Sri Lanka rupee at 335.25/35 to US dollar spot, bond edge up as the local currency strengthened against the US dollar in Friday’s spot market, while government securities recorded modest gains in yields amid profit-taking activity by investors.
Sri Lanka rupee at 335.25/35 to US dollar spot, bond edge up as bond yields rise slightly
The Sri Lankan currency was quoted at 335.25/35 against the US dollar in the spot market, improving from Thursday’s closing level of 335.90/336.00, according to market dealers. The stronger performance reflects continued stability in the Sri Lanka exchange rate, with trading remaining relatively orderly despite cautious market sentiment.
Market participants said the rupee continued to benefit from balanced demand and supply conditions in the foreign exchange market. Dealers noted that the appreciation, although modest, highlights ongoing confidence in the domestic currency as the market closely monitors external developments and liquidity conditions.
Meanwhile, the telegraphic transfer (TT) rates also reflected current market movements. The Sri Lanka rupee was quoted at 331.50 buying and 340.50 selling against the US dollar.
Other major foreign currencies traded at the following rates:
Euro: 376.7044 buying and 390.6214 selling
British Pound: 441.8540 buying and 455.8996 selling
Currency dealers said trading volumes remained stable, with no significant volatility observed during the session.
In the government securities market, Sri Lanka bond yields edged slightly higher across several maturities as investors engaged in profit-taking following recent market gains.
The benchmark government bond maturing on 1 August 2030 was quoted at 11.25/28 percent, compared with 11.18/25 percent recorded during the previous trading session.
Similarly, the bond maturing on 15 October 2030 increased to 11.25/32 percent, up from 11.20/27 percent a day earlier.
Longer-dated securities also recorded modest upward movements. The bond maturing on 15 December 2032 was quoted at 11.55/60 percent, slightly higher than the previous 11.50/60 percent.
The bond maturing on 15 January 2033 was quoted at 11.57/63 percent, while the 1 November 2033 maturity remained unchanged at 11.60/70 percent, indicating relatively stable investor demand for that tenor.
Meanwhile, the government bond maturing on 15 March 2035 was quoted at 11.70/75 percent, reflecting the market’s cautious approach toward longer-term debt.
Dealers attributed the modest increase in yields primarily to profit-taking by investors rather than any significant shift in underlying market fundamentals. They noted that demand for government securities remains broadly stable, although investors continue to monitor domestic liquidity conditions, monetary policy expectations, and global financial market developments.
The foreign exchange and bond markets are expected to remain sensitive to economic data releases, investor positioning, and broader macroeconomic conditions in the coming weeks. Market participants will also continue to watch movements in the Sri Lanka exchange rate alongside trends in Sri Lanka bond yields, as both remain important indicators of investor confidence and overall financial market stability.
Friday’s trading session therefore reflected a combination of a firmer local currency and slightly softer government bond prices, with the increase in yields largely driven by routine profit-taking rather than heightened market concerns. The Sri Lanka rupee at 335.25/35 to US dollar spot, bond edge up trend underscores the relatively stable conditions currently prevailing across Sri Lanka’s financial markets.