GoSL has to repay only Rs 7.6 billion maturities by Friday

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Central Bank of Sri Lanka (CBSL) on behalf of the Government of Sri Lanka (GoSL) will have to repay one of the lowest Treasury T Bill maturities due to the market this coming Friday (19 August), a total sum of a mere Rs 7,618 million only.

Their splits comprise Rs 6,416 million 91-day maturities and Rs 1,265 million 182-day maturities only. There are no 364-day maturities repayable to the market by the coming Friday.

The reason behind such a low figure is that only Rs 6,416 million 91-day maturities are repayable to the market by the coming Friday. In contrast, in the previous weeks, months and even years, such repayments due used to be in multiples of tens, in millions of rupees, compared to a fraction of Rs 10 million due by next Friday.

For instance, the Rs 6,416 million repayable by next Friday amounts to a mere 12.83 per cent of the original offer of Rs 50,000 million of 91-day maturities offered to the market at the 9 May 2022, weekly T Bill auction. Such a low amount, in contrast to the over 100 per cent sold to the market, time and time again since the early 2020s, was an attempt by CBSL to rein in yield pressure amidst record high inflation. Meanwhile, such repayments also due to the CBSL by the coming Friday are however unknown, as CBSL doesn’t make privy such data.

Usually such repayments are made by CBSL by calling for new
T Bill auctions,  held, generally  in the coming Wednesdays, with such auction calls made on CBSL’s website on Fridays. However, at the time of writing on Friday, CBSL hadn’t made such an auction call.

By Paneetha Ameresekere