Developing a Deep and Liquid Bond Market - Experience of Sri Lanka

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Developing a Deep and Liquid Bond Market - Experience of Sri Lanka. Presentation by K.G.D.D.Dheerasinghe Assistant to the Governor Central Bank of Sri Lanka. Development of the Bond Market Events of Significance. - PowerPoint PPT Presentation

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  • Developing a Deep and Liquid Bond Market - Experience of Sri LankaPresentation by K.G.D.D.DheerasingheAssistant to the GovernorCentral Bank of Sri Lanka

  • Development of the Bond MarketEvents of Significance1923 - Issue of loans commenced under the Colonial Treasury Bill Ordinance by Crown Agents in U.K.1937 - Issue of Rupee Loans commenced under RSSO No.7 of 19371941 - Issue of Treasury Bills commenced under LTBO (Chapter 287)1950 - Public debt management was vested with the Central Bank under the Monetary Law Act.1981 - A secondary market window was opened for Treasury Bills by the Central Bank. 1986 - Weekly Treasury Bill auctions commenced1992 - Primary Dealers were appointed.

  • Development of the Bond Market contd...1993 - Repo window for Treasury Bills was introduced by the CBSL.1994 - Primary Dealer system was recognised.1995 - Non-competitive bidding at primary auctions was phased out.1995 - Reverse Repo window was introduced by the CBSL.RSSO, LTBO and MLA were amended to enable scripless issue of Treasury Bills and Treasury Bonds.1997 - Issue of Treasury Bonds commenced.2000 - Dedicated Primary Dealers were appointed2000 - Primary Dealer supervision commenced.

  • Development of the Bond Market contd...2001 - US Dollar denominated Sri Lanka Development Bonds were issued.2002 - Fiscal Management Responsibility Act was enacted.2003 - Issue of 10,15 & 20 year Treasury Bonds commenced.2003 - Bloomberg Bond Trading System for Primary Dealers was introduced.2004 - RSSO,LTBO & MLA were amended to enable the trading of scripless securities.Scripless Securities Settlement System (SSSS) and Central Depository System (CDS) commenced operations.

  • Legal Framework(a) Appropriation Act - Authority for annual borrowing limit(b) Local Treasury Bills Ordinance - Issuence of T-Bills(c ) Registered Stock & Securities Ordinance - Issuence of T-Bonds & Rupee Loans(d) Foreign Loans Act - Borrowing from foreign sources(e) Monetary Law Act - Debt management as a function of Central Bank(f) Fiscal Management Responsibility Act - Guidelines and debt sustainability

  • Organizational FrameworkPARLIAMENT - authority to borrow and accountable to the public MINISTER OF FINANACE - delegates authority to Central Bank MINISTRY OF FINANCE / TREASURY-Principal - authority & accountability - Contracting non-commercial foreign borrowing CENTRAL BANK - Agent- Iisuence and debt service PRIMARY DEALERS- market makingBANKS, PENSION/PROVIDENT/INSURANCE FUNDS - Investors and Secondary Market Dealers

  • Implementation of the Government Securities ProgrammePreparation of the borrowing calendarRelease of information to the market Regular meeting of the Debt Management Committee ( weekly)Regular meeting with Primary Dealers (weekly)Issuance of domestic debt: e.g. Auction, Tap, Placements

  • Organization of Public Debt DepartmentFront Office - market/public relations, primary issuance, market information, investor awareness

    Middle Office - research inputs, risk analysis, issuance techniques, product development, database

    Back Office - payment and settlement, servicing of concessional foreign debt, CS-DRMS

    Support Services- human resources, training, IT support, maintenance.

  • Budget Deficit and Borrowing Requirement (as a % of GDP) 1997 2000 2003Total Revenue 18.5 16.6 15.7Total Expenditure 26.4 26.7 23.7Overall Deficit - 7.9 - 9.9 - 8.0Finanacing 7.9 9.9 8.0 Foreign 1.9 0.4 2.9 Domestic 3.4 9.4 4.5 Other/Privatization 2.5 0.1 0.6

  • Sheet1

    Table 1

    Composition of Tradeble & Non Tradeble debt in domestic debt

    199720002003

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Tradable debt

    1.1 Treasury Bonds10,0002.74204,12433.85483,10750.81

    (medium - long term)

    1.2 Treasury Bills114,99631.55134,99622.39219,29523.06

    (short term 91-364 days)

    2. Non Tradable

    Rupee Loans239,47565.70263,88843.76248,41426.13

    Total364,471100.00603,008100.00950,816100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 2

    Distribution of Bonds by issues

    1997-9820002002-03

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1 Government10,00078.94125,32298.39214,79798.63

    2 Corporate2,66821.062,0561.612,9791.37

    Total12,668100.00127,378100.00217,776100.00

    Source : PDD, Central Bank of Sri Lanka & CSE.

