Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.14%
12M T-Bill Rate9.95%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.60% / 11.70%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

CBSL reduce the T-Bill holding as they sell more T-Bills at phase II

Bank & FinanceDec 23, 2022
CBSL reduce the T-Bill holding as they sell more T-Bills at phase II

The quantum of T-Bill holdings by CBSL ( formally known as money printing) was reduced by LKR 14Bn one week before the end of 2022. CBSL has managed to sell more T-Bills than market maturity while allowing participants to participate Phase-II auction.

T-bills held by CBSL jumped by LKR 64Bn on 15th December, when the T-bond settlement took place. CBSL was not able to sell the required amount of T-Bonds at the auction and had to print the money to settle the investors who brought those bonds earlier. Later CBSL raised more funds from the T-Bill auction to replace the printed money.

Effectively, CBSL’s long-term borrowing (borrowing via T-Bonds) has shifted partly to short-term (borrowing via T-Bills).

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.