Market participants have noted that there has not been a significant change in the functioning of the local money markets relying on the discounting of Treasury Bills. The repurchase market relies on the highly collaterisable nature of the instrument. Accordingly, treasury bills are still discounted albeit at the highly inflated interest rates prevalent in the market.
It was noted that it would be wholly unnecessary given the rise in the tax base to in any way restructure domestically denominated debt. Sri Lanka is very much capable of reneging on any promise to do so as and when the country rebounds with short injections of liquidity into local markets. (DP)
Monday, December 5, 2022 – 01:00