Rs 41B maturing T Bills up for repayment

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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 amounting to Rs 41,295 million to the market by the coming Friday (2 September), CBSL data showed.

However, maturing T Bills held by the CBSL and which will have to be repaid to it also by the coming Friday by GoSL are unknown as CBSL doesn’t divulge such details. CBSL is the steward of GoSL debt. Meanwhile, the splits of the tenures repayable to the market by the coming Friday by GoSL/CBSL are Rs 37,199 million 91-day maturities, Rs 4,056 million 182-day maturities  and Rs 40 million 364-day maturities.

In related developments, CBSL has called for a T Bond auction for Rs 40 billion for the coming Tuesday. Their splits are Rs 15 billion 2025 maturities and Rs 25 billion 2031 maturities respectively. Issuing of Treasuries is a popular way GoSL raises money from the domestic market to meet its monetary needs. Investing in Treasuries is 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 the CBSL.

By Paneetha Ameresekere