Sri Lanka to sell 16 billion rupees of 91 days T-bills

Sri Lanka to sell 16 billion rupees of 91 days T-bills

Sri Lanka is set to sell 16 billion rupees of 91-day Treasury bills (T-bills) in the upcoming auction, according to recent data from the state debt office. The move comes amidst a broader trend of lower yields across various maturities, indicating a favorable market sentiment.

The 3-month yield has seen a significant drop, falling by 10 basis points to 7.55 percent, with 25 billion rupees offered and 19.1 billion rupees of bills sold [1]. Similarly, the 6-month yield has decreased by 20 basis points to 7.77 percent, with all 50 billion rupees offered sold. The 12-month yield has also shown a notable decline, dropping by 31 basis points to 7.98 percent, with 87.5 billion rupees offered and 93.3 billion rupees sold.

The settlement date for these transactions is set for May 23, 2025, and all 3 bills are available on tap at the weighted average yield [1].

This auction is part of Sri Lanka's ongoing efforts to manage its debt and stabilize its financial markets. The country has been experiencing a period of reduced tariffs with the United States, which has helped to calm volatility and uncertainty in financial markets [2].

The recent foreign buying of Sri Lanka government securities, totaling 8,756 million rupees ($29.19 million) in the week ended on August 7, 2025, further supports the positive market sentiment [2]. This inflow, coupled with the country's deflationary policies, has contributed to a total inflow of 39 billion rupees into rupee bonds since December 26, 2024.

These developments indicate a growing confidence in Sri Lanka's financial stability and economic prospects, potentially attracting further investment and supporting the country's economic recovery.

References:
[1] EconomyNext. (2025, May 28). Sri Lanka sells Rs162.5bn in Treasury bills, yields down sharply. Retrieved from https://economynext.com/sri-lanka-sells-rs162-5bn-in-treasury-bills-yields-down-sharply-223083/
[2] EconomyNext. (2025, August 14). Sri Lanka sees $29mn foreign buying in rupee bonds. Retrieved from https://economynext.com/sri-lanka-sees-us29mn-foreign-buying-in-rupee-bonds-236368/