Secondary bond market activity was subdued and yields held broadly steady, with selected tenors trading at 9.20%–10.37% and total secondary Treasury turnover of Rs.4.30bn on 5 Dec 2025. Net liquidity surplus fell to Rs.85.67bn; USD/LKR spot was steady at ~308.63/308.68 (USD/LKR volume $135.75m).
Interest RatesRupee & Forex
EconomyNext·Dec 8, 2025·Regulatory or legalPositive
Sri Lanka Customs expects to exceed its 2025 revenue target by about Rs. 400 billion; collections stood at Rs. 2,312 billion versus a target of Rs. 2,115 billion as of Dec 7. The rise is driven mainly by taxes on vehicle imports, stronger enforcement, and a rebound in imports.
Sri Lanka's rupee closed at 308.63/68 to the US dollar, slightly weaker than Friday's 308.55/65. Local government bond yields were broadly steady: the 15.12.2026 note at 8.30/40%, the 15.12.2029 at 9.60/65% and the 15.12.2032 around 10.34/44%.
Foreign investors bought about USD 9.58 million of Sri Lanka government securities in the week ending Dec 3, the second straight week of net foreign buying and taking holdings near a two‑year high. The inflows have continued despite a gradual fall in the rupee amid strong imports and central bank dollar purchases.
IMF has postponed Sri Lanka's EFF Fifth Review to early 2026 to prioritise the government's $200m emergency financing request, delaying a previously expected ~ $347m tranche. The IMF said Rapid Financing Instrument support would be considered first and provided in addition to the EFF.
Official reserves fell 3% to $6.03 billion at end-November 2025, the lowest for 2025; foreign currency reserves dropped to $5.94bn, gold reserves rose to $85m and IMF SDRs fell to $2m. CBSL estimates foreign currency payments of $2.05bn over the next 12 months.
Sri Lanka's rupee opened flat at 308.50/65 to the USD while government bond yields were slightly higher — 2028 notes ~9.15–9.30%, 2029 ~9.60–9.68%, 2031–2033 ~10.02–10.66% — and the ASPI rose 1.20% to 21,754.
Interest RatesRupee & Forex
EconomyNext·Dec 8, 2025·Regulatory or legalNegative
Sri Lanka's lending and deposit interest rates edged up in October as strong loan demand led banks to raise deposits despite a May policy rate cut. The piece notes central bank liquidity operations, rupee depreciation risks, Cyclone Ditwah-related 500 billion rupee spending and expected IMF/World Bank support.
Secondary bond market activity was subdued after Cyclone Ditwah, with short-to-belly yields rising and the yield curve flattening (e.g. 01.08.26 traded at 8.45%). Foreign holdings of rupee government securities rose by Rs.2.92bn to Rs.142.45bn, T-bill rates held steady and USD/LKR closed around 308.55/308.65.
Sri Lanka is seeking an 18th IMF program with an IMF team due in January and the Fund expected to provide about $200m via a Rapid Financing Instrument. President Dissanayake said next year's budget will include Rs500 billion of extra cyclone spending, requiring adjustments to fiscal targets.
The IMF will prioritise Sri Lanka's request for a USD 200m Rapid Financing Instrument and will resume discussions on the Fifth Review of its EFF in January; completion of the Fifth Review would release about USD 358m to Sri Lanka.
Interest RatesRupee & Forex
EconomyNext·Dec 7, 2025·Regulatory or legalNegative
Parliament’s Committee on Public Finance warned Sri Lanka’s central bank that its domestic FX swaps are a “hot money operation” and are not deducted when calculating Net International Reserves. The central bank reported gross reserves of $6.2bn and NIR of $3.4bn, citing PBoC, RBI and IMF liabilities.
Sri Lanka's foreign exchange reserves fell to $6,083m at end-November 2025, down $256m year-on-year and $133m month-on-month. The decline coincided with rate cuts, open-market operations and buy-sell swaps and a rupee depreciation to 308.02/USD by end-November, with IMF/ADB financing ongoing.
Parliament approved the third reading of Budget 2026 with 158 MPs in favour, one against and two abstaining, concluding the legislature's budget proceedings; Parliament will reconvene on 6 January 2026.
