News & market updates

Sri Lanka's rupee was quoted at 335.75/80 to the US dollar in the spot market while bond yields were broadly steady (e.g. a 15.12.2029 bond at ~10.95-11.05%). Rs 140,000 million of Treasury bills are to be issued via auction on Aug 5.

The Central Bank of Sri Lanka published its Market Operations Report on 31 July 2026, saying it tightened monetary policy in H1 2026 and short-term interest rates rose. It reported surplus liquidity from net FX purchases and some rupee depreciation pressures, with FX intervention to curb volatility.

Sri Lanka's central bank said the rupee depreciated 7.9% against the US dollar in H1 2026 (from 309.99 to 336.66 USD/LKR) and that it intervened in FX markets, recording net FX purchases of $556m for the half. The central bank also raised the OPR by 100bp to 8.75% on May 26.

Sri Lanka's rupee was quoted at 335.60/70 to the US dollar on Monday, while government bond yields moved lower (e.g. the 01.08.2030 bond at 11.25-11.30%). Telegraphic transfer dollar rates were 331.25/340.25 and Rs 140,000 million of Treasury bills will be auctioned on Aug 5.

The Central Bank of Sri Lanka was a net purchaser of $556.3m in 1H 2026 (bought $982.2m, sold $425.9m) and injected about Rs.262.5bn into the domestic money market via FX purchases and swaps to rebuild reserves and curb exchange-rate volatility.

Sri Lanka's current account swung to a $245m deficit in 1H 2026 from a $1.4bn surplus a year earlier as the merchandise trade deficit widened 67% to $5.49bn (exports $6.9bn, imports $12.4bn). Higher fuel imports (1H fuel bill $3.17bn, +58.8% YoY), a weaker services surplus and Middle East-related import pressures drove the deterioration; gross official reserves were $6.5bn and the rupee was 7.8% weaker YTD.

The Rs. 250 billion Treasury Bond auction was fully taken up, sparking a secondary-market rally that drove yields lower across the curve. Short-term T-Bill yields fell for a third week (91-day to 9.86%), foreign holdings rose by Rs.6.44bn to Rs.188.82bn and the rupee strengthened to Rs.335.65/335.80.

The Central Bank reported a monthly current account deficit of US$149 million in June 2026 (third consecutive month) and a cumulative H1 deficit of US$245 million. The deterioration was driven by a wider merchandise trade deficit (US$5.5bn H1), a 40.2% rise in fuel import costs y/y, a 9.9% drop in tourist arrivals in June, and a 7.8% YTD depreciation of the rupee.

CHEC Port City Colombo is pitching its 2.7 sq km SEZ to attract Indian investors, allowing Indian firms to register as offshore companies and transact in Indian rupees; the plan includes four dedicated hospitality plots, a two-km beach and a 90-hectare lagoon.

Sri Lanka's rupee strengthened to 335.65/80 per US dollar in the spot market from 336.00/10 the previous day, dealers said. Government bond yields edged lower, with the 15.10.2030 bond around 11.55-11.60% and the 01.07.2037 bond about 12.75-12.80%.

Treasury Bond auctions raised the full Rs.250 billion offered in the first phase, with weighted average yields of 11.90% (01.02.2031), 12.42% (15.10.2034), 12.91% (15.08.2036) and 13.01% (01.07.2037). The secondary bond market rallied after the auction, pushing yields below prior levels, while the rupee gained marginally to around Rs.336 on spot contracts.

Sri Lanka's rupee closed at 336.00/10 to the US dollar on Thursday, slightly firmer from 336.10/20, while government bond yields mostly edged down (e.g. 2028 paper 10.65/70% from 10.73/80%, 2030 11.55/65% from 11.70/80%).

Deputy Minister Anil Jayantha Fernando said S&P's favourable assessment reflects policy consistency, stronger fiscal management and improved debt management but warned structural vulnerabilities remain, notably a Rs.2,500 billion interest bill that limits development spending, energy dependence and exposure to external shocks. He added government revenue had reached 63.5% of the annual target by July and foreign exchange reserves and the T&C assessment have improved.

Sri Lanka's rupee was quoted at 335.95/336.05 to the US dollar on Thursday, slightly firmer than 336.10/336.20 on Tuesday; government bond yields were broadly steady, with the 15.12.2028 bond at about 10.70/85% and 2029-2030 maturities quoted around 11.10%-11.75%.

