Colombo, September 28, 2026 – The Central Bank of Sri Lanka (CBSL) today released its comprehensive update on Open Market Operations (OMO), detailing crucial interventions and market activity as of September 28, 2026. This announcement, originating from the Market Operations Department, underscores the CBSL’s proactive stance in managing liquidity and ensuring stability within the nation’s financial system.
Overnight Money Market Dynamics
The overnight money market experienced notable activity across both its Call Money and Repo segments. The Call Money Market recorded a weighted average rate of 8.95%, with transaction rates ranging from a minimum of 8.85% to a maximum of 8.98%. Total gross transactions in this segment amounted to Rs. 15,060 million, with the net amount mirroring this figure, indicating steady demand.
In the Repo Market, the weighted average rate settled at 9.02%, with rates observed between 8.98% (minimum) and 9.05% (maximum). The volume of transactions was significantly higher, with a total gross amount of Rs. 83,322 million transacted, and a net amount of Rs. 83,090 million, reflecting robust interbank lending against collateral.
Central Bank’s Open Market Operations
To further calibrate systemic liquidity and guide short-term interest rates, the CBSL conducted two specific Open Market Operations:
Overnight Repo Auction
An Overnight Repo Auction was executed on September 28, 2026, with settlement on the same day and maturity on September 29, 2026. The Central Bank offered Rs. 60,000 million to the market. Bids received totalled Rs. 38,500 million, all of which were fully accepted. The Weighted Average Yield for this overnight facility was set at 8.75%, with accepted rates ranging from a minimum of 8.74% to a maximum of 8.75%.
Short-Term Repo Auction
Additionally, a Short-Term Repo Auction was conducted, offering a 7-day maturity facility, settling on September 28, 2026, and maturing on October 5, 2026. The CBSL offered Rs. 40,000 million. The market responded with bids totalling Rs. 20,000 million, which were entirely accepted by the Central Bank. This auction concluded with a Weighted Average Yield of 8.75%, with both the minimum and maximum accepted rates also registering at 8.75%.
Standing Facility Utilisation and CBSL Holdings
Liquidity management by commercial banks also involved the CBSL’s Standing Facilities. The Standing Deposit Facility (SDF) saw significant utilisation, with banks depositing Rs. 92,617 million with the Central Bank. This indicates a substantial amount of surplus liquidity in the banking system. Conversely, there was no utilisation of the Standing Lending Facility (SLF) on this date, suggesting adequate liquidity for short-term needs without recourse to the penal lending facility.
The Central Bank’s balance sheet also reflects its long-term market presence through its holdings of Treasury Bills and Bonds. As of September 28, 2026, the face value of these holdings stood at Rs. 2,492,619.35 million, with a corresponding book value of Rs. 1,532,504.27 million. These holdings are key components of the CBSL’s monetary policy toolkit and market influence.
These detailed operations highlight the Central Bank of Sri Lanka’s meticulous management of the domestic money market, a critical function for steering monetary conditions and ensuring an orderly financial environment essential for national economic stability.
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