Sri Lanka to sell total 78.5 billion rupees of T-bills August 20th

Sri Lanka to sell total 78.5 billion rupees of T-bills August 20th

Sri Lanka's Central Bank has announced its intention to sell a total of 78.5 billion rupees worth of Treasury Bills (T-bills) on August 20th. This move comes amidst the country's ongoing economic recovery, with the central bank projecting a 4.5% growth rate for the year, according to its recent monetary policy report [1].

The sale of T-bills is a key component of Sri Lanka's financial strategy, aimed at managing its debt and ensuring economic stability. The T-bills are expected to be sold at competitive rates, reflecting the current economic conditions and the central bank's efforts to maintain a stable financial environment.

The central bank's projection of a 4.5% growth rate for 2025 is above the World Bank's estimate of 3.5% growth for the same period. This growth is supported by a $2.9 billion International Monetary Fund (IMF) program, which has helped Sri Lanka rebound from a severe financial crisis three years ago. The IMF program has been instrumental in stabilizing the economy and facilitating its recovery [1].

However, the report also highlights some risks to the outlook. The evolving global economic landscape and external demand conditions pose challenges to Sri Lanka's growth prospects. Additionally, the country is still engaged in talks with the U.S. regarding the 20% tariffs imposed last month, which have had a significant impact on the apparel sector, one of Sri Lanka's major foreign exchange earners [1].

Inflation remains a concern, with the consumer price index (CPI) falling by 0.3% in July. The central bank expects inflation to continue accelerating, reaching its target of 5% by mid-2026. The CBSL held its benchmark interest rate unchanged at 7.75% in June, following a 25 basis point reduction in May [1].

The sale of T-bills on August 20th is a strategic move that aligns with the central bank's broader economic policy. It aims to manage debt levels, maintain financial stability, and support economic growth. Investors and financial professionals are advised to closely monitor the sale and its impact on the broader financial landscape.

References:

[1] Reuters. (2025, August 15). Sri Lanka's central bank expects economy to grow by 4.5% in 2025. Retrieved from https://www.reuters.com/world/asia-pacific/sri-lankas-central-bank-expects-economy-grow-by-45-2025-2025-08-15/