Central Bank of Sri Lanka (CBSL) on behalf of the Government of Sri Lanka (GoSL) will have to repay the market Rs 66,751 million worth of maturing Treasury (T) Bills by the coming Friday (15). Their splits comprise Rs 48,431 million worth of 91 day maturities, Rs 790 million (182-day maturities) and Rs 17,530 million (364 day maturities), respectively. Maturing T-Bills held by CBSL and which are also repayable by the coming Friday are however, unknown as CBSL doesn’t make privy such information.
Meanwhile, to repay a greater part of such maturities, CBSL, on Friday (8), called for a new T-Bill auction for Rs 65,000 million worth of T-Bills to be held in the coming Tuesday (12), the splits of which are Rs 32,000 million worth of 91-day maturities and Rs 16, 500 million each of 182 and 364-day maturities, respectively. Settlement of this auction is on the coming Friday.
Issuing of T-Bills and T-Bonds is a popular way that GoSL raises money domestically to meet its monetary needs. 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.
By Paneetha Ameresekere