The Sri Lankan rupee opened weaker in the spot market on Monday (May 20), trading at 299.30/50 against the US dollar, compared to Friday’s close of 299.10/30, according to dealers. The shift reflects continued market caution amid external and internal fiscal dynamics.
Simultaneously, government bond yields rose across maturities, indicating a tightening environment in the domestic debt market:
| Bond Maturity Date | Yield (%) – Monday | Previous Yield (%) |
|---|---|---|
| 15.02.2028 | 9.64/66 | 9.55/65 |
| 15.10.2028 | 9.75/85 | 9.70/80 |
| 15.12.2029 | 10.15/20 | 10.12/15 |
| 15.03.2031 | 10.67/70 | 10.59/66 |
Despite the weakening rupee and climbing bond yields, equities opened on a positive note, with the All Share Price Index (ASPI) rising 0.52% during early trading, suggesting continued investor optimism in the stock market.
Market analysts attribute the mixed movements to a combination of global uncertainties, shifting rate expectations, and domestic fiscal pressures.