ECONOMYNEXT- Sri Lanka’s rupee was quoted around 199.95/207 to the one month dollar Wednesday while bond yields are marginally down, dealers said.
Sri Lanka’s banks have been asked not to sell spot dollars above 200 to the US dollar and not to buy dollar above 200 from banks in a non-credible soft-peg from last week, market participants said.
In the spot market so-called ‘pity deals’ have been taking place where larger banks try to help out smaller ones.
Sri Lanka has been printing large volumes of money putting pressure on the rupee and creating record balance of payments deficit.
Rupee closed on Tuesday at 199/208 levels in one-month dollar.
In the secondary market, bond yields on the short end of the curve marginally down, dealers said.
Bonds maturing on 15.12.2022 was quoted at 5.70/80 per cent on Wednesday down from 5.77/85 at Tuesday’s close.
Bonds maturing on 15.11.2023 was quoted at 6.35/40 per cent on Wednesday, down from 6.42/48 per cent on Tuesday.
Bonds maturing on 15.12.2024 was quoted at 6.70/85 per cent on Wednesday, slipping from 6.75/85 per cent on Tuesday.
A bond maturing on 01.05.2025 was quoted at 6.90/7.10 per cent on Wednesday, down from 7.10/35 per cent.
A bond maturing on 01.02.2026 was quoted at 7.30/40 per cent on Wednesday, down from 7.35/45 per cent. (Colombo/May05/2021)