Sri Lanka sells smaller bill volume at auction

Ishara S. Kodikara | AFP | Getty Images Sri Lanka Prime Minister Ranil Wickremesinghe, center, speaks to supporters at the prime minister's official residence in Colombo on December 16, 2018, after he was reappointed as prime minister by Sri Lanka's president, the same man who fired him from the job nearly two months ago.

Sept 04, 2013 (LBO) – Sri Lanka has accepted only 2.7 billion rupees of bids for an auction of 9.0 billion rupees of maturing bills Wednesday with yields being flat, the state debt office said. The 3-months yield was at 8.61 percent, the 6-month yield was 9.64 percent and the 12-month yield was 10.56 percent.

All yields were kept unchanged with only 2.7 billion rupees in bids accepted for a auction which offered 9.0 billion rupees of maturing bills.

If the central bank takes up the balance bills with printed money, analysts say it will contribute to further pressure on the foreign exchange market, forex reserve losses or a combination of both.