    Note. Corporate debt issues are for 1998, 2000 and 2002.

    Table 3

    Ownership of Government Securities

    199720002003

    Ownervalue (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Domestic Debt

    1.1 Banking Sector

    Central Bank19,7702.5997,7788.0244,5872.39

    Commercial Banks80,76610.57101,2528.31183,8249.86

    1.2 Non-Bank Sector

    Savings Institutions63,0288.2587,2637.16138,9397.45

    Sinking Funds1000.011000.011000.01

    Insurance Funds9,2921.2218,9691.5624,8281.33

    Provident and Pension Funds144,40618.90218,61517.94333,28917.88

    Official Funds15,4382.0224,6402.0240,7392.19

    Private Business and Individuals48,6386.37120,1169.86246,20913.21

    1.3 Other6,3020.827,9270.657,4530.40

    2. Foreign Debt376,33149.25542,04044.48843,88245.28

    Total764,071100.001,218,700100.001,863,850100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 4

    Transaction Numbers & Volumes of the SSS System

    PeriodNumber of TransactionsVolume (Rs. Mil)

    February - 20045,696481,719.01

    March - 200414,037503,271.56

    April - 200411,500523,349.47

    01-10, May - 200464091,086.42

    Total31,8731,599,426.46

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 5

    Growth of Depository Accounts of CDS

    PeriodNo.of A/Cs

    February - 200410,893

    March - 200412,483

    April - 200413,781

    May - 200413,846

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 6

    Domestic Financing of Fiscal Deficit(Rs. billions)

    (Rs. billions)199720002003

    By Instrument39.6118.579.7

    Long term Bonds1090.6137.1

    Short Term Bills-4.76.114.9

    Non-tradable Securities33.51.8-39.3

    US$ denominated Bonds---15.2

    Other Loans-9.515.8-18.3

    Long term Bonds

    By Source39.6118.579.7

    Bank Borrowing-2.256.5-20.9

    Non-Bank Borrowing41.862100.7

    Source : Central Bank of Sri Lanka

    Table7

    Government Domestic Debt Indicators

    199720002003

    Govt. Debt/GDP85.896.9105.9

    Domestic Debt/GDP43.653.857.9

    Total Debt Service/GDP9.41419.6

    Domestic Debt Service/ Govt. Revenue38.667.9108

    Domestic Debt Service/ Govt. Expenditure23.431.646.9

    Domestic Interest/GDP5.54.96.4

    Domestic Interest/ Govt. Current Expenditure2724.539.9

    Source : Central Bank of Sri Lanka

    Sheet2

    Sheet3

  • Sheet1

    Table 1

    Composition of Tradeble & Non Tradeble debt in domestic debt

    199720002003

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Tradable debt

    1.1 Treasury Bonds10,0002.74204,12433.85483,10750.81

    (medium - long term)

    1.2 Treasury Bills114,99631.55134,99622.39219,29523.06

    (short term 91-364 days)

    2. Non Tradable

    Rupee Loans239,47565.70263,88843.76248,41426.13

    Total364,471100.00603,008100.00950,816100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 2

    Distribution of Bonds by Issuer

    1997-9820002002-03

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1 Government10,00078.94125,32298.39214,79798.63

    2 Corporate2,66821.062,0561.612,9791.37

    Total12,668100.00127,378100.00217,776100.00

    Source : PDD, Central Bank of Sri Lanka & CSE.

    Note. Corporate debt issues are for 1998, 2000 and 2002.

