Yields on Sri Lankan Treasury bills rose sharply across all maturities at the primary auction held Tuesday (26). This upward movement follows the Central Bank of Sri Lanka's (CBSL) recent decision to increase the Overnight Policy Rate (OPR), a move aimed at tightening monetary conditions as detailed in the Monetary Policy Review No. 3 of 2026.

Yield Rates Move Upward Post-OPR Hike

The Weighted Average Yield Rates (WAYR) saw a significant jump compared to the previous auction:

• 91-Day Bills: The yield rose to 9.36%, up from 8.18%.
• 182-Day Bills: The yield increased to 9.68% from 8.25%.
• 364-Day Bills: The yield climbed to 9.83%, compared to 8.49% previously.

The Public Debt Management Office (PDMO) accepted a total of Rs. 95,559 million from the auction, despite offering Rs. 140,000 million. Total bids received amounted to Rs. 172,345 million, indicating that while there was market interest, the government was selective in its acceptance at the higher rates.

Settlement for all accepted bids is scheduled for May 29, 2026.