RW Govt. raises T-bill ceiling to Rs. 6 t

• Cabinet approves T-bill ceiling to be hiked to Rs. 6 t up from the current Rs. 5 t
• Proposal to be tabled in Parliament for approval soon

The Cabinet of Ministers on Tuesday approved a proposal to raise the limit on the issuance of Treasury Bills to Rs. 6,000 billion, up from the current Rs. 5,000 billion approved by the Parliament previously. Cabinet Co-spokesman Minister Dr. Bandula Gunawardena yesterday said the approved proposal will be tabled in Parliament in the coming days. 

According to a release by the Department of Government Information, the total balance of Treasury Bills to be paid at the end of March 2023 is Rs. 4,636 billion. Approval of the Parliament has been granted for a gross borrowing limit of Rs. 4,979 billion for the year 2023. 

“It has been estimated that Rs. 3,526 billion from domestic sources and Rs. 1,453 billion from foreign sources must be obtained. Domestic borrowings are mainly secured by the Government through the issuance of Treasury Bills and Treasury Bonds. Therefore the requirement of revising the existing maximum limit already existing for the issuance of Treasury Bills has been recognized,” the release said. 

“Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his office as the Minister of Finance, Economic Stabilization and National Policies to raise the limit on the issuance of Treasury Bills up to Rs. 6,000 billion as well as to table a proposal to the Parliament for the purpose,” it added. (MB)