    Table 3

    Ownership of Government Securities

    199720002003

    Ownervalue (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Domestic Debt

    1.1 Banking Sector

    Central Bank19,7702.5997,7788.0244,5872.39

    Commercial Banks80,76610.57101,2528.31183,8249.86

    1.2 Non-Bank Sector

    Savings Institutions63,0288.2587,2637.16138,9397.45

    Sinking Funds1000.011000.011000.01

    Insurance Funds9,2921.2218,9691.5624,8281.33

    Provident and Pension Funds144,40618.90218,61517.94333,28917.88

    Official Funds15,4382.0224,6402.0240,7392.19

    Private Business and Individuals48,6386.37120,1169.86246,20913.21

    1.3 Other6,3020.827,9270.657,4530.40

    2. Foreign Debt376,33149.25542,04044.48843,88245.28

    Total764,071100.001,218,700100.001,863,850100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 4

    Transaction Numbers & Volumes of the SSS System

    PeriodNumber of TransactionsVolume (Rs. Mil)

    February - 20045,696481,719.01

    March - 200414,037503,271.56

    April - 200411,500523,349.47

    01-10, May - 200464091,086.42

    Total31,8731,599,426.46

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 5

    Growth of Depository Accounts of CDS

    PeriodNo.of A/Cs

    February - 200410,893

    March - 200412,483

    April - 200413,781

    May - 200413,846

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 6

    Domestic Financing of Fiscal Deficit(Rs. billions)

    (Rs. billions)199720002003

    By Instrument39.6118.579.7

    Long term Bonds1090.6137.1

    Short Term Bills-4.76.114.9

    Non-tradable Securities33.51.8-39.3

    US$ denominated Bonds---15.2

    Other Loans-9.515.8-18.3

    Long term Bonds

    By Source39.6118.579.7

    Bank Borrowing-2.256.5-20.9

    Non-Bank Borrowing41.862100.7

    Source : Central Bank of Sri Lanka

    Table7

    Government Domestic Debt Indicators

    199720002003

    Govt. Debt/GDP85.896.9105.9

    Domestic Debt/GDP43.653.857.9

    Total Debt Service/GDP9.41419.6

    Domestic Debt Service/ Govt. Revenue38.667.9108

    Domestic Debt Service/ Govt. Expenditure23.431.646.9

    Domestic Interest/GDP5.54.96.4

    Domestic Interest/ Govt. Current Expenditure2724.539.9

    Source : Central Bank of Sri Lanka

    Sheet2

    Sheet3

  • Sheet1

    Table 1

    Composition of Tradeble & Non Tradeble debt in domestic debt

    199720002003

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Tradable debt

    1.1 Treasury Bonds10,0002.74204,12433.85483,10750.81

    (medium - long term)

    1.2 Treasury Bills114,99631.55134,99622.39219,29523.06

    (short term 91-364 days)

    2. Non Tradable

    Rupee Loans239,47565.70263,88843.76248,41426.13

    Total364,471100.00603,008100.00950,816100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 2

    Distribution of Bonds by issues

    1997-9820002002-03

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1 Government10,00078.94125,32298.39214,79798.63

    2 Corporate2,66821.062,0561.612,9791.37

    Total12,668100.00127,378100.00217,776100.00

    Source : PDD, Central Bank of Sri Lanka & CSE.

    Note. Corporate debt issues are for 1998, 2000 and 2002.

    Table 3

    Ownership of Government Securities

    199720002003

    Ownervalue (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Domestic Debt

    1.1 Banking Sector

    Central Bank19,7702.5997,7788.0244,5872.39

    Commercial Banks80,76610.57101,2528.31183,8249.86

    1.2 Non-Bank Sector

    Savings Institutions63,0288.2587,2637.16138,9397.45

    Sinking Funds1000.011000.011000.01

    Insurance Funds9,2921.2218,9691.5624,8281.33

    Provident and Pension Funds144,40618.90218,61517.94333,28917.88

    Official Funds15,4382.0224,6402.0240,7392.19

    Private Business and Individuals48,6386.37120,1169.86246,20913.21

    1.3 Other6,3020.827,9270.657,4530.40

    2. Foreign Debt376,33149.25542,04044.48843,88245.28

    Total764,071100.001,218,700100.001,863,850100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 4

    Transaction Numbers & Volumes of the SSS System

    PeriodNumber of TransactionsVolume (Rs. Mil)

