Sri Lanka releases 290 bln rupees to market at treasury bond auction

COLOMBO, Sept. 13 (Xinhua) — Sri Lankan Ministry of Finance, Economic Stabilization and National Policies, through the country’s central bank, offered 290 billion rupees (967 million U.S. dollars) to the market at the treasury bond auction to finance maturing treasury bonds, a statement from it said on Friday.
The ministry said the fiscal position has improved substantially as a result of the decisive fiscal policy measures implemented by the government.
The bidding pattern at the auctions appears to be driven by other factors which may include the market pricing on risk associated with uncertainties related to the forthcoming elections, according to the statement.
The ministry added that bids received for the 10-year maturity were rejected and it was decided to maintain the weighted average yield rate (WAYR) at a reasonable level across shorter tenure maturities. The three-year treasury bonds were issued at 13.79 percent and five-year treasury bonds were issued at 13.98 percent. ■