The Sri Lanka rupee closed flat at 301.97/302.05 to the US dollar on Tuesday as yields on 2028–2030 government bond tenors inched higher, market dealers said. Government plans to issue Rs. 77,000 million in Treasury bills via an auction on 10 September added to market activity.
Sri Lanka rupee holds at 301.97/302.05 while 2028–2030 yields tick higher ahead of Rs.77,000mn T-bill auction.
Market participants on Tuesday saw a quiet foreign-exchange session while the local debt curve registered modest repricing. The Sri Lanka rupee finished essentially unchanged at 301.97/302.05 to the US dollar, mirroring a lack of fresh FX pressures during intraday trade and dealer inventories that kept the market balanced. Dealers flagged that while the currency remained steady, investor attention shifted toward longer-dated government paper where yields showed upward movement.
On the bond front, benchmark issues maturing in the 2028–2030 range were the main movers. The 15 December 2028 bond closed around 9.05/10 percent, up from prior quotes, while the 1 July 2030 issue was quoted at 9.70/75 percent, reflecting a slight pickup in required returns for longer tenors. Shorter dated securities were relatively stable, with the 15 December 2026 bond holding near 8.20/30 percent and the 15 September 2027 bond near 8.65/75 percent, according to dealers. The incremental rise in mid-to-long yields suggests investors are pricing in refinancing risk and the calendar of future supply.
Policy and liquidity events also shaped sentiment. The Central Bank and Treasury set a Treasury bill auction for 10 September offering a total of Rs. 77,000 million, split across 91-, 182- and 364-day tenors, with settlement and issue scheduled for 12 September. That planned supply is a near-term funding event that likely contributed to the market’s cautious tone and modest upward pressure on longer yields as cash managers and mutual funds positioned for the auction.
For traders and issuers, the immediate takeaway is a market that remains watchful rather than volatile: the Sri Lanka rupee has shown resilience against the dollar in the session reported, but government debt markets are recalibrating yield expectations on longer maturities amid upcoming primary supply and broader macroeconomic considerations. Analysts say such moves are normal in a market where funding calendars and rollover profiles matter for pricing across the curve.