CBSL has to repay maturing Rs 67B Treasury Bills

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Central Bank of Sri Lanka (CBSL) on behalf of the Government of Sri Lanka (GoSL) will have to repay a total of Rs 66,561 million worth of maturing Treasury (T) Bills to the market by the coming Friday (26).

Of this value, CBSL has divulged the tenures of Rs 60,561 million worth maturing T Bills only. In respect of the balance Rs 6,000 million worth of maturities repayable to the market, CBSL, however, they haven’t divulged their tenure/s.

Meanwhile, the tenures of the Rs 60,561 million maturities are Rs 60,116 million worth of 91-day maturities, Rs 245 million (182-day maturities) and Rs 200 million (364-day maturities). However, T Bill repayments due to CBSL by the coming Friday are unknown as CBSL doesn’t also divulge such figures.

 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 normally 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 (19 August). Settlement of such auctions are also generally on Fridays.

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. CBSL is also the steward of GoSL debt.

By Paneetha Ameresekere