Sri Lanka has requested SDR 150.5 million (about $200 million) from the IMF under the Rapid Financing Instrument for emergency assistance after Cyclone Ditwah, a request now under consideration by the IMF Executive Board. The IMF said it remains engaged to support recovery and rebuilding.
The IMF is considering Sri Lanka's request for SDR 150.5 million (about US$200m) under the Rapid Financing Instrument to support recovery after Cyclone Ditwah. The request is under consideration and subject to approval by the IMF Executive Board.
Sri Lanka has requested about US$200m (SDR 150.5m) from the IMF under the Rapid Financing Instrument to support recovery and rebuilding after Cyclone Ditwah; the request is under consideration by the IMF Executive Board. The country faces a $216m IMF repayment in 2026 and has seen rapid rupee depreciation and weaker reserve accumulation.
Sri Lanka has asked the IMF for extra funds and $200m in immediate relief after Cyclone Ditwah, and says the IMF review is likely delayed to January or February 2026. The country faces a $216m IMF repayment in 2026 and has seen rapid rupee depreciation and weaker reserves.
Sri Lanka's rupee strengthened slightly to 308.55/65 per US dollar on Friday, while government bond yields were broadly steady. Selected yields: 15.12.2026 at 8.30/40%, 15.09.2027 at 9.00/9.05%, and 15.12.2029 at 9.60/70%.
Secondary Treasury bond trading remained active with total secondary market Treasury Bond/Bill transacted volume of Rs.6.60 billion on 2 December. Yields were broadly steady with marginal moves in select tenors; net liquidity surplus was Rs.102.75bn, SDFR deposits Rs.106.92bn, overnight call/Repo 7.94%/7.96%, USD/LKR 308.75/308.80.
Sri Lanka’s rupee closed at 308.75/80 to the US dollar on Wednesday, marginally stronger than Tuesday. Local government bond yields were mixed, with some tenors easing (e.g. 15.12.2026 at 8.25/40, 15.12.2029 at 9.60/65) while others edged up (e.g. 01.11.2033 at 10.60/65).
Weighted-average T-Bill auction yields held broadly steady for a 20th week — 91/182/364-day at 7.51%, 7.91% and 8.03% — while the auction was undersubscribed (33.01%, Rs 15.843bn of Rs 48bn). Secondary bond yields rose and the rupee weakened to 308.80/308.90 USD/LKR.
Sri Lanka's rupee weakened to 308.85/309.00 to the US dollar (from 308.80/308.90) while short-term government bond yields recovered and longer-tenor yields remained largely steady.
Sri Lanka's rupee weakened to 308.80/90 per US$ while government bond yields rose across the curve (e.g. 15.12.2026 quoted at 8.25/35% from 8.20/30% and 15.12.2029 at 9.65/70% from 9.53/65%).
Sri Lanka Customs collected 245 billion rupees in November, 16.7% above the monthly target, lifting first-11-month revenue to 2,260 billion rupees and taking total to about 107% of the full-year target amid stronger enforcement, higher imports and currency movements.
Sri Lanka's rupee weakened to 308.75/80 per USD on Tuesday and government bond yields edged up (e.g. 15.12.2026 bond quoted at 8.25–8.35%). The ASPI fell 1.77% to 22,412 and the S&P SL20 was down 1.65% to 6,186.
Secondary bond market opened dull with short-end yields edging up (15.02.28 & 15.03.28 at 9.20%; 15.03.31 at 10.00%) and Rs.2.95bn in Treasury trades. Net liquidity surplus fell to Rs.86.32bn (SDFR deposits Rs.102.85bn) and USD/LKR depreciated to 308.55/308.65.
Sri Lanka's year-on-year inflation was 2.1% in October 2025, unchanged from September; the Colombo CPI rose 2.16% over 38 months since Sept 2022, and food prices fell 0.6% in October (3.31% deflation since Sept 2022).
Rupee closed at 308.55/65 per USD, weaker from 308.00/20, while short-end government bond yields edged up (e.g., 15.12.2026: 8.20/30%; 15.09.2027: 8.80/90%; 15.03.2028: 9.15/25%).
John Keells Holdings delivered a broadly in-line Q2 FY26 with retail (BYD: 3,705 vehicles), consumer foods and financial services—led by Nations Trust Bank—driving growth; City of Dreams Sri Lanka became fully operational in Aug 2025 and was close to EBITDA breakeven.