-
ஜெனரல்
In a recent disclosure, the Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, revealed that the CBSL faced a substantial Day One Loss exceeding Rs. 760 billion following the restructuring of approximately Rs. 2.5 trillion worth of CBSL debt through the Domestic Debt Optimization (DDO) initiative. This restructuring led to a one-off loss of Rs. 766.4 billion to the CBSL's balance sheet, contributing to a net loss of Rs. 114.4 billion in 2023. Notably, this loss contrasts with a net loss of Rs. 374.3 billion reported in 2022. The swing in financial performance can be attributed to an exchange revaluation gain of Rs. 140.1 billion in 2023, a significant improvement from the exchange revaluation loss of Rs. 610.1 billion in the previous year. The CBSL cited higher interest income driven by increased foreign reserves, augmented trading gains, and amplified unrealized mark-to-market gains from Forex (FX) and FX SWAPS as key factors contributing to increased net operating income. The restructuring involved converting CBSL’s Provisional Advances to the Government amounting to Rs. 345 billion and Treasury Bills purchased from the Government amounting to Rs. 2,368 billion into new Treasury Bonds and Bills, featuring a stepped-down coupon interest profile. These new instruments carried varying maturity dates, with Treasury Bills maturing between February 2024 and September 2024, and Treasury Bonds maturing between 6 years and 15 years, accompanied by stepped coupon interest rates of 12.4% until 2024 (incl.), 7.5% until 2026 (incl.), and 5% from 2027 until maturity. However, despite the positive operational performance, the significant Day One Loss incurred through the DDO restructuring ultimately led to a net loss for the year 2023, amounting to Rs. 114.4 billion, which otherwise could have resulted in a net profit. This restructuring, while posing a financial challenge in the short term, is viewed as a substantial contribution by the CBSL towards reducing the overall debt burden of the Government, offering a significant relief to the populace.
