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Sri Lanka's rates have been rising in recent weeks with the defence of a dollar peg which has drained liquidity from the system.
The Central Bank's Treasuries stock, which represents liquidity domestic asset purchases to off-set dollar sales or reserve appropriations rose to 73.4 billion rupees Thursday from 70.
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2 billion rupees a day earlier.
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Net excess liquidity fell to 16.
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7 billion rupees from 19.9 billion rupees. Overnight gilt backed repos were offered around 7.
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25 percent and un-collateralized call loans were quoted around 8.
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10/20 percent even before today's auction started, dealers said.
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The the auction 7.29 billion rupees were given at weighted average rate of 7.
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26 percent, dealers said.
On Wednesday overnight repo rates peaked at 7.
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65 percent and the weighted average rose to 7.53 percent from 7.38 percent a day earlier, according to central bank data.
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Average call rates rose to 8.46 percent from 8.21 percent a day earlier. Call money peaked at 8.55 percent.
The central bank stepped in with a liquidity auction with cash injected at an average 8.
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25 percent rate. But dealers expect bid to ease Thursday.
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