Central Bank of Sri Lanka (CBSL) on behalf of the Government of Sri Lanka (GoSL) will have to repay maturing Treasury (T) Bills of known tenures totalling Rs 59,261 million (Rs 59.3 billion) to the market by next Friday (19 May).
Their splits are Rs 38,283 million 91-day maturities, Rs 14,712 million 182-day maturities and Rs 6,626 million 364-day maturities, respectively. Howbeit, maturing T Bills held by the CBSL and also repayable by next Friday are unknown as CBSL the steward of GoSL debt doesn’t disclose such figures.
Additionally another Rs 1,231 million 182-day maturity and a 91 day maturity embedded in both 182 and 364-day maturities as well and totalling Rs 7,133 million in full is also repayable to the market by next Friday. However, CBSL hasn’t given their separate splits, ie the value of the 91, 182 and 364-day maturity splits separately in the above full total of Rs 7,133 million.
Generally such maturities are repaid by once more borrowing from the market by calling for new T Bill auctions, generally called on Fridays (to day 12 May) by advertising on their (CBSL) website, with the auction held on next Wednesday (17 May) and settlement on next Friday (19 May). But at the time of writing, CBSL hadn’t advertised for such an auction, which auctions are held weekly.
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 usually 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.