Sri Lankan finance companies have substantially increased investments in government securities, repurchase agreements (repos), and unit trusts in the first half of 2024, as reported by the Central Bank. This shift comes as vehicle imports remain banned following the foreign exchange shortage that stemmed from inflationary rate cuts in 2020. The Central Bank’s report notes
Sri Lanka’s rupee opened weaker on Monday, trading at 292.60/70 to the US dollar, compared to 292.50/65 on Friday, according to dealers. Bond yields showed a mixed trend, with some yields decreasing while others remained stable. The yield on a bond maturing on December 15, 2026, was quoted at 10.45/55 percent, slightly up from 10.40/55
Private sector credit demand showed signs of slowing in September, falling short of the recent high recorded in August, according to data from the Central Bank. In October, credit to the private sector increased by Rs. 89 billion, reflecting an 8.9% year-on-year growth. This was a decrease compared to the Rs. 135 billion growth seen
Sri Lanka’s rupee opened weaker at 292.68/75 to the US dollar on Friday, reflecting a slight dip from 292.55/65 on Thursday. Meanwhile, bond yields showed a significant decrease across the board, with notable drops in the yields for bonds maturing in 2026, 2027, and 2028. For instance, a bond maturing on 15.12.2026 was quoted at
The Central Bank of Sri Lanka has expressed its readiness to support the government should it decide to ease restrictions on motor vehicle imports. This indication comes in light of Sri Lanka’s stable balance of payments and a current account surplus for the second consecutive year, according to Central Bank Governor Nandalal Weerasinghe in an
Minister Vijitha Herath has clarified that the new government has not printed any currency notes or taken loans from foreign institutions. The statement was made in response to a question posed by a journalist at Monday’s (28) Cabinet press conference. Minister Herath explained that while the Central Bank of Sri Lanka regularly issues new treasury
Sri Lanka has not printed new banknotes, as confirmed by cabinet spokesman Vijitha Herath, who highlighted the absence of currency notes bearing the signature of the incumbent finance minister. During the weekly cabinet press briefing on Tuesday, October 29, Herath addressed rumors regarding the central bank’s liquidity injections, clarifying a misunderstanding between liquidity management and
Sri Lanka’s rupee strengthened slightly on Thursday, closing at 292.85/293.00 to the US dollar, improving from the previous day’s rate of 293.00/20, according to dealers. Bond yields remained steady ahead of the upcoming Treasury Bond auction scheduled for Friday, where the central bank plans to issue 95 billion rupees worth of bonds. A bond maturing
Sri Lanka’s rupee appreciated on Tuesday, closing at 293.15/20 against the US dollar, up from the previous day’s rate of 293.45/55, according to market dealers. This marks a continued strengthening trend for the local currency. Meanwhile, bond yields showed a slight increase ahead of significant Treasury bill and bond auctions scheduled for this week. A
The International Monetary Fund (IMF) has stirred political discussions around dedollarization in Sri Lanka through a report on liquidity operations and monetary policy. Despite no public demand to undermine foreign currency deposits, the IMF has recommended introducing statutory reserve requirements (SRR) for foreign exchange liabilities as part of a broader agenda to promote Sri Lanka’s