ECONOMYNEXT – Sri Lanka’s rupee closed at 309.50/60 to the US dollar in the spot market on December 31, recovering from 310.00/310.20 a day earlier, dealers said amid heavy moral suasion, while bond yields closed up.
The rupee traded weaker around 310.30 to the US dollar before strengthening.
The has weakened from 293.25/75 to the US dollar last year, amid record current account surpluses and improvement in budget, denying the usual scapegoats macro-economists point to after depreciating currencies.
Sri Lanka rupee is depreciating largely due to exchange rate policy errors contained in the so-called flexible exchange where dollars purchased above deflationary policy, analysts have said.
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Meanwhile bill yields also moved up. The government has announced sweeping relief payments, to be funded with a so-called domestic buffer.
RELATED : Sri Lanka Treasury auction yields rise, 6-month up 32bp
A bond maturing on 15.12.2026 closed at 8.40/80 percent, up from 8.40/70 percent.
A bond maturing on 15.02.2028 closed at 9.05/20 percent, up from 9.00/10 percent.
A bond maturing on 15.10.2029 closed at 9.75/85 percent.
A bond maturing on 15.12.2029 closed at 9.75/90 percent, up from 9.70/80 percent.
A bond maturing on 01.07.2030 was quoted at 9.85/95 percent, up from 9.85/90 percent.
A bond maturing on 01.10.2032 closed at 10.35/60 percent, up from 10.32/40 percent. (Colombo/Dec31/2025)