Government of Sri Lanka’s (GoSL’s) face value money printing (FVMP) debt established two records yesterday due to a sustained lack of revenue.
They were hitting the highest FVMP debt figure of Rs 1,841,772.24 million (Rs 1.8418 trillion) and such debt entering the one hundredth (100th) consecutive market day to yesterday. The previous highest FVMP debt figure was Rs 1.8356 trillion established two days ago on Monday.
Yesterday over the previous day Tuesday, GoSL’s FVMP debt increased by 0.86 per cent (Rs 15,769 million/Rs 15.77 billion) to a record Rs 1,841,772.24 million (Rs 1.8418 trillion). However, this increase was non-demand pull inflationary, as it was used to meet an external commitment such as for the import of “essential” items and repayment of GoSL’s foreign debt.
Since and including 20 July, GoSL’s FVMP debt has been over Rs one trillion, when on 20 July it increased by 4.42 per cent (Rs 42,689 million) to Rs 1,008,148.42 million (Rs 1.0081 trillion) and has been over Rs one trillion up to yesterday.
Meanwhile, GoSL’s FVMP debt first passed the Rs 1.5 trillion milestone on 2 September 2021, when its FVMP debt increased by 10.85 per cent (Rs 12,755 million) to Rs 1,511,834.44 million (Rs 1.5118 trillion) and has been staying that way since.
In related developments, GoSL’s highest to the seventy third highest FVMP debt has been registered in the 73 consecutive market days to yesterday, though not necessarily in a particular order.
GoSL’s FVMP debt is equivalent to the FV of Central Bank of Sri Lanka’s (CBSL’s) Treasury (T) Bill and T Bond holdings.