of the Government of Sri Lanka (GoSL), will have to repay Rs 66,554 million worth of maturing Treasury (T) Bills owed to the market this coming Friday (8 July), CBSL data showed.
The splits of the Rs 66,554 million worth of T Bill maturities repayable to the market by the coming Friday are Rs 63,411 million 91-day maturities, Rs 2,413 million 182-day maturities and Rs 730 million 364-day maturities, respectively. However, T Bill maturities held by the CBSL and which are also repayable to it by the coming Friday are unknown as CBSL doesn’t make privy such data.
Issuing of T Bills and T Bonds is a popular way that GoSL raises money domestically to meet its monetary needs. T Bill auctions are generally held weekly, with such auctions held on a Wednesday and auction calls made on the preceding Friday. At the time of writing, CBSL, the steward of GoSL debt, had yet to make such a call on Friday (1 July).
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 prerogative of CBSL.
By Paneetha Ameresekere