The Sri Lanka rupee strengthened against the US dollar on Friday, showing a firmer trend in currency markets while government bond yields stayed relatively steady.
Sri Lanka rupee gains against dollar while bond yields show stability
The Sri Lanka rupee opened trading at 301.77/80 against the US dollar on Friday, marking a stronger position compared to Thursday’s rate of 301.85/95. Dealers noted that the currency’s performance reflected steady demand and supply conditions in the foreign exchange market.
Government securities also showed mixed activity. A bond maturing on December 15, 2026 was quoted at 8.25/30 percent, slightly higher than the previous day’s 8.20/30 percent. The bond maturing on September 15, 2027 remained unchanged at 8.65/75 percent, while the December 15, 2028 bond eased to 8.85/95 percent from 9.05/14 percent. Longer-term bonds showed marginal adjustments, with the December 15, 2029 bond quoted at 9.52/55 percent, up from 9.50/55 percent, and the July 1, 2030 bond at 9.70/78 percent, compared to 8.70/76 percent earlier. The October 1, 2032 bond was slightly higher at 10.40/48 percent, from 10.40/47 percent.
In foreign exchange telegraphic transfer rates, the US dollar was quoted at 298.5000 for buying and 305.5000 for selling. The British pound stood at 403.8220 for buying and 415.1638 for selling, while the euro was at 347.8968 buying and 359.1020 selling.
Meanwhile, the Colombo Stock Exchange showed mixed sentiment. The All Share Price Index (ASPI) declined by 0.38 percent, down 79.14 points to close at 20,562. In contrast, the S&P SL20 index gained 0.29 percent, or 17.05 points, to reach 5,869. Analysts noted that investor activity remained cautious despite the stronger Sri Lanka rupee and relatively stable bond yields.
The developments highlight a steady outlook for the Sri Lanka rupee, supported by stable government bond movements and cautious optimism in equity markets.