Uncertainty shrinks GoSL’s MPBCs
By Paneetha Ameresekere
Uncertainty caused Government of Sri Lanka’s (GoSL’s) money printing borrowing costs (MPBCs) to sharply fall by 0.65 per cent (Rs 102.42 million) to Rs 15,747.25 million, though GoSL’s risk-free face value (FV) MP debt stagnated for the second consecutive market day at Rs 554,159.87 million yesterday, a record twelfth consecutive market day that GoSL’s FVMP debt has been stuck at the record Rs half-a-trillion plus territory due to a lack of revenue.
Complementing these developments, the benchmark ‘spot’ weakened yesterday, by between 10 and 20 cents in two-way quotes led by virtually continuous exits from the financial markets due to uncertainty, to be trading at Rs 184.30/50 to the US dollar in two-way quotes at 4 p.m. yesterday, market sources told Ceylon FT.
In the calendar year to 4p.m. yesterday, the ‘spot’ has depreciated by between Rs 3.00-3.10 (1.65-1.71per cent) in two-way quotes.
Meanwhile, market’s net excess liquidity sharply declined by Rs 7,347million (4.64 per cent) to Rs 150,842 million, thereby making the country’s foreign reserves poorer by US$ 39.81million yesterday, caused by the settlement/s of GoSL foreign debt servicing commitments and/or CBSL returning maturing swapped dollars to the market.