The Sri Lanka rupee opened weaker on Monday, slipping to 307.00/50 against the US dollar as government bond yields held largely steady and the Colombo stock market began the day in negative territory.
Sri Lanka rupee weakens as bond yields steady and stocks move lower
The Sri Lanka rupee showed a slight depreciation at the beginning of the week, opening at 307.00/50 in the spot market. This marks a mild weakening from Friday’s close, reflecting ongoing pressures within the foreign exchange market. Dealers noted that the shift was modest but aligned with cautious sentiment amid limited liquidity and measured trading activity.
Bond yields across several maturities opened mostly stable. The yield on the bond maturing on 15.12.2026 eased slightly to 8.08/18 percent from the previous 8.10/20 percent. The bonds maturing on 01.07.2028 and 15.03.2028 were quoted near the 9.00 percent range. Longer-term securities showed mixed performance, with the 15.12.2029 bond quoted at 9.40/50 percent and the 15.12.2032 issue moving marginally higher to 10.22/32 percent. The 15.06.2035 bond was quoted at 10.65/75 percent, posting a small decline, indicating subdued trading interest.
Telegraphic transfer rates reflected the broader currency trend. The US dollar was quoted at 303.2500 for buying and 310.2500 for selling, while the British pound and euro also recorded wide spreads. These movements suggested continued caution among importers and businesses managing foreign payments, reinforcing the pressure on the Sri Lanka rupee within commercial banking channels.
Equity markets opened on a weaker note. The All Share Price Index slipped by 0.44 percent to 23,357, while the S&P SL20 declined by 0.35 percent to 6,413. Market analysts noted that investor sentiment remained mixed, influenced by currency uncertainty and limited corporate catalysts. Activity remained muted as traders awaited further economic signals that could influence both bond yields and the Sri Lanka rupee in the coming sessions.
Overall, the market outlook for the Sri Lanka rupee will depend on upcoming fiscal flows, foreign currency availability, and potential monetary policy adjustments. For now, the financial markets appear to be balancing cautious optimism with an awareness that minor fluctuations in currency and yields may continue through the week.