Central Bank of Sri Lanka (CBSL) on behalf of the Government of Sri Lanka (GoSL) will have to repay to the market maturing Treasury (T) Bills of known tenures totalling Rs 71,306 million in value; a further 182 day maturity of unknown value which have been embedded in both 182 and 364 day maturities and totalling Rs 768 million in full; another 91 day maturity of unknown value embedded together with 182 and 364 day maturities and totalling Rs 22,000 million in full; coupled with unknown maturities held by Central Bank of Sri Lanka (CBSL), all of which mature next Monday (17 April).
The splits of the known T Bill maturities repayable by next Monday are 91 day maturities Rs 50,000 million; 182 days: Rs 7,657 million and 364 days: Rs 13,649 million; respectively.
To aid GoSL to repay the above maturities, CBSL on behalf of the GoSL will be issuing Rs 120 billion worth of T Bill to the market on Tuesday (11 April) with settlement on next Monday. Their splits are Rs 60 billion worth of 91 day maturities, Rs 20 billion (182 day maturities) and Rs 40 billion (364 day maturities), respectively.
Normally, investments in T Bills and T Bonds are risk free because in the event GoSL is unable to repay such debt, generally, CBSL is mandated print demand-pull inflationary money and repay such creditors. Money printing is the sold prerogative of the CBSL. CBSL is the steward of GoSL debt. Selling T Bills and T Bonds to the domestic market is a popular way GoSL raises money to meet its domestic needs.