COLOMBO – 25 September 2026 – The Central Bank of Sri Lanka (CBSL) today released details of its Open Market Operations (OMOs) conducted on 25 September 2026, offering crucial insights into the nation’s financial system liquidity and the CBSL’s strategic interventions. These operations are a vital tool for the Central Bank to manage short-term liquidity in the banking system, thereby influencing interbank interest rates and supporting overall monetary policy objectives for Sri Lanka’s economy.
Overnight Money Market Activity
The overnight money market saw significant transactions, providing a snapshot of immediate liquidity conditions. The Call Money Market recorded a weighted average rate of 8.96%, with rates fluctuating between a minimum of 8.85% and a maximum of 9.00%. The total gross amount transacted in the Call Money Market stood at Rs. 12,400 million, resulting in a net amount of Rs. 11,900 million.
Similarly, the Repo Market’s weighted average rate was marginally higher at 9.00%, with rates ranging from 8.95% to 9.05%. The total gross amount for Repo Market transactions was substantially larger, reaching Rs. 74,451 million, and a net amount of Rs. 74,350 million, indicating active borrowing and lending against collateral.
Central Bank’s Open Market Operations
The CBSL conducted two key repo auctions today to either inject or absorb liquidity from the market, demonstrating its proactive approach to maintaining financial stability.
Overnight Repo Auction
An Overnight Repo Auction was offered for Rs. 60,000 million, with settlement and maturity both set for 25 September and 28 September 2026 respectively. The auction received bids totaling Rs. 17,500 million, all of which were accepted by the CBSL. The weighted average yield for this auction was 8.72%, with accepted rates ranging from a minimum of 8.71% to a maximum of 8.75%. This indicates a partial subscription to the amount offered, suggesting a measured need for overnight liquidity by market participants.
Short Term Repo Auction
A Short Term Repo Auction was also conducted, offering Rs. 30,000 million for a 7-day maturity, maturing on 2 October 2026. This auction saw full subscription, with bids received amounting to Rs. 30,000 million, all of which were accepted. The weighted average yield for the 7-day repo was 8.74%, with the minimum and maximum accepted rates both at 8.74% and 8.75% respectively, pointing to strong demand for short-term funds at competitive rates.
Standing Facility Utilization
Market participants also utilized the CBSL’s standing facilities. A significant amount of Rs. 90,415 million was placed under the Standing Deposit Facility (SDF). This indicates that commercial banks had excess liquidity which they chose to deposit with the Central Bank overnight. There was no recorded usage of the Standing Lending Facility (SLF), suggesting that overall system liquidity was comfortable, and banks did not require immediate emergency funding from the CBSL.
CBSL’s Treasury Bill/Bonds Holdings
The Central Bank’s portfolio of government securities remains substantial, with Treasury Bill and Bond holdings recorded at a face value of Rs. 2,492,619.35 million. The book value of these holdings stood at Rs. 1,534,387.77 million. These holdings are an integral part of the CBSL’s balance sheet and a tool for long-term monetary management.
Implications for Market Liquidity
Today’s OMO results, particularly the significant use of the Standing Deposit Facility and the full subscription of the short-term repo auction, suggest that while there is ample liquidity within the banking system, there is also a healthy demand for short-term funding. The CBSL’s active management through these operations ensures that interest rates remain aligned with its policy corridor, contributing to the broader financial stability of the Sri Lankan economy.
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