Currency gains and easing yields signal positive investor sentiment
Colombo, May 24 — The Sri Lankan rupee opened stronger in the spot market on Friday, trading at 299.10/25 against the US dollar, an improvement from Thursday’s close of 299.35/45, currency dealers reported. The firmer rupee comes amid a sharp drop in government bond yields, reflecting increased investor confidence.
Bond markets saw notable declines across key maturities. The yield on the bond maturing on October 15, 2028, fell to 9.65/70 percent. The June 15, 2029 bond eased to 9.90/98 percent from the previous 10.07/11 percent. Similarly, the September 15, 2029 bond traded at 9.98/10.02 percent. The long-term bond maturing on March 15, 2031, saw its yield drop to 10.45/52 percent, down from 10.57/63 percent.
Meanwhile, equities posted gains in morning trading. The benchmark All Share Price Index (ASPI) rose by 0.37 percent, or 61.74 points, reaching 16,535.11. The S&P SL20 index also moved higher, gaining 0.31 percent or 15.24 points, to stand at 4,857.75.
The simultaneous appreciation of the rupee, declining bond yields, and a buoyant stock market suggest improving macroeconomic conditions and investor optimism.