Colombo, Sri Lanka – 01 September 2026 – The Central Bank of Sri Lanka (CBSL) today released its daily report on Open Market Operations (OMOs) for September 1, 2026, providing critical insights into the country’s money market liquidity and the central bank’s efforts to manage short-term interest rates. The data, published by the Market Operations Department, reflects the CBSL’s proactive approach to maintaining financial stability and supporting economic growth.
Open Market Operations are a key monetary policy tool used by central banks to influence the money supply and credit conditions in the economy. Through these operations, the CBSL either injects or absorbs liquidity from the financial system, thereby guiding interbank lending rates and overall market sentiment.
Overnight Money Market Activity
On September 1, 2026, the overnight money market saw significant activity across both the Call Money and Repo markets. The weighted average rates for the Call Money Market settled at 8.85%, with rates fluctuating between a minimum of 8.76% and a maximum of 8.90%. The total gross amount transacted in the Call Money Market stood at Rs. 53,720 million, with a net amount of Rs. 51,220 million.
The Repo Market recorded a slightly higher weighted average rate of 8.91%, with the minimum rate at 8.85% and the maximum at 8.95%. Transactions in the Repo Market amounted to Rs. 67,450 million for both gross and net totals, indicating robust short-term financing activity.
CBSL’s Open Market Operations Auctions
The CBSL conducted a series of Repo auctions to manage liquidity, offering various maturities:
- Overnight Repo Auction: The CBSL offered Rs. 40,000 million. Bids received totalled Rs. 6,000 million, all of which were accepted at a weighted average yield of 8.75%. The settlement occurred today, September 1, 2026, with maturity set for September 2, 2026.
- Short Term Repo Auction (7 Days): An amount of Rs. 40,000 million was offered for a 7-day tenor. The auction attracted bids worth Rs. 35,000 million, all accepted at a weighted average yield of 8.75%. This facility settles on September 1, 2026, and matures on September 8, 2026.
- Long Term Repo Auction (30 Days): For a longer horizon, the CBSL offered Rs. 10,000 million for 30 days. This auction saw significant demand, with bids totalling Rs. 23,000 million. The CBSL accepted the offered amount of Rs. 10,000 million at a weighted average yield of 9.15%. This auction settles on September 2, 2026, with maturity on October 2, 2026.
These auctions demonstrate the CBSL’s targeted approach to influencing liquidity across different tenors, with the varying yields reflecting the market’s perception of short-to-medium term liquidity conditions.
Standing Facility Utilization
Financial institutions also utilized the CBSL’s Standing Facilities, which serve as a safety net for daily liquidity management:
- The Standing Deposit Facility (SDF), used by banks to deposit excess liquidity with the CBSL, recorded an uptake of Rs. 101,826 million.
- Conversely, the Standing Lending Facility (SLF), which allows banks to borrow from the CBSL to cover shortfalls, was utilized for Rs. 4,068 million.
The substantial use of the SDF relative to the SLF typically indicates that there is generally ample liquidity in the banking system, with some institutions holding excess funds.
CBSL Treasury Bill/Bonds Holdings
The report also provided an update on the Central Bank’s holdings of government securities. As of September 1, 2026, the Face Value of CBSL’s Treasury Bill and Bond holdings stood at Rs. 2,492,619.35 million, with a corresponding Book Value of Rs. 1,545,433.28 million. These holdings are a key component of the CBSL’s balance sheet and a reflection of its past open market operations and government debt management strategies.
Today’s OMO details underscore the CBSL’s ongoing commitment to judicious liquidity management, a crucial factor in maintaining a stable interest rate environment and fostering economic recovery and growth in Sri Lanka.
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