Colombo, Sri Lanka – 10 September 2026 – The Central Bank of Sri Lanka (CBSL) today released its Open Market Operations (OMO) results for 10 September 2026, revealing key insights into the nation’s financial market liquidity and interbank activity. The data indicates strong demand for overnight funds, with the CBSL’s overnight repo auction being significantly oversubscribed, while a short-term repo auction saw no bids.
The latest OMO summary, issued by the Market Operations Department, underscores the CBSL’s continuous efforts to manage liquidity within the financial system, a crucial function for maintaining price stability and supporting economic growth.
Overnight Repo Auction Sees Robust Demand
The CBSL’s overnight reverse repurchase (repo) auction, held to inject liquidity into the banking system for a short duration, attracted substantial interest. An amount of Rs. 40,000 million was offered, against which bids totaling Rs. 53,000 million were received. The CBSL accepted the full offered amount of Rs. 40,000 million, signaling its intention to meet the market’s overnight liquidity needs.
The weighted average yield for the accepted bids stood firm at 8.70%, with both the minimum and maximum accepted rates also at 8.70%. This consistent rate across all accepted bids indicates a stable and controlled overnight borrowing cost within the system. The settlement for these funds occurred today, with maturity set for 11 September 2026.
Short-Term Repo Auction Goes Unbid
In contrast to the overnight offering, the short-term (7-day) reverse repurchase auction saw no interest from market participants. An amount of Rs. 30,000 million was offered for settlement today and maturity on 17 September 2026, but the CBSL reported zero bids received and consequently, no amount accepted. This lack of participation for a longer-term liquidity injection may suggest that institutions either have sufficient funds for the medium term or are awaiting further clarity on market conditions and rates.
Interbank Money Market Activity
Transactions in the overnight money market also provided a snapshot of daily liquidity dynamics:
- Call Money Market: The weighted average rate was 8.87%, with rates ranging from a minimum of 8.75% to a maximum of 8.92%. Total gross transactions amounted to Rs. 40,045 million, with a net of Rs. 39,045 million.
- Repo Market: The overnight repo market recorded a weighted average rate of 8.96%, fluctuating between a minimum of 8.92% and a maximum of 8.99%. Total gross and net amounts for this segment were Rs. 39,720 million.
These rates provide an indication of the cost of borrowing and lending between financial institutions on an uncollateralized (call money) and collateralized (repo) basis, reflecting the immediate supply and demand for funds.
CBSL Standing Facilities Utilization
The utilization of the CBSL’s standing facilities highlights the residual liquidity in the system at the close of the day:
- Standing Deposit Facility (SDF): Financial institutions placed Rs. 76,365 million with the CBSL, indicating a significant amount of surplus liquidity in the banking system.
- Standing Lending Facility (SLF): Conversely, only Rs. 171 million was borrowed from the CBSL by institutions needing short-term funds.
The high SDF utilization coupled with minimal SLF usage points towards an overall liquid market, where most institutions possess excess funds, although a few may still require emergency overnight borrowing.
CBSL Treasury Bill/Bonds Holdings
As of 10 September 2026, the Central Bank’s holdings of Treasury Bills and Bonds stood at a face value of Rs. 2,492,619.35 million and a book value of Rs. 1,555,719.79 million. These holdings are a key component of the CBSL’s balance sheet and are utilized in its market operations.
The CBSL’s OMO results for 10 September 2026 reflect a market with ample overnight liquidity, evidenced by the high oversubscription of its overnight repo auction and significant use of the Standing Deposit Facility. The absence of bids for the short-term repo, however, adds an interesting dynamic, suggesting varying liquidity profiles or preferences among market participants for different tenors.
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