ECONOMYNEXT – Sri Lanka bond market close quiet on Monday (29) with muted activity while the 30 billion bond auction was fully subscribed.
Sri Lanka’s debt office offered 30 billion in bonds to be sold in an auction held on Monday (29).
The debt office said it sold all the offered amounts in 2025 and 2030 bonds and has opened a post-auction bond to sell more.
15 billion rupees of 15 March 2025 bonds were sold at 9.67 percent after offering 15 billion rupees.
15 billion rupees of 15 May 2030 bonds were sold at 11.63 percent after offering 15 billion rupees
FirstCapital said the market witnessed a complere standstill as particpants opted to stay on the sidelines.
Bonds maturing on 15.03.2024 closed at 9.15/22 percent on Monday, down from 9.17/22 percent on Friday.
A bond maturing on 01.12.2024 closed at 9.30/40, down from 9.38/45 percent on Friday.
The newly auctioned bond maturing on 15.03.2025 closed at 9.70/72 percent.
A bond maturing on 15.01.2026 closed at 10.30/40 percent on Monday.
A bond maturing on 15.01.2027 closed at 10.80/90 percent on Monday.
A bond maturing on 15.05.30 closed at 11.55/65 percent on Monday.
A bond maturing on 15.03.2031 closed at 11.75/85 percent on Monday, down from 11.80/90 percent on Friday.
Sri Lanka’s central bank on Thursday (25) kept rates at the current levels maintaining the Standing Deposit Facility Rate (SDFR) at 5.00 percent and the Standing Lending Facility Rate (SLFR) at 6.00 percent.
Sri Lanka’s official inflation index moved up above 8.0 per cent in October, the highest since 2017, after two years of money printing which began around September 2014.
Prices of the island’s bakery items and street staples were increased over the weekend after a price increase in wheat flour.
The price of a kilogram of wheat flour had gone up by 18.50 rupees.
All Ceylon Bakery Association President N K Jayewardene said this is unprecedented because the prices go up only between five to ten rupees.
He said with the last month’s wheat flour price increase, the flour has gone up by 28 rupees.
A sack of flour is expected to rise by 875 rupees. This has triggered a price increase for Parata, rolls, egg-roti by 5.00 rupees and a street-food favourite ‘Kottu-roti’ price to be increased by 10 rupees while bread price to increase by 10 rupees.
“Parata, rolls, egg-roti will go up by 5.00 rupees, ” Sampath said. “Kottu-roti will go up by 10 rupees.”