The Sri Lanka rupee weakened slightly against the US dollar on Monday, while government bond yields stayed largely steady, reflecting cautious market sentiment ahead of a key Treasury bill auction.
Rupee slips against US dollar while bond market remains stable
The Sri Lanka rupee opened trading in the spot market at 302.01/04 to the US dollar, marking a marginal decline from Thursday’s level of 301.97/302.02. Dealers noted that while the rupee showed signs of pressure, government bond yields remained broadly stable, indicating balanced investor activity.
A bond maturing on December 15, 2026, was unchanged at 8.20/30 percent, while the December 2028 bond edged up slightly to 9.00/10 percent from 8.98/9.08 percent. The December 2029 bond was quoted flat at 9.50/55 percent. Meanwhile, the December 2032 bond stood at 10.35/40 percent, easing marginally from 10.35/45 percent. The November 2033 bond was quoted at 10.70/75 percent.
In the foreign exchange market, telegraphic transfer rates for the US dollar stood at 298.4000 for buying and 305.4000 for selling. The British pound was quoted at 401.9504 buying and 413.2922 selling, while the euro was at 347.4021 buying and 358.6073 selling.
Equity markets also opened on a positive note. The Colombo Stock Exchange reported gains with the All Share Price Index (ASPI) rising 0.52 percent, or 109.34 points, to 21,101, while the S&P SL20 index gained 0.16 percent, or 9.72 points, reaching 6,014.
The Central Bank of Sri Lanka announced plans to issue Rs 77,000 million in Treasury bills through an auction scheduled for September 10. Market participants are expected to closely monitor the outcome as it may influence both bond yields and currency movement in the coming weeks.