The Sri Lanka rupee strengthened in the spot market to 304.15/20 against the US dollar on Monday, while government bond yields declined across several maturities, reflecting improved investor sentiment and stable market conditions.
Rupee firms to 304.15/20 vs USD as government bond yields fall across maturities
The Sri Lanka rupee ended stronger in Monday’s trading, closing at 304.15/20 to the US dollar compared to 304.80/90 in the previous session. Dealers said the appreciation was supported by steady inflows and a calmer foreign exchange environment. Meanwhile, government bond yields eased as investor confidence improved in line with lower inflation expectations and moderate liquidity conditions.
A bond maturing on 15 December 2026 remained steady at 8.05 to 8.10 percent. The 15 June 2029 bond was quoted at 9.30 to 9.35 percent, while the 15 September 2029 maturity eased slightly to 9.35 to 9.40 percent from 9.40 to 9.45 percent. The 15 December 2032 bond dropped to 10.25 to 10.32 percent from 10.35 to 10.40 percent. The 15 March 2031 bond closed at 10.75 to 10.85 percent, and the 1 November 2033 issue ended lower at 10.42 to 10.48 percent.
Market participants noted that the decline in bond yields coincided with a stronger Sri Lanka rupee, which may signal renewed stability in the domestic financial market. Analysts said that consistent currency strength could help reduce near-term refinancing risks and maintain investor confidence ahead of upcoming debt auctions and fiscal updates.