CBSL to issue Rs 66,000M worth T-Bills
By Paneetha Ameresekere
Central Bank of Sri Lanka (CBSL) last Friday (3 December) announced the issuance of Rs 66,000 million worth of Treasury (T) Bills on Wednesday (8 December) to meet Rs 50,880 million worth of maturing Treasury (T) Bills held by the market which will have to be repaid by Friday (10 December).
The splits of Wednesday’s T-Bill auction are Rs 18,000 million worth of 91-day maturities and Rs 24,000 million each of 182-day and 364-day maturities.
Meanwhile, the splits of the Rs 50,880 million worth of T-Bill maturities held by the market and which will have to be repaid by Friday are Rs 29,869 million worth of 91-day maturities, Rs 3,439 million worth of 182-day maturities and Rs 17,572 million worth of 364-day maturities.
However, T-Bill maturities held by the CBSL and which will also have to be repaid to it by Friday are unknown, as CBSL doesn’t give the splits of its T-Bill and T-Bond holdings. The face value of CBSL’s total T-Bill and T-Bond holdings as at last Thursday was Rs 1,801,079.88 million (Rs 1.8011 trillion). CBSL also doesn’t give splits of its T-Bill and T-Bond holdings, separately.
Issuing of T-Bills and T-Bonds is a popular way that the Government of Sri Lanka (GoSL) resorts to, to raise money from the market to meet its monetary commitments. Investments in T-Bills and T-Bonds are risk free because in the event GoSL is unable to pay such creditors, CBSL is mandated to print demand-pull inflationary money or money printing and repay such creditors. CBSL is the sole mandated authority to print money in the country. Money printing is equivalent to the face value of CBSL’s T-Bill and T-Bond holdings. CBSL is the steward of GoSL debt.