Colombo, Sri Lanka – The Central Bank of Sri Lanka (CBSL) has announced two significant auctions for government securities this week, inviting bids from Primary Dealers through its electronic bidding platform.
Auction Schedule
- Treasury Bills Auction – November 27, 2024
- Value: Rs. 205 billion
- Purpose: To address short-term government financing needs
- Treasury Bonds Auction – November 28, 2024
- Value: Rs. 125 billion
- Details: Bonds will be issued at an interest-free price accrued from the last interest payment date to the settlement date.
Key Details for Investors
- Eligibility: Bids are restricted to Primary Dealers. However, individuals and other investors can participate by submitting bids through these dealers, subject to the minimum bid amount requirement.
- Flexibility: The CBSL reserves the right to adjust the quantities accepted for each maturity based on prevailing market conditions. However, the total amount offered for the auction will not be exceeded.
Secondary Market Opportunities
Investors who miss these auctions still have the option to purchase Treasury Bills and Bonds through the secondary market. These transactions can be facilitated by Primary Dealers or licensed commercial banks, providing an alternative avenue for participation.
Supporting Efficient Public Debt Management
These auctions are part of the CBSL’s ongoing efforts to manage public debt effectively while meeting the government’s funding requirements. They provide vital opportunities for investors to engage with government securities, contributing to the nation’s financial stability.
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