Sri Lanka sells Rs113bn in Treasury bills, yields mostly flat

Wednesday July 2, 2025 3:31 pm

ECONOMYNEXT – Sri Lanka has sold 113 billion rupees of Treasury bills, with yields mostly flat across maturities, data from the state debt office showed.

The 3-month yield was flat at 7.55 percent, with 25 billion rupees offered and 12.4 billion sold.

The 6-month yield was up 3 basis points at 7.78 percent, with 53 billion offered and 42 billion sold.

The 12-month yield was flat at 7.94 percent with 35 billion rupees of bills offered and 58.5 billion rupees bills sold.

177.4 billion bids were received.

The 3-month and 6-month bills are available on tap at the weighted average yield.

The settlement date is July 4 (Colombo/Jul2/2025)

Wednesday July 2, 2025 3:48 pm

ECONOMYNEXT – Sri Lanka does not have capacity to store fuel stock for two months though the island nation was confirmed to have fuel for two months, state-run Ceylon Petroleum Corporation (CPC) Chairman Janaka Rajakaruna said.

His statement comes after public criticism over fuel price hike for July after some government ministers said the country has fuel stocks for two months.

The CPC increased the price of widely used Octane 92 petrol by 12 rupees to 305 rupees per litre while increased diesel by 15 rupees and kerosene by 7 rupees with effect from July 1.

“We don’t have the capacity to stock such a large quantity because we had not updated our storage facilities,” Rajakaruna said in a recorded video disseminated to the media on Tuesday (01) through the Department of Government Information.

“We have not repaired the pipelines for years in uploading as well. So we have to take the industry forward with a lot of difficulties. We are in the process of rapidly updating them. Once we complete them only, we will be able to store fuel for two months.”

Cabinet Spokesman Nalinda Jayatissa on June 17 said Sri Lanka has adequate storage of fuel and it has already ordered enough refined and crude oil for the next two-and-a-half months.

His statement came after reports of motorists queuing near fuel pumps in some parts of the country over rumours that the country may run out of fuel due to developments in the Middle East after Israel attacked Iran.

The CPC chairman said the government did not say that it has fuel stock for two months.

“What we said was we had fuel stocks ordered and confirmed for two months,” he said.

“It does not mean that we had already unloaded and stocked fuel (for two months) in tanks.”

“What we said was there was some quantity in our tanks, some quantity was in the process of unloading, some quantity was sailing on its way to Sri Lanka. All of them were confirmed. So what we said was there won’t be a fuel shortage for two months,” Rajakaruna said.

He said receiving fuel and pricing fuel are two different processes.

“In the pricing decision, we consider the fuel price in the global market at the point of unloading. So it does not mean that we have stocks for two months,” the CPC chief said.

He said the price increase was due to increase in the global oil prices in June and some past agreements with other retail fuel operators operating locally.

“Apart from that, there was an unfortunate incident. When a single diesel cargo was sailing on the way, there was sudden increase in price,” between June 15-20, he said.

“The average price of that diesel had a huge impact on the overall average price.”

“Due to some past agreement, if the government decides the price after giving all the concessions to the people, we will have to pay the loss to other retailer fuel distributors.”

Sri Lankans experienced fuel shortage and long queues in 2022 when it ran out of foreign currency to buy fuel before mass street protests ousting the then president and government amid the government declaring a sovereign debt default. (Colombo/July 2/2025)

Wednesday July 2, 2025 2:45 pm

ECONOMYNEXT – Sri Lanka Cabinet of Ministers has chosen Engineering Corporation (SLEC) and Central Engineering Consultancy Bureau (CECB) to supply consultancy services for the construction of 1,996 houses under a Chinese donation programme for low income families, the government said.

The project has been awarded to Chinese constructors as Beijing is funding the 1996 housing units.

The project is implemented in three areas in Colombo suburb.

“Based on the recommendations of the Procurement Committee for selecting consultants appointed by the Cabinet of Ministers, approval for the resolution furnished by the Minister of Urban Development, Construction and Housing to award contracts to supply consultancy services…. was granted by the Cabinet of Ministers, the government said in its Cabinet decision document.

The consultancy services to build 575 housing units in Moratuwa and 108 housing units in Kottawa has been awarded to the Central Engineering Consultancy Bureau (CECB). The contract for construction of housing units in Moratuwa and Kottawa has been already awarded to China Railway 25th Bureau Group Company Ltd.

The Cabinet approved to give the consultancy services for the construction project of 586 housing units in Dematagoda and 112 housing units in Maharagama to the Sri Lanka Engineering Corporation (SLEC). Both contracts of these projects are awarded to China Harbour Engineering Company Ltd (CHEC).

The Cabinet also approved to award the contract of supplying consultancy services for the construction project of 615 housing units in Paliyagoda to the Sri Lanka Engineering Corporation (SLEC). China’s Shanxi Construction Investment Group Co. has been awarded the contract for construction. (Colombo/July 2/2025)

Wednesday July 2, 2025 12:37 pm

EONOMYNEXT – Sri Lanka’s cabinet of ministers have approved signing a memorandum of understanding with the Yeongwol provincial government of the Republic of Korea to send seasonal workers there, minister Nalinda Jayatissa said.

“Through the proposed memorandum of understanding, Sri Lankans will be given opportunities to serve in the agricultural and fisheries villages in the Yeongwol province for a 5-8 month period under the seasonal worker employment program,” Jayatissa said.

The seasonal worker employment program pilot project will facilitate the engagement of Sri Lankan labourers under South Korea’s E-8 visa category.

A previous scheme to send workers under the category to South Korea faced issues as some workers overstayed.

The South Korean Government seasonal worker program was introduced to address the scarcity of labor in the country’s agriculture and fisheries sectors.

The program allows for South Korean provincial council institutes to recruit foreign workers legally for a short term.

“Discussions have been conducted through diplomatic channels with the interested local governments.” (Colombo/Jul2/2025)