Sri Lanka’s rupee opened stronger at 300.45/60 to the US dollar on Friday, compared to Thursday’s close of 300.80/301.05. Despite this strengthening, the bond market continues to experience volatility due to policy uncertainty, affecting investor interest in longer-term securities.
The yields on short-term bills were quoted at 9.75/85 for the 6-month bill and 10.15 percent for the 12-month bill.
Bond yields began to increase following the elections, driven by uncertainty over the continuation of current economic policies. Notable changes include:
- A bond maturing on December 15, 2026, was quoted at 10.95/11.00 percent, unchanged from the previous day’s 10.95/11.10 percent.
- A bond maturing on December 15, 2027, rose to 12.10/20 percent from 11.95/12.10 percent.
- A bond maturing on July 1, 2028, was quoted at 12.50/55 percent, up from 12.45/55 percent.
- A bond maturing on September 15, 2029, increased to 12.60/70 percent from 12.50/75 percent.
No quotes were available for long-term bonds, with a bond auction scheduled for next week.