    February - 20045,696481,719.01

    March - 200414,037503,271.56

    April - 200411,500523,349.47

    01-10, May - 200464091,086.42

    Total31,8731,599,426.46

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 5

    Growth of Depository Accounts of CDS

    PeriodNo.of A/Cs

    February - 200410,893

    March - 200412,483

    April - 200413,781

    May - 200413,846

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 6

    Domestic Financing of Fiscal Deficit(Rs. billions)

    (Rs. billions)199720002003

    By Instrument39.6118.579.7

    Long term Bonds1090.6137.1

    Short Term Bills-4.76.114.9

    Non-tradable Securities33.51.8-39.3

    US$ denominated Bonds---15.2

    Other Loans-9.515.8-18.3

    Long term Bonds

    By Source39.6118.579.7

    Bank Borrowing-2.256.5-20.9

    Non-Bank Borrowing41.862100.7

    Source : Central Bank of Sri Lanka

    Table7

    Government Domestic Debt Indicators

    199720002003

    Govt. Debt/GDP85.896.9105.9

    Domestic Debt/GDP43.653.857.9

    Total Debt Service/GDP9.41419.6

    Domestic Debt Service/ Govt. Revenue38.667.9108

    Domestic Debt Service/ Govt. Expenditure23.431.646.9

    Domestic Interest/GDP5.54.96.4

    Domestic Interest/ Govt. Current Expenditure2724.539.9

    Source : Central Bank of Sri Lanka

    Sheet2

    Sheet3

  • Sheet1

    Table 1

    Composition of Tradeble & Non Tradeble debt in domestic debt

    199720002003

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Tradable debt

    1.1 Treasury Bonds10,0002.74204,12433.85483,10750.81

    (medium - long term)

    1.2 Treasury Bills114,99631.55134,99622.39219,29523.06

    (short term 91-364 days)

    2. Non Tradable

    Rupee Loans239,47565.70263,88843.76248,41426.13

    Total364,471100.00603,008100.00950,816100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 2

    Distribution of Bonds by issues

    1997-9820002002-03

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1 Government10,00078.94125,32298.39214,79798.63

    2 Corporate2,66821.062,0561.612,9791.37

    Total12,668100.00127,378100.00217,776100.00

    Source : PDD, Central Bank of Sri Lanka & CSE.

    Note. Corporate debt issues are for 1998, 2000 and 2002.

    Table 3

    Ownership of Government Securities

    199720002003

    Ownervalue (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Domestic Debt

    1.1 Banking Sector

    Central Bank19,7702.5997,7788.0244,5872.39

    Commercial Banks80,76610.57101,2528.31183,8249.86

    1.2 Non-Bank Sector

    Savings Institutions63,0288.2587,2637.16138,9397.45

    Sinking Funds1000.011000.011000.01

    Insurance Funds9,2921.2218,9691.5624,8281.33

    Provident and Pension Funds144,40618.90218,61517.94333,28917.88

    Official Funds15,4382.0224,6402.0240,7392.19

    Private Business and Individuals48,6386.37120,1169.86246,20913.21

    1.3 Other6,3020.827,9270.657,4530.40

    2. Foreign Debt376,33149.25542,04044.48843,88245.28

    Total764,071100.001,218,700100.001,863,850100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 4

    Transaction Numbers & Volumes of the SSS System

    PeriodNumber of TransactionsVolume (Rs. Mil)

    February - 20045,696481,719.01

    March - 200414,037503,271.56

    April - 200411,500523,349.47

    01-10, May - 200464091,086.42

    Total31,8731,599,426.46

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 5

    Growth of Depository Accounts of CDS

    PeriodNo.of A/Cs

    February - 200410,893

    March - 200412,483

    April - 200413,781

    May - 200413,846

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 6

    Domestic Financing of Fiscal Deficit(Rs. billions)

