The Sri Lanka rupee opened softer on Thursday at 302.52/55 to the US dollar, from 302.47/53 a day earlier, as local government bond yields inched higher and the Colombo market traded with modest gains.
Sri Lanka rupee opens weaker at 302.52/55 as bond yields tick higher and equities show modest gains
Dealers said market activity on Thursday reflected a cautious tone as the Sri Lanka rupee weakened marginally against the US dollar and demand dynamics in the secondary bond market shifted. A government bond maturing on 15 December 2026 was quoted at 8.35/40 percent, slightly up from 8.30/40 percent, while the December 2032 paper traded at 10.48/58 percent, nudging down from previous levels. Other maturities moved within a narrow range: the 15 September 2027 bond was quoted around 8.80/90 percent, the 15 March 2028 yield was near 9.07/12 percent, the 15 December 2029 bond at about 9.60/65 percent and the 1 July 2030 issue at roughly 9.75/78 percent.
Foreign exchange dealers reported telegraphic transfer (TT) rates for the American dollar at 299.00 buying and 306.00 selling. The British pound was trading with TT rates around 402.15 for buys and 413.51 for sells, while the euro quoted near 348.75 buying and 360.12 selling. These FX levels, dealers said, underpinned the cautious sentiment that carried into the fixed-income market.
Equities showed modest resilience during the same session. The Colombo Stock Exchange traded in the green with the All Share Price Index (ASPI) up about 0.26 percent, adding roughly 56 points to reach 21,907, while the S&P SL20 rose around 0.08 percent to 6,143. Market participants noted that the equity gains were selective, reflecting continued investor focus on yield direction and corporate newsflow.
Analysts said small daily moves in the Sri Lanka rupee and local bond yields are typical in periods when global dollar flows and domestic liquidity conditions are both shaping market direction. Continued monitoring of demand for government paper, central bank communications and larger FX flows will be important for determining whether the modest moves observed become a sustained trend.