Colombo, 07 September 2026 – The Central Bank of Sri Lanka (CBSL) today released its Open Market Operations (OMO) results for September 07, 2026, providing key insights into the domestic money market’s liquidity conditions and the CBSL’s efforts to steer short-term interest rates. The operations, conducted by the Market Operations Department, included overnight and short-term repo auctions alongside the regular functioning of the call money market and the utilization of standing facilities.
Overnight Money Market Transactions Overview
The overnight money market saw significant activity, reflecting the daily ebb and flow of liquidity within the financial system. Here’s a breakdown:
- Call Money Market:
- Weighted Average Rate: 8.86%
- Minimum Rate: 8.82%
- Maximum Rate: 8.90%
- Total Gross Amount: Rs. 51,520 million
- Total Net Amount: Rs. 51,410 million
- Repo Market:
- Weighted Average Rate: 8.93%
- Minimum Rate: 8.90%
- Maximum Rate: 8.97%
- Total Gross Amount: Rs. 59,855 million
- Total Net Amount: Rs. 59,814 million
These figures indicate the prevailing short-term interbank lending rates and the significant volumes transacted by financial institutions to manage their day-to-day liquidity needs.
Central Bank’s Open Market Operations
The CBSL conducted two key repo auctions to manage market liquidity:
Overnight Repo Auction
The overnight repo auction, maturing on September 08, 2026, saw an undersubscription, with the CBSL accepting all bids received:
- Amount Offered: Rs. 40,000 million
- Bids Received: Rs. 22,500 million
- Amount Accepted: Rs. 22,500 million
- Weighted Average Yield: 8.73%
- Minimum Accepted Rate: 8.72%
- Maximum Accepted Rate: 8.75%
The undersubscription suggests that participants either had sufficient liquidity or sought alternative funding avenues for the very short term.
Short Term Repo Auction
A two-day short-term repo auction, maturing on September 09, 2026, was fully subscribed, indicating a demand for liquidity over a slightly longer horizon:
- Amount Offered: Rs. 10,000 million
- Bids Received: Rs. 10,000 million
- Amount Accepted: Rs. 10,000 million
- Weighted Average Yield: 8.75%
- Minimum Accepted Rate: 8.75%
- Maximum Accepted Rate: 8.75%
The uniform accepted rate across the board for the short-term auction reflects a clear market expectation for this specific tenor.
Utilization of CBSL Standing Facilities
Further illustrating the market’s liquidity position, commercial banks utilized the CBSL’s Standing Facilities:
- Standing Deposit Facility (SDF): Rs. 63,585 million
- Standing Lending Facility (SLF): Rs. 2,448 million
The significant usage of the SDF suggests an overall surplus of liquidity in the banking system, with banks parking excess funds with the CBSL. The comparatively smaller utilization of the SLF indicates that only a limited number of institutions faced shortfalls, or their shortfalls were minor on this particular day.
CBSL Treasury Bill/Bonds Holdings
The Central Bank’s own portfolio of government securities also provides a backdrop to its market operations:
- Face Value: Rs. 2,492,619.35 million
- Book Value: Rs. 1,551,180.08 million
These holdings underscore the CBSL’s substantial presence in the government securities market, an important tool for conducting monetary policy and managing systemic liquidity.
The detailed OMO report for September 07, 2026, offers financial market participants and analysts a comprehensive look into the daily dynamics of Sri Lanka’s money market and the Central Bank’s active role in maintaining stability and guiding short-term rates.
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