The Sri Lankan rupee opened slightly stronger in the spot market on Monday, trading at 299.30/40 against the US dollar, compared to Friday’s close of 299.40/45, dealers reported. The modest appreciation reflects a continuing trend of stability in the currency market as investor sentiment improves.
Alongside the stronger rupee, government bond yields recorded a slight decline across multiple maturities. Market analysts attribute the easing yields to growing confidence in Sri Lanka’s economic outlook and expectations of stable monetary conditions.
According to early trading data, the bond maturing on 15 December 2026 was quoted at 8.40/8.50 percent, while the 1 May 2027 bond was at 8.80/8.90 percent. The bond maturing on 15 September 2027 traded at 9.00/9.10 percent, and the 15 February 2028 bond at 9.40/9.50 percent. Meanwhile, longer-term bonds showed similar trends, with the 15 December 2029 bond quoted at 10.00/10.05 percent, and the 15 March 2031 bond at 10.40/10.50 percent.
The combination of currency strength and easing yields suggests improving market confidence and a favorable response to recent fiscal and monetary policy measures.