The Sri Lanka rupee opened flat on Tuesday at 302.42/48 to the US dollar, while government bond yields remained broadly steady as markets stayed quiet ahead of a large Treasury bill auction.
Sri Lanka rupee at 302.42/48 as bond yields hold steady ahead of Rs 33.5bn T-bill auction
The Sri Lanka rupee opened flat on Tuesday, trading at 302.42/48 to the US dollar, marginally unchanged from Friday’s 302.45/55 close. Dealers described trading as quiet in early trade, and government bond yields were broadly steady after the market opened. The stability in the currency came as investors awaited a scheduled auction of Rs 33,500 million in Treasury bills on Wednesday.
Primary market quotes showed a bond maturing on 15 September 2027 at 8.80/90 percent, while the 15 February 2028 paper was quoted at 9.00/10 percent, edging down from 9.05/10 percent reported previously. Longer-dated issues were priced with the 15 September 2029 bond at 9.65/72 percent and the 1 July 2030 bond at 9.75/85 percent.
Telegraphic transfer rates for major currencies were reported as follows: the American dollar at 299.00 buying and 306.00 selling, the British pound at 401.9790 buying and 413.3408 selling, and the euro at 347.6428 buying and 359.0060 selling. These rates underpinned calm foreign exchange activity on the day.
Equity markets opened in positive territory. The Colombo Stock Exchange’s All Share Price Index (ASPI) rose 0.49 percent, gaining 109.32 points to reach 22,204, while the S&P SL20 index added 0.25 percent, or 15.31 points, to trade at 6,202. Market participants noted selective buying across sectors as investors monitored macroeconomic data and short-term liquidity flows ahead of the T-bill auction.
Analysts said the near-term outlook will depend on demand at Wednesday’s auction and any fresh flows into local currency assets. If the T-bill sale attracts robust bids, it could ease immediate liquidity pressures and support yields; weak demand, by contrast, could prompt renewed volatility in short-term rates. For now, dealers described the market mood as cautious but steady.
For corporates, importers and remitters, the prevailing exchange and T-T rates suggest a broadly predictable cost of foreign currency transactions in the short term. Market participants will continue to track domestic liquidity, central bank signals and global risk sentiment for cues on the next directional move in the Sri Lanka rupee.