Inflation ( CCPI)6.4% (Jan 2024)
GDP1.6% (3Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate9.79%
12M T-Bill Rate10.02%
2Y T-Bond Rate11.05%/ 11.10%
4Y T-Bond Rate12.20% / 12.30%
USD/LKR313/314
Reserves $4.5Bn (Jan 2024)
Cum. Trade Deficit $4,866 Mn (Dec 2023 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

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).

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