• 25% of T-bonds subjected to DDO 

Two State banks of Sri Lanka, Bank of Ceylon (BOC) and Peoples’ Bank have invested in 25% of the Treasury Bonds issued by the government by the end of 2022 while Commercial Bank of Ceylon PLC is the largest investor in bonds among the private banks, Senkadagala Finance Securities report revealed.

According to the report, BOC has invested Rs.1,239 billion in Treasury Bonds as of the end of 2022 and Peoples’ Bank has invested Rs.903 billion. Together, the two state banks own 25% of the total Treasury Bonds issued by the government by the end of 2022.

Moreover, the report revealed that Commercial Bank owns Rs.563 billion in Treasury Bonds, making it the largest listed commercial bank which has invested 23% of its assets in Treasury Bonds.

“Based on the decision which is finalising for the DDR, Commercial Bank will get the major positive/negative impacts on their market stability and performances,” Senkadagala Finance Securities said.

Sampath Bank is the second largest listed commercial bank which has invested 16% of its total assets in Treasury Bonds by owning Rs.219 billion worth of Treasury Bonds.

All ten banks, both state and private (excluding National Savings Bank) own Rs.3,261 billion out of the Rs.8,709 billion Treasury Bonds stock of the government by the end of 2022.

Seylan Bank and Hatton National Bank have invested Rs.90 billion and Rs.70 billion in Treasury Bonds respectively by the end of 2022.

The Government was expected to release the Domestic Debt Optimisation (DDO) plan in the later hours of Wednesday (28), after providing a five-day holiday period for the banks and markets to avoid any unnecessary panic among the general public.