The Sri Lankan rupee opened the trading day on a steady note, quoted at 299.50/70 against the US dollar, showing little movement from Wednesday’s close of 299.60/65, dealers reported. The relative stability in the currency comes in the wake of the Central Bank of Sri Lanka’s latest monetary policy announcement, which also had a clear impact on the bond market.
Following the announcement, government bond yields saw a decline, signaling improved investor sentiment and expectations of a more stable macroeconomic environment.
A bond maturing on 15th October 2028 was quoted at 9.75/85 percent, slightly down from its previous level of 9.75/86 percent.
The 15th June 2029 bond eased to 10.07/12 percent, compared to 10.14/20 percent on the prior day.
The 15th December 2029 bond yield dropped to 10.12/17 percent, down from 10.18/24 percent.
Meanwhile, the longer-term bond maturing on 15th March 2031 saw its yield decline to 10.55/60 percent, from 10.69/73 percent.
Market analysts noted that the easing yields reflect a positive response from investors to the central bank’s stance, potentially indicating confidence in economic stabilization and inflation control measures.