    199720002003

    By Instrument39.6118.579.7

    Long term Bonds1090.6137.1

    Short Term Bills-4.76.114.9

    Non-tradable Securities33.51.8-39.3

    US$ denominated Bonds---15.2

    Other Loans-9.515.8-18.3

    By Source39.6118.579.7

    Bank Borrowing-2.256.5-20.9

    Non-Bank Borrowing41.862100.7

    Source : Central Bank of Sri Lanka

    Table7

    Government Domestic Debt Indicators

    199720002003

    Govt. Debt/GDP85.896.9105.9

    Domestic Debt/GDP43.653.857.9

    Total Debt Service/GDP9.41419.6

    Domestic Debt Service/ Govt. Revenue38.667.9108

    Domestic Debt Service/ Govt. Expenditure23.431.646.9

    Domestic Interest/GDP5.54.96.4

    Domestic Interest/ Govt. Current Expenditure2724.539.9

    Source : Central Bank of Sri Lanka

    Sheet2

    Sheet3

  • Sheet1

    Table 1

    Composition of Tradeble & Non Tradeble debt in domestic debt

    199720002003

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Tradable debt

    1.1 Treasury Bonds10,0002.74204,12433.85483,10750.81

    (medium - long term)

    1.2 Treasury Bills114,99631.55134,99622.39219,29523.06

    (short term 91-364 days)

    2. Non Tradable

    Rupee Loans239,47565.70263,88843.76248,41426.13

    Total364,471100.00603,008100.00950,816100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 2

    Distribution of Bonds by issues

    1997-9820002002-03

    value (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1 Government10,00078.94125,32298.39214,79798.63

    2 Corporate2,66821.062,0561.612,9791.37

    Total12,668100.00127,378100.00217,776100.00

    Source : PDD, Central Bank of Sri Lanka & CSE.

    Note. Corporate debt issues are for 1998, 2000 and 2002.

    Table 3

    Ownership of Government Securities

    199720002003

    Ownervalue (Rs. Mil)%value (Rs. Mil)%value (Rs. Mil)%

    1. Domestic Debt

    1.1 Banking Sector

    Central Bank19,7702.5997,7788.0244,5872.39

    Commercial Banks80,76610.57101,2528.31183,8249.86

    1.2 Non-Bank Sector

    Savings Institutions63,0288.2587,2637.16138,9397.45

    Sinking Funds1000.011000.011000.01

    Insurance Funds9,2921.2218,9691.5624,8281.33

    Provident and Pension Funds144,40618.90218,61517.94333,28917.88

    Official Funds15,4382.0224,6402.0240,7392.19

    Private Business and Individuals48,6386.37120,1169.86246,20913.21

    1.3 Other6,3020.827,9270.657,4530.40

    2. Foreign Debt376,33149.25542,04044.48843,88245.28

    Total764,071100.001,218,700100.001,863,850100.00

    Source : PDD, Central Bank of Sri Lanka

    Table 4

    Transaction Numbers & Volumes of the SSS System

    PeriodNumber of TransactionsVolume (Rs. Mil)

    February - 20045,696481,719.01

    March - 200414,037503,271.56

    April - 200411,500523,349.47

    01-10, May - 200464091,086.42

    Total31,8731,599,426.46

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 5

    Growth of Depository Accounts of CDS

    PeriodNo.of A/Cs

    February - 200410,893

    March - 200412,483

    April - 200413,781

    May - 200413,846

    Source : CDS, PDD, Central Bank of Sri Lanka

    Table 6

    Domestic Financing of Fiscal Deficit(Rs. billions)

    (Rs. billions)199720002003

    By Instrument39.6118.579.7

    Long term Bonds1090.6137.1

    Short Term Bills-4.76.114.9

    Non-tradable Securities33.51.8-39.3

    US$ denominated Bonds---15.2

    Other Loans-9.515.8-18.3

    Long term Bonds

    By Source39.6118.579.7

    Bank Borrowing-2.256.5-20.9

    Non-Bank Borrowing41.862100.7

    Source : Central Bank of Sri Lanka

    Table7

    Government Domestic Debt Indicators

    199720002003

    Govt. Debt/GDP85.896.9105.9

    Domestic Debt/GDP43.653.857.9

    Total Debt Service/GDP9.41419.6

    Domestic Debt Service/ Govt. Revenue38.667.9108

    Domestic Debt Service/ Govt. Expenditure23.431.646.9

    Domestic Interest/GDP5.54.96.4

    Domestic Interest/ Govt. Current Expenditure2724.539.9

    Source : Central Bank of Sri Lanka

    Sheet2

    Sheet3

  • Chart1

    121412.22

    121412.02

    11.513.6512.35

    11.513.8511.7

    11.513.8512.75

    11.513.7512.19

    10.512.7510.76

    10.512.7510.74

    10.512.7510.63

    10.512.7510.72

    9.7511.7510.68

    9.7511.7510.39

    9119.49

    9119.37

    9119.42

    9119.57

    8.2510.258.65

    8.2510.258.63

    8.2510.258.66

    7.59.57.85

    7.59.57.83

    78.57.48

    78.57.6

    78.57.59

    Repo

    Reverse Repo

    Call Avg.

