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Sri Lanka rupee quoted firmer, gilt yields down

ECONOMYNEXT – Sri Lanka rupee was quoted stronger at 185.05/15 against the US dollar on Wednesday while bond yields marginally eased, dealers said.

The rupee closed at 185.35/40 to the greenback on Tuesday.

In the secondary government securities markets, bond yields fell marginally, dealers said.

The secondary market remained dull over the past few weeks with market participants adopting a wait and watch stance.

A 2-year bond maturing on 15.12.2022 was quoted at 5.55/58 per cent on Wednesday, down from 5.58/65 per cent at Tuesday’s closing.

A bond maturing on 15.01.2023 was quoted at 5.57/60 per cent, falling from 5.63/65 per cent from its last close.

A bond maturing on 15.09.2024 was quoted at 6.05/10 per cent on Wednesday, down from 6.10/17 per cent at previous day’s closing.

A bond maturing on 01.05.2025 was quoted at 6.35/45 per cent on Wednesday, easing from 6.37/47 per cent at the previous day’s closing.

A bond maturing on 01.02.2026 was quoted at 6.58/62 per cent, slightly down from 6.60/67 per cent at its previous close on Tuesday.

A bond maturing on 15.08.2027 was quoted at 6.90/92 per cent, steady from 6.90/98 per cent at previous day’s closing.





A bond maturing on 01.07.2028 was quoted at 7.05/15 per cent on Wednesday, unchanged from the previous closing.

A 10-year bond maturing on 15.05.2030 was quoted at 7.25/35 per cent, stable from 7.25/40 per cent at the previous day’s closing.

While the country’s national inflation grew to 6.1 per cent in August. Sri Lanka’s national inflation rose to 6.1 per cent to 6.2 per cent in August 2020 from a year earlier with consumer prices in the month rising 0.4 per cent, data from the state statistics office showed.

Sri Lanka’s National Consumer Price Index grew to 137.8 points in August from 137.3 points in July with food prices rising 0.5 per cent. Sri Lanka’s food prices have risen 13.2 per cent in the 12 months to August 2020 accelerating from 12.9 per cent in July.
Non-foods grew 1.1 per cent in the 12-months.

The Monetary Board of the central bank had also approved the provision of foreign exchange cover between one to two years for foreign investors in rupee government securities and unspecified other sectors. The cover will apply for new investments between 25 million and 1,000 billion dollars.

In politics, opposition continues to protest the 20th Amendment which was tabled in the parliament on Tuesday. The 20th Amendment to the Constitution which proposes to take away power from Parliament and vest them with the President. Justice Minister Mohamed Ali Sabry tabled the proposal for its First Reading. This allows objections to be raised to the amendment within the next seven days.

(Colombo/ Sep23/2020)

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