The Sri Lanka rupee opened weaker against the US dollar on Monday, while government bond yields remained largely unchanged and the Colombo Stock Exchange traded in negative territory.
Sri Lanka rupee weakens slightly while bond yields hold flat and stocks edge lower
The Sri Lanka rupee opened at 301.90/302.00 per US dollar, a slight decline from Friday’s close of 301.99/301.95, according to market dealers. Bond yields stayed mostly flat across maturities, signaling steady investor sentiment. A bond maturing on 15 December 2026 was quoted at 8.20/30 percent, while a 15 September 2027 bond held at 8.65/75 percent. The 15 March 2028 issue was seen at 8.88/95 percent, the 15 June 2029 bond at 9.40/50 percent, and the 15 December 2029 security at 9.50/55 percent. A longer-term bond maturing on 1 December 2032 was quoted at 10.38/45 percent, reflecting stable conditions in the debt market.
Foreign exchange telegraphic transfer rates showed the dollar at 298.5000 for buying and 305.5000 for selling. The British pound was quoted at 403.7314 buying and 415.0732 selling, while the euro stood at 347.8515 buying and 359.0567 selling.
Equity markets slipped into red territory, with the All Share Price Index (ASPI) down 0.08 percent, or 17.44 points, to 20,594, and the S&P SL20 falling 0.20 percent, or 17.05 points, to 5,861.
The Central Bank of Sri Lanka announced that Rs. 75,000 million in Treasury bills will be issued through an auction scheduled for 17 September. Market participants expect this auction to influence short-term liquidity and bond yield dynamics.
Analysts noted that the mild weakness in the Sri Lanka rupee, combined with steady bond yields, reflects a cautious but balanced outlook. Investors remain focused on upcoming auctions, central bank policy direction, and global dollar strength, all of which could shape near-term currency and bond market trends.