    Per cent

    Figure 1Policy Interest Rates and Call Money Averate Rate

    Sheet1

    RepoReverse RepoCall Avg.

    Jan-02121412.22

    Feb-02121412.02

    Mar-0211.513.6512.35

    Apr-0211.513.8511.7

    May-0211.513.8512.75

    Jun-0211.513.7512.19

    Jul-0210.512.7510.76

    Aug-0210.512.7510.74

    Sep-0210.512.7510.63

    Oct-0210.512.7510.72

    Nov-029.7511.7510.68

    Dec-029.7511.7510.39

    Jan-039119.49

    Feb-039119.37

    Mar-039119.42

    Apr-039119.57

    May-038.2510.258.65

    Jun-038.2510.258.63

    Jul-038.2510.258.66

    Aug-037.59.57.85

    Sep-037.59.57.83

    Oct-0378.57.48

    Nov-0378.57.6

    Dec-0378.57.59

    Sheet1

    121412.22

    121412.02

    11.513.6512.35

    11.513.8511.7

    11.513.8512.75

    11.513.7512.19

    10.512.7510.76

    10.512.7510.74

    10.512.7510.63

    10.512.7510.72

    9.7511.7510.68

    9.7511.7510.39

    9119.49

    9119.37

    9119.42

    9119.57

    8.2510.258.65

    8.2510.258.63

    8.2510.258.66

    7.59.57.85

    7.59.57.83

    78.57.48

    78.57.6

    78.57.59

    Repo

    Reverse Repo

    Call Avg.

    Per cent

    Chart 10.5.4Policy Interest Rates and Call Money Averate Rate

    Sheet2

    Sheet3

  • Secondary Market - - Participants - Ownership Structure - Taxation Policy - Yield Curve

  • Chart1

    0.07150.07270.0782

    0.07050.0720.0776

    0.07060.07180.0778

    0.07440.07570.0878

    0.0760.07640.0904

    0.07630.07660.0918

    0.07440.07690.093

    0.0740.07730.0924

    0.0756100.0895

    0.07321515

    25/11/03

    31/12/03

    09/06/04

    Government SecuritiesSecondary Market Yield Curve

    SM,PM

    4/19/045/12/045/19/04

    Secondary Mkt.

    Date/Days25/11/0331/12/0309/06/04

    0.257.15%7.27%7.82%

    0.57.05%7.20%7.76%

    17.06%7.18%7.78%

    27.44%7.57%8.78%

    37.60%7.64%9.04%

    47.63%7.66%9.18%

    57.44%7.69%9.30%

    67.40%7.73%9.24%

    107.56%8.95%

    157.32%

    SM,PM

    25/11/03

    31/12/03

    09/06/04

    Government SecuritiesSecondary Market Yield Curve

  • Bond Market InfrastructureOnline Electronic Bidding SystemReal Time Gross Settlement SystemScripless Securities Settlement SystemBloomberg Bond Trading SystemColombo Stock Exchange - DEX System

  • Transaction Numbers and Volumes of the SSS SystemSource:CDS,PDD, Central Bank of Sri Lanka

    PeriodNumber of TransactionsVolume(Rs. Mil)February 2004 5,696 481,719.01March 200414,037 503,271.56April 200411,500 523,349.47May 2004 11,833 598,636.56Total43,0662,106,976.60

  • Growth of Depository Accounts of CDSSource: CDS,PDD,Central Bank of Sri Lanka

    PeriodNo:Of AccountsFebruary 200410,893March 200412,483April 200413,781May 200413,846

  • Regulatory FrameworkLicencing of Primary DealersPrimary Dealer Supervision - On Site Examination - Off Site SurveilanceRegulations, Directions and Guidelines

  • The EndThank You !