Sri Lanka rupee stable at close, selling pressure on bonds

ECONOMYNEXT- Sri Lanka’s rupee ended stable at 181.35/45 percent to the US dollar in the spot market on Thursday while bond yields gained following news of Sri Lanka’s fiscal troubles, dealers said.

The rupee closed at 181.35/40 to the greenback on Wednesday.

Overnight liquidity in the money market fell by 11 billion rupees to 15.74 billion rupees and the central bank injected 6.40 billion rupees through a reverse repo auction at 6.96 percent.

In the secondary government securities market, bond yields gained on active trade, especially on the 2024 and 2027 maturities, a dealer said.

Prime Minister Mahinda Rajapaksa on Wednesday had called on parliament to approve a supplementary estimate to bridge a gap in finance, prompting bond holders to sell off, a dealer said.

A bond maturing on 15.12.2021 closed at 8.65/85 percent on Thursday, rising from 8.50/65 percent at Wednesday’s close.

A bond maturing on 01.09.2023 closed at 9.10/20 percent, gaining from 9.00/15 percent.

A bond maturing on 15.09.2024 closed at 9.40/45 percent, rising from 9.30/34 percent.

A bond maturing on 15.10.2027 closed at 9.60/65 percent, up from 9.47/55 percent.

A bond maturing on 15.05.2030 closed at 9.60/80 percent, gaining from 9.50/65 percent.

A bond maturing on 15.09.2034 closed at 9.60/90 percent, rising from 9.50/70 percent. (Colombo/Feb06/2020)