Colombo, 21 September 2026 – The Central Bank of Sri Lanka (CBSL) today announced the results of its Open Market Operations (OMO) for September 21, 2026, revealing a series of repo auctions and detailed overnight money market transactions. These operations underscore the CBSL’s proactive role in managing systemic liquidity and steering short-term interest rates within the Sri Lankan financial landscape.
According to the official announcement by the Market Operations Department, the day’s activities included both overnight and short-term repo auctions, alongside monitoring the interbank call money and repo markets, and the utilisation of standing facilities.
Overnight Money Market Transactions Reflect Stability
The overnight money market on September 21 exhibited a stable environment with robust activity. The key figures are as follows:
- Call Money Market:
- Weighted Average Rate: 8.91%
- Minimum Rate: 8.86%
- Maximum Rate: 8.95%
- Total Gross Amount: Rs. 43,750 million
- Total Net Amount: Rs. 43,750 million
- Repo Market:
- Weighted Average Rate: 8.96%
- Minimum Rate: 8.92%
- Maximum Rate: 9.03%
- Total Gross Amount: Rs. 84,792 million
- Total Net Amount: Rs. 84,400 million
These figures indicate a healthy flow of funds among financial institutions, with rates generally consistent across the overnight segments.
CBSL Conducts Targeted Open Market Operations
The Central Bank’s OMO for the day included two significant repo auctions aimed at absorbing liquidity from the market.
Overnight Repo Auction
An overnight repo auction was conducted to manage short-term liquidity, with the following outcomes:
- Amount Offered: Rs. 70,000 million
- Bids Received: Rs. 59,000 million
- Amount Accepted: Rs. 59,000 million
- Weighted Average Yield: 8.75%
- Minimum Accepted Rate: 8.75%
- Maximum Accepted Rate: 8.75%
The auction saw full subscription for the received bids, demonstrating the market’s demand for the overnight repo facility at the prevailing yield.
Short Term Repo Auction (7-Day)
In addition to the overnight facility, a short-term repo auction with a 7-day maturity was also held:
- Amount Offered: Rs. 30,000 million
- Bids Received: Rs. 30,000 million
- Amount Accepted: Rs. 30,000 million
- Weighted Average Yield: 8.74%
- Minimum Accepted Rate: 8.74%
- Maximum Accepted Rate: 8.74%
This auction was fully subscribed, with the entire offered amount being accepted at a uniform yield, indicating the market’s willingness to place funds with the CBSL for a slightly longer duration.
Standing Facilities Utilised
The utilisation of the CBSL’s Standing Facilities provides further insight into the banking system’s liquidity position:
- Standing Deposit Facility (SDF): Rs. 56,716 million
- Standing Lending Facility (SLF): – (No utilisation)
The significant use of the Standing Deposit Facility and the absence of Standing Lending Facility usage suggest a surplus liquidity condition in the financial system on this particular day, prompting banks to deposit excess funds with the Central Bank.
CBSL Treasury Bill/Bonds Holdings
The Central Bank’s holdings of government securities remain substantial, playing a crucial role in its monetary policy framework:
- Face Value: Rs. 2,492,619.35 million
- Book Value: Rs. 1,526,011.74 million
These holdings reflect the CBSL’s extensive balance sheet and its ongoing participation in the government debt market, influencing long-term yields and overall financial stability.
Today’s Open Market Operations reaffirm the Central Bank’s commitment to effective liquidity management and its continuous efforts to foster a stable and efficient money market, crucial for the broader Sri Lankan economy.
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