On Wednesday, Sri Lanka’s rupee strengthened in the spot market, closing at 309.60/80 against the US dollar, recovering from the previous day’s rate of 310.00/310.20, according to market dealers. However, bond yields experienced an upward trend.

In 2025, the Sri Lankan rupee depreciated despite record current account surpluses and improvements in the national budget. This development challenges the usual explanations offered by macro-economists, who often attribute such depreciation to monetary debasement.

A bond set to mature on December 15, 2026, concluded at a yield of 8.40/80 percent, rising from 8.40/70 percent. The bond maturing on February 15, 2028, closed at a yield of 9.05/20 percent, up from 9.00/10 percent. Meanwhile, the bond maturing on October 15, 2029, closed at 9.75/85 percent.

The bond maturing on December 15, 2029, saw an increase, closing at 9.75/90 percent from the previous 9.70/80 percent. Additionally, the bond maturing on July 1, 2030, was quoted at 9.85/95 percent, compared to 9.85/90 percent from the previous session. Finally, the bond maturing on October 1, 2032, closed at 10.35/60 percent, up from 10.32/40 percent. (Colombo/Dec31/2025)