Sri Lanka treasury rates steady

April 02, 2008 (LBO) – Sri Lanka’s Treasury bill rates were flat after an auction in which the government sold 10 billion rupees worth of maturing bills, the government’s debt office said. The government sold 5.6 billion rupees worth 3-month bills at 18.40 percent, up 01 basis point, 2.9 billion rupees of 6-month bills at 18.97 percent, up 01 basis point and 1.4 billion 12-month bills at 19.01 percent also up 01 basis point.

Sri Lanka’s interbank rates have been liquid with overnight rates hovering around 13.00 to 14.00 percent, dealers said.

The interbank market was flushed with excess liquidity.

The government’s debt office also issued a bond maturing in 01.04.2009 at 18.50 which had a coupon of 16.00 percent. Only foreign investors would be able to buy the bond, dealers said.