Currency Dips, Bond Yields Rise as Investors React to Global Uncertainty
Sri Lanka’s rupee opened weaker on Monday, trading at 300.00/40 against the US dollar in the spot market, compared to Friday’s close of 299.70/300.00. Dealers noted the currency’s slide came amid growing global tensions, which have triggered cautious investor sentiment across emerging markets.
Government bond yields also rose in response. The yield on the bond maturing on 15 December 2026 climbed to 7.95/8.05 percent from 7.95/8.00 percent. The 15 September 2027 bond increased to 8.40/50 percent, up from 8.34/48 percent. Meanwhile, the bond maturing on 15 March 2028 was at 8.80/85 percent. The longer-term 15 December 2029 bond saw yields rise to 9.55/57 percent from 9.44/50 percent, and the 15 December 2032 bond was quoted at 10.30/32 percent, slightly up from 10.30/33 percent.
Amid the global market downturn, the Colombo Stock Exchange also felt the pressure. The All Share Price Index (ASPI) dropped 1.17 percent or 203.31 points to 17,223.77. The S&P SL20 fell 1.47 percent or 76.24 points to 5,115.62. These movements reflect the impact of broader global tensions and uncertainty on local financial markets, with investors adopting a more cautious outlook as external risks remain elevated.