Government to raise Treasury bill ceiling to Rs.6tn

The Cabinet green light has been granted to increase the Treasury bill ceiling to Rs.6 trillion, from the current Rs.5 trillion maximum limit.

President Ranil Wickremasinghe, in his capacity as the Finance, Economic Stabilisation and National Policies Minister, this week sought the approval of the Cabinet of Ministers to increase the maximum limit on the issuance of Treasury bills up to Rs.6 trillion and to table the proposal in Parliament.

In November last year, Parliament approved the Treasury bill ceiling to be increased to Rs.5 trillion. 

According to the Government Information Department, the total outstanding Treasury bill stock stood at Rs.4.63 trillion at end-March, this year.

For 2023, Parliament has approved the Rs.4.979 trillion gross borrowing limit, which consists of Rs.3.526 trillion from domestic sources and Rs.1.45 trillion from foreign sources. 

“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 recognised,” the Government Information Department said.

Treasury bills are issued in three-month, six-month and one-year tenures.