Central Bank of Sri Lanka looking at introducing a new auction system for Treasury bills
The Central Bank of Sri Lanka has reportedly stated that the Bank is looking at introducing a new auction system for Treasury bills similar to a new auction it launched last year for Treasury bonds.
A statement by the Central Bank has stated that for bonds pre bid meetings are held regularly now, the auction calendar is announced in advance and a policy of accepting no more than the total offered amount has been adopted.
“Internal controls in relation to the issuance process have been strengthened and the operational manual has been updated,” the statement has said.
The move is part of measures to improve Central Bank governance recommended by a commission inquiring into alleged rigged auctions of government bonds during 2015 and 2016.
OSL take:
The Central Bank of Sri Lanka is looking at ensuring transparency as well as strengthening the operation of issuing Treasury bills thereby guarantying the security of one’s investment. Given the slow yet confident growth recorded by the Sri Lankan economy, investing in Sri Lankan Treasury bills and bonds will yield definite results to the respective investor.
| Article Code : | VBS/AT/20181016/Z_6 |