The 3-month yield fell 01 basis point to 11.36 percent. The 6-month yield rose 04 basis points to 12.95 percent.
The debt office sold 4.0 billion rupees in three month bills, 12.4 billion rupees in 6-month bills and 1.6 billion rupees in 12-month bills.
If the deficit is financed by Treasury bills sold to the public (and not the Central Bank) Sri Lanka can keep its exchange rate steady and inflation around the levels of the anchor US currency.
Deficit spending by selling Treasury bills to the public transfer spending power from the citizens to the state and rulers.
The process does not create fresh demand to pressure the country's dollar peg or inflation.