Banking System Liquidity Tightens as Excess Funds Decline
Sri Lanka's banking system liquidity falls to LKR 317.84Bn, extending a multi-session decline amid rising government securities yields.
Sri Lanka's banking system liquidity falls to LKR 317.84Bn, extending a multi-session decline amid rising government securities yields.
Sri Lanka Treasury bill yields climb 11-15bps across 91, 184 and 364-day tenors as short-term rates continue upward trend.
Foreign holdings of Sri Lankan government securities have climbed steadily since late July, even as foreign investors remain net sellers of equities.
Foreign investor holdings of Sri Lankan government securities climbed to LKR 213.4Bn, extending a seven-week uptrend of roughly 13%.
Excess liquidity in Sri Lanka's banking system dropped to LKR 347.55Bn from LKR 381.40Bn, coinciding with a week of higher bond market activity.
Treasury bond yields climb up to 20bps week-on-week in Sri Lanka, with the steepest moves in the five-to-nine-year segment of the curve.
Government bond yields climb on the belly of the curve as markets brace for a LKR 150bn Treasury bond auction on Thursday.
Sri Lanka's Treasury bill yields eased 8-17bps across 91-day, 184-day and 364-day tenors at the latest auction, signalling lower short-term borrowing costs.
Excess liquidity in Sri Lanka's banking system rises to LKR 362.14Bn even as government bond yields climb on selling pressure.
NSB has joined EDEX Expo Mid-Year 2026 as its Official Banking Partner for the first time, strengthening its focus on youth education, financial.