Sri Lanka’s bond yields increased ahead of a 300 billion rupee auction, with dealers noting a rise in yields for bonds maturing in 2028. In the secondary market, bonds maturing on February 15, 2028, were quoted at 13.30/50%, up from 13.15/40% the previous day. Similarly, bonds maturing on July 1, 2028, rose to 13.70/85% from 13.40/55%.
Sri Lanka is offering bonds across multiple maturities, including 100 billion rupees for 2028 bonds and 150 billion rupees for 2029 bonds. Bond yields have been climbing amid concerns over potential changes in fiscal policies ahead of the upcoming election.
The Asian Development Bank (ADB) approved a $100 million budget support loan on September 11, which is expected to provide a boost to the economy. However, bond investors are still cautious, adjusting portfolios due to uncertainty regarding future tax and spending policies.