October 12, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) announced a significant demand at the government’s first treasury bond auction, held yesterday (11), aimed at raising Rs. 95,000 million for the new administration. The auction saw bids totaling Rs. 277,896 million, far exceeding the initial target.
Treasury bonds worth Rs. 70,000 million, maturing in 3 years and 5 months (from 15.10.2024 to 15.03.2028), saw an overwhelming demand, with bids amounting to Rs. 215,738 million. Additionally, there was a demand of Rs. 62,158 million for bonds worth Rs. 25,000 million that will mature in 8 years (from 15.10.2024 to 01.10.2032).
Despite the high demand, the CBSL’s Public Credit Department confirmed that only Rs. 95,000 million worth of bonds would be accepted from the auction. The bonds with a 3-year maturity will pay an annual interest rate of 10.75%, while those maturing in 8 years will have an interest rate of 9%.
