The country’s demand-pull inflationary face value money printing (FVMP) debt increased by Rs 16,818 million and its FVMP debt as a whole by 0.74 per cent (Rs 23,907.52 million) to reach its second highest figure of Rs 3,243,350.41 million (Rs 3.2434 trillion) on Friday (9) due to a sustained lack of revenue. The highest FVMP debt thus far achieved took place on 8 July 2022 with a value of Rs 3.2502 trillion recorded.
Meanwhile, the country’s foreign reserves haemorrhaged for the fourth consecutive market day to Friday, with Friday’s figure alone being USD 19.59 million (Rs 7,089.52 million), thereby increasing such bleeding to USD 49.73 million(Rs 17,985.52 million) in the reference period, led by the settlement of payments made for ‘essential’ imports.
The increase in Government’sat least theoretical MP borrowing costs (BCs), relative to the increase in its FVMP debt, accelerated by 6.02 per cent (Rs 9,076.62 million) to Rs 159,727.96 million on Friday due to selling pressure of Treasury (T) Bills and T Bonds in secondary market trading, to reinvest in today’s (12) Rs 75 billion T Bond auction with expectations of higher yields due to record high inflation.
Market was short for a record 248 market days to Friday, with this shortfall increasing by 2.89 per cent (Rs 16,818 million) to Rs 565,399 million, thereby causing sustained rate pressure. GoSL’s FVMP debt has been over three trillion rupees for a record consecutive 46 market days to Friday. Also, GoSL’s highest to the 251st highest FVMP debt has been recorded in the 251 consecutive market days to Friday.
By Paneetha Ameresekere