GoSL has to repay Rs 82 Billion maturing T Bills

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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 totalling Rs 81,832 million to the market by the coming Friday (29 July), CBSL data showed. Their splits are 91-day maturities (Rs 78,752 million); 182-day maturities (Rs 1,430 million) and 364-day maturities (Rs 1,650 million) respectively. However, maturing T Bills held by CBSL and repayable to it by the coming Friday is unknown as CBSL doesn’t make privy such information.

Generally, CBSL repays such debt by once more borrowing from the market by reissuing T Bills to the same. Such issuances/reissuances are normally made in the coming Wednesday’s (27 July) T Bill auction with announcement of such issuances/reissuances made on CBSL’s website on Friday (22 July). However, at the time of writing CBSL hasn’t made mention of such an issuance on their website. Issuing of T Bills and T Bonds is a popular way that GoSL raises money from the domestic market to meet its needs. Investments in T Bonds and T Bills 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, mandated prerogative of CBSL. CBSL is the steward of GoSL debt.

By Paneetha Ameresekere