The Central Bank of Sri Lanka (CBSL) reported steady overnight money market activity on 14 October 2025, reflecting continued stability in short-term liquidity conditions. The weighted average rates stood at 7.87 percent in the call money market and 7.89 percent in the repo market.
In a repo (repurchase) market, commercial banks borrow funds by selling government securities with an agreement to repurchase them later, usually overnight. This allows banks to manage short-term liquidity needs efficiently and helps the CBSL control market liquidity and interest rates.
CBSL’s Standing Deposit Facility recorded Rs. 179.5 billion, while the Standing Lending Facility stood at Rs. 8.4 billion. Treasury bill and bond holdings totalled Rs. 2.5 trillion, indicating strong liquidity management under the Bank’s monetary policy framework
