ECONOMYNEXT – Sri Lanka’s Treasury Bill yield rose across maturities with the one year yield up 142 points to 9.95 percent, in one of the biggest one day gains, data from the state debt office showed.
The 3-month yield rose 72 basis points to 9.33 percent.
The 6-month yield rose 135 basis points to 9.88 percent.
The debt office offered 55 billion rupees of bills and sold only 35 billion rupees.
The one year yield is still too low to draw interest and was sharply below inflation.
Sri Lanka’s inflation has been rising steeply to 13-year high after two years of money printing to keep interest rates down and the country is in a severe foreign exchange crisis.
Effective January 2022 the government also gave a billion US dollars worth of handouts.
There had been no increase in fuel prices as global prices rose.
The central bank has called for market pricing of fuel to stop further credit from banks to state-run Ceylon Petroleum Corporation.
