Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.91%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
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Reserves $1.89Bn (Dec 2022)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

Treasure Bill auction size tripled after two years

Interest RatesJan 22, 2023
Treasure Bill auction size tripled after two years
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CBSL auctions T-Bills to repay its earlier debts as well as if there are new borrowings. Out of these earlier debts, part is held by the public (individuals and institutions) and CBSL itself. CBSL’s T-bills liability was LKR 1.8 trillion two years back and now it stands at LKR 4.2 trillion.

Out of the LKR 4.8 trillion of CBSL’s current T-Bill liability, LKR 2.5 Trillion is been held by CBSL itself due to money printing. This means Government is liable to pay LKR 2.3 trillion to the public and LKR 2.5 Trillion to CBSL. This composition was much lower two years back when the Government was liable for LKR 1 trillion to the public and LKR 0.7 trillion to CBSL.

CBSL does not offer the entire maturity amount on a weekly basis for the action as the market maturities are far below CBSL’s maturities. The short-term debt level is accumulating much faster phase as the government is been cut off from external funding due to sovereign default.

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