News & market updates

Sri Lanka's rupee was quoted at 335.70/336.00 to the US dollar in the spot market on Monday, while local bond yields were broadly steady (e.g. the 15.12.2029 bond at 11.00/15%). The Colombo Stock Exchange opened lower with the ASPI down 0.19% at 21,724.13.

Private sector credit rose Rs.238.1bn M-o-M to Rs.11.04tn in May (2.2% M-o-M, 27.8% YoY). The CBSL raised the OPR by 100bps to 8.75% in late May to curb credit-driven import demand amid sharp rupee depreciation.

Workers' remittances rose 9.3% YoY to $695m in June, lifting January–June inflows 23.2% YoY to over $4.6bn — the strongest first half on record, bolstering Sri Lanka's foreign-exchange position amid weak exports and tourism.

Sri Lanka's official reserves fell 6.9% (US$431m) to US$6.45bn in June. CBSL estimates short-term FX outflows of US$2.15bn and short positions of US$4.04bn; IMF cut the end-2026 NIR target to US$778m and CBSL is expected to buy dollars, implying continued rupee depreciation pressure.

Foreign portfolio inflows into rupee-denominated government securities totalled Rs 32.04 billion for the week ending 9 July—the largest weekly inflow since Feb 2013—raising foreign holdings to Rs 168.90 billion. Secondary bond yields re-priced higher mid-week amid rising oil prices and geopolitical risk, T-Bill auction yields broadly steady, and the rupee weakened to ~Rs 335.8; a Rs 150 billion Treasury Bond auction across three maturities is scheduled on 15 July.

Foreign holdings in Sri Lanka rupee bonds rose by a net US$97.1m in the week to July 9, lifting foreign holdings to Rs168,895m — the highest since Aug 10, 2023. The inflow coincided with the rupee recovering to about 330/USD and a 100bp May policy rate hike by the Central Bank.

Sri Lanka's foreign reserves fell 6.2% to US$6,450m at end-June 2026. The central bank net-bought US$70.5m in June and US$556.4m in H1 2026, but the decline could pressure IMF reserve targets and future disbursements.

Sri Lanka's rupee closed at 335.70/90 to the US dollar, slightly stronger than 336.00/60 the prior day, while government bond yields were largely flat. Yields across quoted maturities ranged around 10.30–11.80% with little change on the day.

Sri Lanka's rupee was quoted at 335.75/90 to the US dollar in the spot market, firmer than 336.00/30 the previous day; dealers said bond yields were slightly higher, with the 15.12.2029 bond around 11.05–11.15% and 2030–2033 maturities quoted near 11.15–11.85%.

Secondary government bond yields rose and the Finance Ministry announced a Rs.150 billion Treasury bond auction across three maturities (Rs.70bn 15 Oct 2030; Rs.50bn 15 Oct 2034; Rs.30bn 1 Jul 2037). Market liquidity increased to Rs.139.01bn and USD/LKR closed at 336.00/336.40.

Rupee closed at 336.00/60 to the US dollar, slightly weaker than 336.00/30 the previous day; government bond yields rose, with the 15.12.2029 note at 11.05/15% and the 15.12.2032 note at 11.65/75%.

The weekly Treasury Bill auction raised the full Rs.100 billion with weighted average yields broadly steady: 91-day 10.21%, 182-day 10.30% and 364-day 10.21%. Secondary bond yields rose and the rupee weakened to ~LKR 335.75/336.20 amid renewed Middle-East tensions and higher oil prices.

Sri Lanka's rupee weakened to 336.65/75 per US dollar (from 336.00/30) and government bond yields rose, with the 01.08.2030 quoted at 11.38/45% (up from 11.30/35%).

Sri Lanka rupee closed at 336.00/30 to the US dollar, weaker than 334.75/85 the previous day, while government bond yields rose across several maturities (e.g. 15.02.2028 at 10.45/55%, 15.12.2029 at 11.00/10%).

Sri Lanka's rupee weakened to 335.50/90 per US dollar from 334.75/85 and government bond yields rose; a Rs 100,000 million Treasury bill auction is scheduled for 8 July.

