Sri Lanka to sell 45 billion rupees of 182 days T-bills

Sri Lanka to sell 45 billion rupees of 182 days T-bills

Sri Lanka to Sell 45 Billion Rupees of 182-Day T-Bills
February 20, 2026

The Central Bank of Sri Lanka announced a planned auction of 45 billion rupees in 182-day Treasury bills (T-bills) to manage liquidity and support government financing needs. The auction, scheduled for March 5, 2026, aligns with routine monetary operations to balance fiscal requirements and market stability.

T-bills are short-term debt instruments used by governments to raise funds, typically issued at a discount and redeemed at face value upon maturity. The 182-day term reflects a mid-term liquidity tool, offering investors a low-risk option while providing the government with flexible funding. This issuance follows Sri Lanka's ongoing efforts to stabilize public finances after years of economic challenges, including a severe balance-of-payments crisis in 2022.

The decision comes amid mixed market conditions. While the Colombo Stock Exchange's All Share Index has shown modest recovery in recent months, investor confidence remains sensitive to inflationary pressures and foreign exchange fluctuations. Analysts note that the T-bill auction could influence short-term interest rates, depending on demand from domestic banks and institutional investors.

Proceeds from the sale will be allocated to general government expenditure, including debt servicing and priority development projects. The Central Bank emphasized that the auction would be conducted through competitive bidding, ensuring transparency and adherence to international financial standards.

Sri Lanka's debt management strategy has increasingly relied on domestic debt instruments in recent years, reducing exposure to foreign currency risks. However, with public debt exceeding 120% of GDP in 2025, fiscal sustainability remains a key concern for policymakers and creditors.

No further details on the expected yield or subscription criteria have been disclosed. Updates on the auction's outcome will be provided post-issuance.

[引用越界:1]: Central Bank of Sri Lanka, February 20, 2026 announcement.
[引用越界:2]: International Monetary Fund, Sri Lanka Economic Update (2025).
[引用越界:3]: Local market analysis from Jan. 2026.
[引用越界:4]: Central Bank of Sri Lanka, Debt Management Framework (2025).
[引用越界:5]: World Bank, Public Debt Statistics for Sri Lanka (2025).