Business | Banking
Sri Lanka's Central Bank to add 21b rupees at 12%
Sri Lanka's on Friday announced central bank plans to add as much as 21 billion rupees ($194 million) to the banking system by buying government bonds at a reverse repurchase rate of 12 percent.
- Bloomberg
- Published: 10:42 October 24, 2008
Colombo: Sri Lanka's on Friday announced central bank plans to add as much as 21 billion rupees ($194 million) to the banking system by buying government bonds at a reverse repurchase rate of 12 per cent.
The Colombo-based Central Bank of Sri Lanka sells or buys securities on some business days, temporarily adjusting the amount of money in the banking system. Excess money typically fuels inflation.
On Thursday it drained 331 million rupees at the repurchase rate of 10.5 per cent and added 21.5 billion rupees at 12 per cent and 733 million rupees at 19 per cent through the so-called reverse repurchase standing facility.
The overnight money market rate was at 17.5 per cent as of 11:23am in Colombo, after closing at 16.5 per cent on Thursday, according to Hatton National Bank Ltd.
The Sri Lankan rupee was little changed at 108 rupees to the dollar, according to Hatton National.
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