Sri Lanka bond yields remained steady on Wednesday as the central bank kept policy rates unchanged at 7.75 percent, while the rupee stayed flat and the stock market traded higher.
Rupee flat and stocks in green as central bank maintains rates
Sri Lanka bond yields held steady midweek after the Central Bank of Sri Lanka announced that it would maintain its key policy rate at 7.75 percent. The monetary authority said the decision aims to guide inflation toward the 5 percent target while supporting overall economic growth.
The rupee opened slightly weaker at 302.55/60 against the US dollar, compared to 302.45/60 on the previous day. Dealers noted limited movement in currency markets as demand and supply balanced out.
Government securities showed mixed movements across maturities. A bond maturing on 15 December 2026 was quoted at 8.25/35 percent, down slightly from 8.28/33 percent, while a bond due on 15 September 2027 traded flat at 8.65/75 percent. The 15 December 2028 bond eased to 9.00/9.05 percent from 9.05/15 percent. Meanwhile, a bond maturing on 1 July 2030 rose to 9.70/75 percent from 9.68/75 percent, and the 15 December 2032 bond edged up to 10.40/50 percent from 10.42/48 percent.
At the same time, an auction of Rs. 38 billion in Treasury bills was underway, reflecting ongoing government financing needs. On the currency front, telegraphic transfer rates stood at Rs. 299.00 buying and Rs. 306.00 selling for the US dollar. The British pound was quoted at Rs. 403.09 buying and Rs. 414.46 selling, while the euro stood at Rs. 350.65 buying and Rs. 362.02 selling.
Equity markets showed positive sentiment, with the Colombo Stock Exchange in green. The All Share Price Index (ASPI) gained 0.36 percent, or 77.61 points, closing at 21,360. The S&P SL20 index rose 0.38 percent, or 22.99 points, reaching 6,096.
The steady performance of Sri Lanka bond yields alongside unchanged policy rates signals market stability as the country works to balance inflation control with growth objectives.