Sri Lankan currency gains modestly while government securities see downward pressure on yields; stock market opens on a positive note
Sri Lanka’s rupee continued its upward trajectory on Monday, opening stronger at 299.75/299.95 against the US dollar in the spot market, a slight appreciation from Friday’s close of 299.92/299.97, according to currency dealers.
At the same time, the government bond market reflected a mild decline in yields across several maturities, suggesting improving investor sentiment and easing inflationary pressures.
The benchmark bond maturing on 15 December 2026 was quoted at 8.00 to 8.15 percent, down from the previous 8.10 to 8.15 percent. Similarly, the yield on the 15 March 2028 maturity slipped to 8.70 to 8.80 percent.
Longer-term bonds also reflected downward adjustments. The bond maturing on 15 December 2029 eased to 9.37 to 9.42 percent from last week’s 9.42 to 9.45 percent, while the 15 December 2032 bond was quoted at 10.35 to 10.40 percent, slightly lower than its previous range of 10.36 to 10.40 percent.
Meanwhile, the 1 November 2033 bond saw a marginal drop to 10.60 to 10.68 percent from 10.60 to 10.70 percent. The 15 March 2031 bond remained flat at 9.90 to 10.00 percent.
The Colombo Stock Exchange also opened the week on a positive note. The All Share Price Index (ASPI) rose by 0.61 percent or 109.81 points to reach 17,982.55, while the more liquid S&P SL20 index climbed 0.71 percent or 37.71 points to stand at 5,320.77.
The combination of a firmer rupee, easing bond yields, and rising equity indices reflects improving market sentiment, potentially driven by expectations of monetary policy stability and continued foreign inflows.