Central Bank of Sri Lanka (CBSL) printed money to the tune of Rs 10,822 million, thereby increasing money printing by 3.42% to Rs 327,480.31 million at the end of the day’s trading yesterday.
The money printing figure also includes Government of Sri Lanka’s (GoSL’s) interest cost, because of it. As a result, the money market’s net, excess liquidity increased by Rs 6,663 million (11.98%) to Rs 62,289 million and CBSL’s book value (BV) Treasury (T) Bill holdings by Rs. 5,709.9 million (2.18%) to Rs. 267,084.09 million.
Nonetheless, CBSL was able to keep its face value T-Bill holdings unchanged at Rs 270,105.31 million, yesterday, thereby reducing GoSL’s interest cost on account of CBSL’s T-Bill holdings by Rs 5,709.9 million (65.4%) to Rs 3,021.22 million, yesterday, over Tuesday. This is possible by retiring some high cost T-Bills in CBSL’s holdings, though, on a net basis, CBSL accumulated low cost T-Bills, as reflected by the increase in CBSL’s BV T-Bill holdings, to help meet GoSL’s various commitments, yesterday.