Money printing liabilities reduced to Rs 175.46 Billion
The Government of Sri Lanka (GoSL) borrowed Rs 38,768.99 million from the market on 1 January to retire an equivalent value of its face value money printing (FVMP) liabilities, thereby, reducing the value of the latter by 18.10% to Rs 175,461.41 million.
The GoSL was aided in this endeavour, due to the release of net excess liquidity to the tune of Rs 108,497.99 million on 1 January because of the flexibility of banks’ statutory reserves ratio requirement which obligation has to be in order only at the middle and end of a calendar month.
As a result, the market’s net shortfall declined by Rs 69,729 million (47%) to Rs 78,641 million, on 1 January. Meanwhile, the GoSL’s MP borrowing costs (BCs) increased by Rs 1,607.04 million (159.53%) to Rs 2,614.40 million on 1 January.
The reason why the market is short is due to the lack of inflows.
(Source: Ceylon Today – By Paneetha Ameresekere)
Latest Headlines in Sri Lanka
- Sri Lanka lifts vehicle import ban effective February 1, 2025 January 31, 2025
- Chinthaka Darshana Hewapathirana Resigns as NYSC Chairman January 31, 2025
- Sri Lanka revises fuel prices from February 1, 2025 January 31, 2025
- Sri Lanka President pledges swift action on northern land, jobs and development January 31, 2025
- U.S. to deport 3,065 Sri Lankans amid crackdown on illegal immigrants January 31, 2025
