Rs 57,345M T Bill maturities due

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Central Bank of Sri Lanka (CBSL) on behalf of the Government of Sri Lanka (GoSL) will have to repay
Rs 57,345 million worth of Treasury (T) Bill maturities due to the market this coming Friday (30), CBSL data showed.

However, maturing T Bills held by CBSL and which also will have to be repaid by 30 September 2022 is unknown as CBSL doesn’t make such information privy.

The known tenure splits of those maturities which will have to be repaid to the market by the coming Friday are 91-day tenures Rs 44,334 million, 182-day five million rupees and 364-day Rs 2,706 million respectively. Another Rs 10,300 million worth of T Bill maturities of unknown tenure/s will also have to be repaid to the market by 30 September.

To repay such maturities CBSL has called for a
Rs 85,000 million T Bill auction for the coming Wednesday (28) with settlement on the coming Friday (30), the splits of which are 91 days (Rs 35,000 million), 182 days (Rs 28,000 million) and 364 days (Rs 22,000 million).

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. 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