Jan 16, Colombo: The Central Bank of Sri Lanka (CBSL) today announced that it has subscribed to Treasury bills (T-bills) amounting to Rs. 90 billion in January 2019.
The Central Bank said the transaction was made at the request of the Treasury to assist financing needs of the government due to the delay in receiving expected foreign currency financing arrangements as envisaged in the Treasury's cash flow for the month of January 2019.
The Monetary Board has acceded to the Treasury's request in the national interest and under exceptional circumstances.
The Bank said, having reviewed the macroeconomic consequences of subscribing to T-bills by the CBSL, the Government has agreed to reverse part of the transaction in February and the balance during the first quarter of 2019 once the Government's borrowing program is brought back on track with realization of expected financial arrangements.