The Sri Lanka rupee slipped against the US dollar on Thursday as government bond yields eased by about 3–4 basis points, while the Colombo Stock Exchange opened higher, reflecting mixed signals across currency, fixed-income and equity markets.
Markets: Sri Lanka rupee edges lower as bond yields fall and the Colombo Stock Exchange opens higher
The Sri Lanka rupee weakened in spot trading on Thursday, quoted around 304.80/305.00 to the US dollar compared with about 304.55/304.80 earlier in the week. Dealers attributed the modest depreciation to ongoing demand for dollars and routine market flows, even as confidence in local debt saw a small improvement.
Government bond yields retreated by roughly 3–4 basis points across several maturities, signaling a slight easing in fixed-income sentiment. A 15 February 2028 issue was quoted at about 8.98/9.02 percent, while a 15 September 2029 bond stood at 9.48/9.52 percent. The 15 December 2029 security was trading near 9.50/9.55 percent, down from earlier quotes of 9.55/9.58 percent, and the 1 July 2030 bond was reported at 9.70/9.73 percent. Longer-dated paper such as the 15 December 2032 bond was priced around 10.43/10.47 percent.
Telegraphic transfer (TT) rates showed the American dollar buying at 301.25 and selling at 308.25. The British pound was traded with buying and selling quotes near 392.38 and 403.74 respectively, while the euro’s TT rates were approximately 344.36 buying and 355.73 selling. These rates reflect the continuing sensitivity of the FX market to external flows and local liquidity conditions.
Equities opened on a positive tone: the All Share Price Index (ASPI) rose 0.65 percent — an increase of 149.93 points — to 23,103.42, and the S&P SL20 gained 0.81 percent, or 50.44 points, reaching 6,299.72. Market participants said the early uptick in the Colombo Stock Exchange was driven by selective buying across blue-chips following the slight easing in bond yields.
Overall, the market snapshot shows the Sri Lanka rupee under mild pressure while bond markets register modest yield compression and equities begin the day higher. Traders will be watching incoming economic data and any shifts in foreign exchange demand that could alter the rupee’s trajectory in the coming sessions.