On Friday, the Sri Lankan rupee closed at 309.75/85 against the US dollar in the spot market, showing a slight depreciation from the previous day’s rate of 309.45/60, according to market dealers. This decline continues a trend from last year when the rupee weakened from 293.25/75 against the dollar, despite record current account surpluses and improved budget conditions, which usually rule out the typical macroeconomic scapegoats for currency depreciation.

In the bond market, yields closed slightly lower. The bond maturing on December 15, 2026, remained unchanged at 8.40/70 percent. Similarly, the bond maturing on September 15, 2027, also closed flat at 8.95/9.00 percent. The bond maturing on February 15, 2028, decreased to 9.00/05 percent from a previous 9.00/10 percent.

The bond maturing on December 15, 2028, closed at 9.18/22 percent, down from 9.20/25 percent. Meanwhile, the bond maturing on December 15, 2029, saw a slight decrease, closing at 9.72/77 percent from the previous 9.75/80 percent. The bond maturing on July 1, 2030, was quoted at 9.75/80 percent, a decrease from 9.80/85 percent.

Finally, the bond maturing on November 1, 2033, closed at 10.45/55 percent, down from 10.50/60 percent.

(Colombo/Jan2/2026)