May 16, Colombo (LNW): Sri Lanka’s state debt office has raised Rs. 17.3 billion through the sale of treasury bills offered on tap, with yields remaining below 8 per cent, reflecting current market stability and investor confidence in short-term government securities.
According to the Public Debt Department, the 3-month bills (ISIN: LKA09125H157) were sold at an average yield of 7.65 per cent, while the 6-month bills (ISIN: LKA18225K141) were accepted at 7.98 per cent.
This tap issuance followed the government’s primary auction held on May 14, where a total of Rs. 173 billion was raised across 3-month, 6-month, and 12-month maturities, demonstrating continued demand for treasury instruments in the wake of easing inflationary pressures and moderate monetary policy expectations.
Tap issues are conducted after auctions to absorb excess demand or raise additional funding under the same terms. The relatively stable yields suggest that investors are comfortable with current economic signals, including the direction of interest rates and fiscal consolidation under the ongoing debt restructuring framework.
The proceeds are expected to support short-term government financing needs, including debt servicing and recurrent expenditure, as Sri Lanka continues its path toward macroeconomic recovery.
