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.

The Weighted Average Yield Rates (WAYR) saw a significant jump compared to the previous auction: 91-Day Bills yield rose to 9.36%, up from 8.18%; 182-Day Bills yield increased to 9.68% from 8.25%; and 364-Day Bills yield climbed to 9.83%, compared to 8.49% previously.

The Public Debt Management Office (PDMO) accepted a total of Rs 95,559 million (m) from the auction, despite offering Rs 140,000 m. Total bids received amounted to Rs 172,345 m, 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 29 May 2026.