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CBSL restricted banks to lend their excess money to CBSL and expects it to lend to other banks, that are short of funds or to buy the T-Bills from the primary or secondary market. Banks lending over LKR 300Bn to CBSL for the last few weeks have fallen to LKR 27.5Bn today.
Banks lending to CBSL fell by LKR 298Bn today, but the banks borrowing from CBSL did not reduce the same amount. That indicates the banks that are in excess of funds kept the money in the CBSL RTGS account without lending to CBSL or other banks.