Sri Lanka's rupee closed at 336.10/20 to the US dollar on Tuesday, versus 336.20/35 the previous day. Government bond yields edged mostly up on select tenors: 2028 and 2030 rose slightly, 2033 fell, while several issues were flat.

S&P affirmed Sri Lanka's sovereign ratings at 'CCC+/C' with a stable outlook on July 27, 2026, and upgraded the transfer and convertibility assessment to 'B-'; it flagged a heavy interest-to-revenue burden (~45.6%). The agency noted resilient GDP growth but vulnerabilities from high debt, external shocks (Middle East war, Cyclone Ditwah) and a 100bp policy-rate hike to anchor inflation.

S&P Global affirmed Sri Lanka's long- and short-term sovereign ratings at 'CCC+/C' with a stable outlook and revised the transfer and convertibility assessment to 'B-'. The agency warned higher energy costs and Middle East risks could pressure growth and external balances, and forecasts 3.8% GDP growth in 2026.

Sri Lanka's rupee was quoted at 336.15/25 to the US dollar on Tuesday, slightly stronger than 336.20/35 the previous day, while local government bond yields were broadly steady with small moves across maturities. An auction of Rs.140,000 million T-bills is ongoing; TT USD rates were 331.75/340.75.

Sri Lanka's rupee closed flat at 336.20/35 to the US dollar and government bond yields were broadly steady, with most listed maturities little changed (e.g. 15.09.2027 at 10.30/40%, 15.12.2029 at 11.25/30%).

Secondary government bond yields edged higher on selected longer maturities while Treasury bill yields fell; the 91-day yield declined 18 bps to 9.95%. Foreign holdings of rupee government securities rose by Rs.5.83bn to Rs.182.39bn and system liquidity remained in surplus at Rs.163.07bn.

Sri Lanka's rupee was quoted at 336.25/45 to the US dollar on Monday, little changed from Friday; bond yields were broadly steady, with 2028–2030 maturities trading around 10.75%–11.65%.

Sri Lanka's rupee closed at 336.20/35 to the US dollar on Friday and government bond yields edged up, with 2030–2037 maturities rising modestly to around 11.58%–12.75%.

Sri Lanka's rupee was flat at 336.20/30 to the US dollar while government bond yields edged slightly higher; key quotes: 15.12.2029 at 11.20/30, 01.08.2030 at 11.60/63, 15.10.2030 at 11.62/68 and 15.12.2032 at 12.05/10 percent.

Secondary bond market yields remained broadly steady, with maturities trading between about 10.05% (15.12.26) and 11.53%-11.55% (01.07.30). The money market had a net liquidity surplus of Rs.136.54bn (Rs.129.04bn at SDFR 8.25%), and USD/LKR closed at Rs.336.15/336.25 on $104.35m volume.

Sri Lanka's rupee closed at 336.20/30 to the US dollar (from 336.35/40), while government bond yields were broadly steady, with nearby maturities trading roughly between 10.30% and 12.15%.

Sri Lanka rupee quoted at 336.30/40 to the US dollar in the spot market; bond yields were broadly steady, with quoted maturities around roughly 11.20% (2029) up to about 12.75% (2037).

CBSL held the policy rate at 8.75% after its Monetary Board review, citing Middle East-driven commodity price shocks; headline inflation rose to 6.8% YoY in June 2026. The bank said inflation will remain above the 5% target in the near term, stands ready to act, and noted reserves of $6.45bn with some rupee stabilisation.

91-day Treasury bill yield fell 18bp to 9.95% at the weekly auction as the full Rs.140 billion offered was raised. Money market liquidity rose to Rs.175.20bn and USD/LKR closed about 336.25/336.35.

Sri Lanka's gross official reserves fell to $6.4bn from $6.8bn, with the central bank saying higher import outflows—driven by petrol and vehicle imports—caused the decline rather than FX intervention. The bank expects reserves to recover with incoming IMF, ADB and World Bank disbursements.

Sri Lanka's rupee closed at 336.35/40 to the US dollar in the spot market, while bond yields were broadly steady — e.g. the 15.09.2027 bond at 10.30/40%, 15.10.2028 at 10.70/80% and the 15.12.2029 bond at 11.20/30%.