Rs 67B T Bill repayments due

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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 67,393 million to the market by coming Friday (16 September).

Their splits are Rs 67,087 million worth of 91-day maturities, Rs 20 million worth 182-day maturities and Rs 286 million worth 364-day maturities. Such repayable maturities due to the CBSL are however unknown as CBSL doesn’t make privy such details. CBSL is the steward of GoSL debt.

 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 held on a Wednesday and auction calls made on the preceding Friday. At the time of writing, CBSL had yet to make such a call on Friday (9).

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.

By Paneetha Ameresekere