Reserves bleed $149M

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The country’s foreign reserves haemorrhaged by US$148.53 million (Rs 53,613.37 million) on Friday (19 August) led by the settlement of payments for ‘essential’ imports.

 Government of Sri Lanka’s (GoSL’s) at least theoretical money printing borrowing costs (MPBCs) sharply rose by 11.95 per cent (Rs 14,380.24 million) to Rs 134,707.27 million on Friday led by selling pressure of Treasury (T) Bills and T Bonds in secondary market trading to reinvest in Wednesday’s (24 August) Rs 90 billion T Bill auction with expectations of higher yields due to inflation being at a record high 58.9 per cent in June. Last month’s inflationary data will be released today (Monday, 22 August).  

  GoSL’s face value (FV) MP debt increased by 0.33 per cent (Rs 10,445.37 million) to Rs 3,152,515.37 million (Rs 3.1525 trillion) on Friday due to a persistent lack of revenue. However, this increase was non-demand pull inflationary as it was used to meet the above external commitment.  GoSL’s FVMP debt has been over Rs three trillion for a record consecutive 31 market days to Friday.  Also, GoSL’s highest to the 236th highest FVMP debt has been registered for a record 236 market days to Friday. Market was short for a record 233 market days to Friday,  with this shortfall increasing by 7.30 per cent (Rs 43,168 million) to Rs 634,381 million, thereby causing  sustained rate pressure.

By Paneetha Ameresekere