Central Bank of Sri Lanka to Issue Rs. 125 Billion Treasury Bills on October 23

 

The Central Bank of Sri Lanka (CBSL) has announced the issuance of treasury bills worth Rs. 125 billion on October 23, 2024, as part of its financial strategy to manage the government’s immediate funding needs.

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Bidding Process and Participation

Bids will be accepted exclusively through the e-bid submission facility, ensuring a transparent and efficient process.

• Primary Dealers: Authorized entities will place bids on behalf of investors.
• Eligibility: Individuals and institutions can participate in the auction by submitting bids through primary dealers, adhering to the Central Bank’s minimum bid requirements.

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Flexible Auction Size

While the total auction size is set at Rs. 125 billion, the CBSL retains the flexibility to adjust the issuance amounts across different maturity periods based on market demand and interest rate conditions.

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Secondary Market Access

For investors unable to participate in the primary auction, treasury bills will be available in the secondary market through primary dealers and licensed commercial banks. The secondary market ensures liquidity and offers flexibility for portfolio management.

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Importance of Treasury Bills

Treasury bills are a critical tool for:

• Government Borrowing: Financing short-term cash flow requirements.
• Investor Security: Providing a low-risk investment backed by the government.

The issuance of Rs. 125 billion in treasury bills aligns with the CBSL’s broader financial strategy to manage national debt obligations while ensuring uninterrupted government operations.

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Investor Opportunities

The upcoming auction offers a secure investment opportunity for both public and private investors. Participating through authorized primary dealers provides access to one of Sri Lanka’s most stable financial instruments.

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Conclusion

The treasury bill issuance on October 23 highlights Sri Lanka’s continued efforts to stabilize its financial systems and meet economic demands. With both primary auction and secondary market options, investors have multiple avenues to engage with government debt securities.