The Sri Lanka rupee continued its downward trend, weakening against the US dollar to 308.85/309.00 in the spot market on Wednesday. Meanwhile, bond yields showed signs of recovery on shorter tenors, while longer-term bonds remained relatively stable. Investors are closely monitoring these movements amid ongoing economic pressures.
Rupee slips to 309 vs USD as bond yields stabilize in short-term tenors
Sri Lanka’s rupee depreciation persisted on Wednesday, as dealers reported a slightly weaker quotation of 308.85/309.00 versus the US dollar, down from 308.80/90 on Tuesday. This trend reflects ongoing foreign exchange pressures, highlighting concerns over the country’s macroeconomic stability.
In the bond market, shorter tenor yields recovered, offering some respite to investors, whereas longer-term bonds remained steady. Notably, a bond maturing on 15.03.2028 was quoted at 9.18/20 percent, slightly down from 9.20/25 percent, while the 15.06.2029 bond stood at 9.53/58 percent. Bonds maturing on 01.07.2030 and 15.03.2031 were flat at 9.65/75 percent and 9.95/10.10 percent, respectively. Meanwhile, the 15.12.2032 bond was quoted at 10.35/40 percent, marginally lower than previous rates.
Foreign exchange rates for other major currencies also reflected volatility. The telegraphic transfer rates for the US dollar were 305.25 buying and 312.25 selling, the British pound at 402.64 buying and 413.99 selling, and the euro at 353.01 buying and 364.37 selling. These movements are closely watched by businesses and traders engaged in international transactions.
On the Colombo Stock Exchange, indices posted modest gains. The All Share Price Index (ASPI) rose 0.25 percent, adding 54.56 points to reach 22,296, while the S&P SL20 Index increased 0.06 percent, or 3.98 points, closing at 6,141. Market observers noted that these gains reflected short-term investor confidence amid currency pressures.
Overall, the Sri Lanka rupee depreciation combined with selective bond yield recovery highlights a mixed outlook for financial markets. Traders and investors are advised to monitor both forex and bond trends closely, especially given the ongoing economic and political uncertainties.