The Central Bank of Sri Lanka has kicked off another major treasury bill auction aimed at raising a whopping Rs. 130 billion, marking a significant move in the government’s ongoing efforts to stabilize the economy.
Set for the 7th, the auction will offer three categories of short-term government securities:
- Rs. 20 billion in 91-day T-bills
- Rs. 60 billion in 182-day T-bills
- Rs. 50 billion in 364-day T-bills
This comes on the heels of the Rs. 145 billion worth of treasury bills auctioned on April 29, suggesting a continued reliance on domestic borrowing to bridge fiscal gaps and fund immediate state expenses.
The Central Bank is aggressively tapping into the local debt market, prompting speculation among analysts about liquidity trends, interest rate signals, and the state’s cash flow needs. Investors, both local and international, are watching closely as yields from these auctions often hint at the economic direction Sri Lanka is heading.
Will this be enough to meet short-term fiscal targets? That remains to be seen.