Sri Lanka's official reserve assets fell 6.3% in June to USD 6,450m, a USD 431m drop from May, the Central Bank said. The decline was driven by a 6.1% fall in foreign-exchange reserves to USD 6,254m and an 11.7% drop in gold reserves to USD 191m.

The Central Bank of Sri Lanka reported that not a single local Hawala or Hundiyal operator has registered under the 2024 licensing framework. Parliament's finance committee questioned the policy's effectiveness as CBSL cut the capital requirement to Rs.15m and said three overseas operators applied.

The Treasury will offer Rs.100 billion in a T-bill auction today (Rs.50bn 91-day; Rs.35bn 182-day; Rs.15bn 364-day). Secondary bond yields were broadly steady with the short end around 10.50–10.65% and 4-year paper near 11.10–11.33%; net liquidity surplus Rs.134.77bn and USD/LKR ~335.

Central Bank Governor Nandalal Weerasinghe backed calls for a multi-agency probe into alleged $1 billion phantom imports and said the Central Bank would participate. He cautioned timing differences and advance payments could account for about 40% of the questioned transactions and urged a comprehensive inquiry before conclusions.

Foreign investors bought a net US$3.0mn of Sri Lanka government securities in the week ended July 2 as the rupee recovered to about 330 per USD; YTD net outflows remain around US$13.7mn amid recent currency volatility and rising inflation following fuel price moves and a May rate hike.

Sri Lanka's rupee closed at 334.75/85 to the US dollar, slightly firmer than the previous day, while government bond yields were broadly steady; Rs 100,000 million of Treasury bills are to be auctioned on 8 July.

Secondary bond market started the week slow with dull activity and yields broadly steady; key maturities traded around 11.25%–11.75%. Money-market liquidity surplus rose to Rs.132.29bn and USD/LKR appreciated to Rs.334.90/335.

Sri Lanka's rupee was quoted at 334.65/75 to the US dollar in the spot market on Tuesday, slightly firmer from 334.90/335.00 the previous day; domestic government bond yields edged up. For example, the 01.08.2030 bond was quoted at 11.26/33% and the 15.10.2030 at 11.30/35%.

Frontier Research said easing Eurozone inflation and lower oil prices could narrow Sri Lanka's fuel import bill, ease inflationary pressures and reduce depreciation pressure on the rupee. It notes Eurozone headline inflation fell to 2.8% in June and markets expect the ECB to keep rates on hold, though risks from the Middle East and food prices remain.

Sri Lanka's rupee closed at 334.90/335.00 to the US dollar (from 335.20/35), while government bond yields were broadly steady—shorter 2027 paper ~10.35–10.45% and longer-dated bonds around 11.2–11.6%.

The US dollar selling rate fell below Rs.340 today (July 6), the first time since June 23. The Central Bank reported a buying rate of Rs.330.39 and selling rate of Rs.339.88, and said the rupee was down 7.7% year-to-date as of July 3, 2026.

The Central Bank of Sri Lanka net purchased USD 70.8 million from the domestic FX market in June 2026 (purchased USD 96.3m, sold USD 25.8m), after a net sale of USD 211.3m in May 2026.

The CBSL returned to net FX purchases in June, buying a net $70.5m and lifting cumulative net purchases to $556.4m in 1H2026 (vs $2.0bn in 2025). Gross official reserves were provisionally estimated at $6,881m at end‑May, including proceeds from the PBOC swap.

Sri Lanka's rupee was quoted at 335.00/40 to the US dollar on Monday (from 335.20/35), while government bond yields were broadly steady with key maturities quoted around 10.95%–11.65%.

Foreign portfolio buying in Sri Lankan rupee bonds pushed yields lower on 4- and 10-year benchmarks (e.g., 15.10.30 fell to c.11.23%, 15.03.35 to c.11.70%) even as weekly T‑bill yields rose (91-day 10.23%). Money market liquidity doubled to Rs.128.47bn, foreign holdings rose to Rs.136.86bn and USD/LKR closed near 335.20/335.30.