The Central Bank of Sri Lanka (CBSL) bought US$ 146.46 million (Rs 22,903 million) from the Treasury yesterday (20), which helped it to retire Rs 18,442 million of its face value money printing (FVMP) holdings, thereby helping to defray inflationary pressure by keeping demand on check.
This $ 146.46 million is part of the
$ 2.5 billion the Government of Sri Lanka (GoSL) raised last week, by issuing sovereign bonds to the international market. Conversions are based on the middle rate of the closing value of the benchmark ‘spot’ as at 18 April which was Rs 156.375 to the US dollar.
As a result, net excess liquidity (NEL), yesterday (20) over 19 April, increased by Rs 4,461 million (17.25 per cent) to Rs 30,326 million and the GoSL’s MP borrowing costs (BCs) fell by 4.26 per cent
(Rs 96.35 million) to
Rs 2,167.06 million. Meanwhile, the CBSL’s FVMP holdings declined by 25.15 per cent to Rs 54,884.34 million, yesterday.