ECONOMYNEXT – There was no spot quote for the Sri Lanka rupee. The one-week forward was 321.60/90, dealers said, while bond yields were down.
The rupee was 321.00/30 to the US dollar in the spot next market on Wednesday, significantly weaker from 319.90/320.40 in the spot market the previous day.
Last week the central bank started repo operations mopping up some of the excess liquidity it had built up from buy-sell swaps and dollar purchases.
To debase the rupee the agency allowed excess liquidity of almost 400 billion to remain in the system, almost twice the level before the economic crisis.
In the current cycle, the rupee was systematically weakened from from 297.50 levels to 310 with money printed through buy-sell swaps and aggressive purchasing of dollars to signal exporters to sell at increasingly depreciated prices throughout 2025, as private credit recovered, (explicit exchange rate policy) while spreading a narrative that the rupee was ‘market determined’, critics have pointed out.
In 2026 the rupee depreciated from 310 to 320 to the US dollar despite a Ditwah credit slowdown ruthlessly over purchasing dollars in February to prevent an appreciation and restoration of confidence in the currency.
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Meanwhile, in the secondary market, a bond maturing on 01.07.2028 was quoted at 9.65/70 percent, down from 9.70/75 percent.
A bond maturing on 15.10.2029 was quoted at 9.90/10.00 percent, down from 10.05/15 percent.
A bond maturing on 01.07.2030 was quoted at 10.10/15 percent, down from 10.18/23 percent.
A bond maturing on 01.06.2033 was quoted at 10.95/11.05 percent, down from 11.00/10 percent.
A bond maturing on 15.06.2034 was quoted at 11.18/22 percent, down from 11.25/35 percent.
A bond maturing on 15.06.2035 was quoted flat at 11.25/35 percent.
The telegraphic transfer rates for the American dollar were 317.5000 buying, 324.5000 selling; the British pound was 430.8966 buying, and 442.3418 selling, and the euro was 370.9293 buying, 382.4691 selling.
On the Colombo Stock Exchange, meanwhile, the All Share Price Index was up 0.75 percent, or 169.56 points, at 22,909; while the S&P SL20 was up 0.74 percent, or 46.24 points, at 6,291. (Colombo/May7/2026)