Sierra Leone’s public finances came under renewed pressure in the first quarter of 2026, with fresh data showing a steep contraction in short‑term government financing and a rapid drawdown of available cash balances.

Ways and Means advances — the overdraft facility provided by the Bank of Sierra Leone — fell by SLE 744 million, signalling a deliberate effort by the government to curb reliance on central bank borrowing. The reduction aligns with ongoing commitments to restore monetary discipline and limit inflationary pressures linked to excessive overdraft use.

However, the tightening came at a cost. Government bank balances dropped by SLE 3.96 billion over the same period, indicating significant cash depletion across treasury accounts. Analysts say the decline reflects both constrained revenue inflows and rising expenditure obligations early in the fiscal year.

Treasury Bills provided only modest relief, generating SLE 328 million in net financing — far below the levels typically required to offset short‑term fiscal gaps. By the end of March 2026, the combined effect of reduced overdraft access, limited T‑Bill uptake, and falling cash reserves pushed overall net financing flows into negative territory, closing the quarter at – SLE 1.16 billion. Fiscal observers warn that unless revenue performance strengthens or external budget support materialises, the government may face tighter liquidity conditions in the months ahead.