In a bold move to raise capital, the Central Bank of Sri Lanka has announced back-to-back auctions of treasury bills and bonds worth a staggering Rs. 232 billion, marking one of the largest fundraising exercises in recent months.
Issuance of Treasury Bills on September 10
The Central Bank is set to issue treasury bills worth Rs. 77,000 million through an auction. These bills will be released with varying maturities to attract investors:
- Day 91: Rs. 12,000 million
- Day 182: Rs. 40,000 million
- Day 364: Rs. 25,000 million
The submission of bids for the auction closed on September 10 at 11:00 a.m., with issuance and settlement scheduled for September 12.
Treasury Bonds to be Issued on September 11
Another major auction will be held on September 11, where Rs. 155,000 million in treasury bonds will be issued across three tranches:
- 09.75% Bonds due July 1, 2030: Rs. 85,000 million
- 09.00% Bonds due October 1, 2032: Rs. 25,000 million
- 10.70% Bonds due June 15, 2035: Rs. 45,000 million
The deadline for submission of bids is 11:00 a.m. on September 11, with settlement fixed for September 15.
Total Auction Value: Rs. 232 Billion
- Treasury bills: Rs. 77,000 million
- Treasury bonds: Rs. 155,000 million
The combined auctions will see the Central Bank raising Rs. 232 billion, reinforcing its reliance on the bond and bill markets to stabilize fiscal flows.
Investor Access and Requirements
For both auctions, bids can be submitted through primary dealers. Each bid must be a minimum of Rs. 5 million and in multiples of Rs. 1 million.
Investors may also purchase treasury bills and bonds in the secondary market via primary dealers or licensed commercial banks, expanding opportunities for participation.
With this massive auction drive, the Central Bank is clearly looking to plug fiscal gaps, attract investors, and manage the nation’s debt more aggressively.
