Colombo, 09 September 2026 – The Central Bank of Sri Lanka (CBSL) today released its customary Open Market Operations (OMO) report for September 9, 2026, detailing the day’s transactions in the money market and the central bank’s strategic interventions. These daily updates provide crucial insights into the liquidity conditions within the Sri Lankan financial system and the CBSL’s monetary policy stance, particularly concerning short-term interest rates.
Money Market Activity: A Snapshot of Overnight Dynamics
The overnight money market experienced moderate activity, reflecting the prevailing liquidity landscape. The Call Money Market saw a weighted average rate of 8.87%, with rates ranging from a minimum of 8.70% to a maximum of 8.92%. The total gross amount transacted in this segment was Rs. 23,540 million, with a net amount of Rs. 22,940 million.
In the Repo Market, the weighted average rate settled slightly higher at 8.94%, observing a range between 8.80% and 8.99%. Transactions in the repo market totalled a gross amount of Rs. 44,012 million, with the net amount mirroring the gross at Rs. 44,012 million, indicating consistent borrowing and lending against collateral.
CBSL’s Strategic Interventions: Repo Auctions
To manage system liquidity and guide short-term interest rates, the CBSL conducted two key Open Market Operations through repo auctions:
1. Overnight Repo Auction
- Amount Offered: Rs. 60,000 million
- Bids Received: Rs. 56,500 million
- Amount Accepted: Rs. 56,500 million
- Weighted Average Yield: 8.74%
- Minimum Accepted Rate: 8.74%
- Maximum Accepted Rate: 8.75%
This auction, settled and maturing on September 9th and 10th respectively, saw strong participation, with the CBSL accepting all received bids, signifying its readiness to inject short-term liquidity into the market at competitive rates.
2. Short Term Repo Auction (7-Day Maturity)
- Amount Offered: Rs. 50,000 million
- Bids Received: Rs. 45,000 million
- Amount Accepted: Rs. 45,000 million
- Weighted Average Yield: 8.73%
- Minimum Accepted Rate: 8.72%
- Maximum Accepted Rate: 8.75%
The 7-day repo auction, maturing on September 16th, also saw full acceptance of bids. The slightly lower weighted average yield compared to the overnight auction suggests a stable short-term interest rate environment and the market’s expectation of consistent liquidity over the week.
Standing Facilities Utilisation Reflects Market Liquidity
The utilisation of the CBSL’s Standing Facilities provides further clarity on the prevailing liquidity conditions:
- Standing Deposit Facility (SDF): Rs. 61,940 million
- Standing Lending Facility (SLF): Rs. 5,301 million
The substantial amount placed in the Standing Deposit Facility indicates that commercial banks continued to deposit surplus funds with the CBSL. Meanwhile, a relatively smaller, yet notable, amount was drawn from the Standing Lending Facility, suggesting some institutions required short-term liquidity to meet their immediate needs.
CBSL’s Treasury Bill/Bond Holdings
The CBSL’s holdings of Treasury Bills and Bonds remain a significant component of its balance sheet, with a face value of Rs. 2,492,619.35 million and a book value of Rs. 1,557,096.37 million. These holdings reflect the central bank’s previous market operations and its role in maintaining stability in the government securities market.
Today’s Open Market Operations report underscores the CBSL’s proactive role in managing liquidity and ensuring the smooth functioning of Sri Lanka’s financial markets, providing a stable foundation for broader economic activities.
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