COLOMBO, Sri Lanka – 14 September 2026 – The Central Bank of Sri Lanka (CBSL) today actively managed liquidity within the nation’s financial system through its Open Market Operations (OMOs), issuing a comprehensive update on its daily transactions. These operations, conducted by the Market Operations Department, are crucial for maintaining stability in the money market and signaling the central bank’s monetary policy stance.
The CBSL’s operations for Monday, 14 September 2026, indicate a concerted effort to absorb excess liquidity from the market via repo auctions, while also providing a clear picture of interbank lending rates and the utilization of standing facilities.
Key Open Market Operations Details
On 14 September 2026, the CBSL conducted two significant repo auctions to manage short-term liquidity:
- Overnight Repo Auction: The CBSL offered Rs. 70,000 million for an overnight repo. Bids received amounted to Rs. 56,500 million, all of which were accepted. The Weighted Average Yield for this auction was 8.72%, with accepted rates ranging from a minimum of 8.64% to a maximum of 8.75%. This operation aimed to fine-tune overnight liquidity.
- Short Term Repo Auction (7-Day): A short-term repo auction, maturing on 21 September 2026, was conducted for Rs. 20,000 million. The auction received bids totaling exactly Rs. 20,000 million, all of which were accepted. The Weighted Average Yield stood at 8.75%, consistent across the minimum and maximum accepted rates. This operation signals the CBSL’s intent for a slightly longer-term liquidity absorption.
Overnight Money Market Dynamics
The overnight money market reflected the immediate liquidity conditions. The Call Money Market saw a Weighted Average Rate of 8.88%, with rates fluctuating between 8.82% and 8.92%. The total gross and net amounts transacted in this segment were Rs. 34,825 million.
Meanwhile, the Repo Market recorded a Weighted Average Rate of 8.96%. Transactions in this market ranged from a minimum of 8.90% to a maximum of 8.99%. The total gross and net amount transacted in the Repo Market was Rs. 46,282 million.
Standing Facility Usage
Financial institutions also utilized the CBSL’s Standing Facilities. On 14 September 2026, the Standing Deposit Facility (SDF) saw a substantial Rs. 58,061 million being deposited with the CBSL, indicating an availability of excess funds within the banking system seeking a safe haven. Conversely, the Standing Lending Facility (SLF) was utilized for a comparatively smaller amount of Rs. 3,161 million, suggesting limited demand for emergency liquidity from the central bank.
CBSL Treasury Bill/Bonds Holdings
The update also provided insight into the CBSL’s domestic asset holdings. As of the announcement date, the Central Bank held Treasury Bills and Bonds with a Face Value of Rs. 2,492,619.35 million. The Book Value of these holdings stood at Rs. 1,558,830.50 million, reflecting the accounting valuation of its portfolio.
These daily Open Market Operations are a cornerstone of the CBSL’s monetary policy implementation, ensuring sufficient liquidity in the financial system while guiding short-term interest rates in line with its overall economic objectives.
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