An Echelon Media Company
Wednesday February 1st, 2023

Sri Lanka T-bond yield up; local debt restructuring uncertainty weighs

ECONOMYNEXT – Yields in Sri Lanka’s Treasury bonds rose on Thursday (29) while treasury bills remained unquoted after a weekly bond auction amid speculation over local debt restructuring, dealers said.

The secondary market remained dull with no proper direction on local debt restructuring being published yet, they said

During the initial staff level discussion with the International Monetary Fund, Sri Lanka said there are no plans to restructure debt and the discussions are to restructure foreign debt.

However early in August this year, President Ranil Wickremesinghe said debt advisors are looking at local debt as a re-structuring plan to negotiate with creditors was being developed as part of efforts to make the debt sustainable.

However, the Central Bank has not given any direction about the local debt and has said the government’s position on debt restructuring is as declared in April 2022, where there is no restructuring of rupee debt.

A bond maturing on 01.07.2032 ended at 29.80/30.00 percent on Thursday, up from 29.55/75 percent in the previous close.

Sri Lanka’s central bank’s guidance peg for interbank transactions on Thursday was 362.90 rupees against the US dollar, unchanged.

Data said that commercial banks offered dollars for telegraphic transfers between 369.90 and 370.00 for small transactions.

Banks offered to buy inward remittances at 359.90 -360.00 rupees. (Colombo/Sept29/2022)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka coconut prices ease at auction

ECONOMYNEXT- Sri Lanka’s coconut auction prices fell in the last auction in January 2023, with average prices going down by 4.1 percent at an auction on January 26, data showed.

The average price for 1,000 nuts fell to 80.811.89 from 84,116.85 a week earlier at the weekly auction conducted by Sri Lanka’s Coconut Development Authority.

The highest price was 87,300 rupees for 1,000 nuts down from the previous week’s 90,200 rupees, while the lowest was 72,500 down from 73,000 rupees.

The auction offered 469,564 coconuts and 300,983 nuts were sold. (Colombo/ Feb 01/2023)

Continue Reading

Sri Lanka shares edge up at close

ECONOMYNEXT- Sri Lanka’s shares edged up on Wednesday pushed as investors bought in to beaten down shares following the previous session’s drop, market analyst said.“

At this price level what we are seeing is a lot of confidence from the investors to collect when the prices drop. So, the market is not falling sharply,” a market analyst said.

Market had also seen buying in Expolanka shares on speculation that the parent company of SG Holdings was buying back into the shares.

All Share Price Index (ASPI) edged up by 0.96 percent or 84.96 points to 8,950.01.

The most liquid index S&P SL20 gained 1.27 percent or 35.02 points to 2,799.53.

Banking and Insurance counters had seen interest on the back of positive sentiments from the IMF.

The central bank has said it could cut interest rates in future when the the country sees fall in inflation, which has already started decelerating.

The market saw a turnover of 1.5 billion rupees today,lower than the month’s daily average of 1.8 billion rupees and nearly half of 2022 average turnover of 2.9 billion rupees.

The bourse saw a flow of net foreign inflow of 45 million rupees extending the net offshore buying to 1.9 billion so far this year.

Top gainers of the day were Commercial Bank, Expolanka, and Ceylinco Insurance. (Colombo/Feb01/2023)

 

 

 

 

 

Continue Reading

Sri Lanka bond yields down at close

ECONOMYNEXT – Sri Lanka’s bond yields were down at close following a bond auction on Wednesday, dealers said while a guidance peg for interbank transactions remained unchanged.

“The rates were steady at the auction,” a dealer said.

“This can be a signal to the market saying the rates will go down in the future.”

A bond maturing on 01.07.2025 closed at 32.40/60 percent, down from yesterday’s 32.60/85 percent.

A bond maturing on 01.05.2027 closed at 29.10/35 marginally down from yesterday’s 29.20/75 percent.

The Central Bank’s guidance peg for interbank US dollar transactions remained unchanged at 362.14 rupees against the US dollar.

Commercial banks offered dollars for telegraphic transfers at 371.38 rupees on Friday, data showed. (Colombo/Feb 01/2022)

Continue Reading