CBSL buys Rs 90 billion in Treasury bills

The Central Bank of Sri Lanka (CBSL) subscribed to Treasury bills (T-bills) amounting to Rs. 90 billion in January 2019.

Issuing a release, the CBSL said that the subscription was made at the request of the Treasury to assist financing needs of the government due to the delay in receiving expected foreign currency financing arrangements as envisaged in the Treasury’s cash flow for the month of January 2019.

The Monetary Board has acceded to the Treasury’s request in the national interest and under exceptional circumstances, the CBSL added.

The release further said that having reviewed the macroeconomic consequences of subscribing to T-bills by the CBSL, the Government has agreed to reverse part of the transaction in February and the balance during the first quarter of 2019 once the Government’s borrowing programme is brought back on track with the realization of expected financial arrangements.