FINANCIAL CHRONICLE – The Sri Lankan rupee did not have a current spot quote available. According to dealers, the one-week forward rate stood at 321.60/90. Meanwhile, bond yields experienced a decline.
On Wednesday, the rupee was valued at 321.00/30 against the US dollar in the spot next market, reflecting a notable depreciation from the previous day’s rate of 319.90/320.40.
Recently, the central bank initiated repo operations to absorb some of the surplus liquidity it had accumulated through buy-sell swaps and dollar acquisitions. The bank had intentionally allowed an excess liquidity level of nearly 400 billion to persist in the financial system, which is approximately double the amount present prior to the economic crisis.
Throughout the current cycle, the rupee has been gradually weakened from levels around 297.50 to 310, a process facilitated by money supply expansion through buy-sell swaps and substantial dollar purchases. This strategy aimed to encourage exporters to transact at progressively lower prices, while asserting that the rupee’s value was determined by market forces, a claim that critics have challenged.
In 2026, the rupee further depreciated from 310 to 320 against the dollar, despite a slowdown in credit conditions, as aggressive dollar purchases were made in February to stave off any potential appreciation and restore confidence in the currency.
In the secondary market, the bond maturing on July 1, 2028, was quoted at 9.65/70 percent, down from 9.70/75 percent. A bond set to mature on October 15, 2029, was quoted at 9.90/10.00 percent, a decrease from 10.05/15 percent. Additionally, a bond maturing on July 1, 2030, was quoted at 10.10/15 percent, down from 10.18/23 percent. The bond maturing on June 1, 2033, was quoted at 10.95/11.05 percent, lower than the previous 11.00/10 percent, while a bond maturing on June 15, 2034, was quoted at 11.18/22 percent, down from 11.25/35 percent. Lastly, a bond due on June 15, 2035, remained stable at 11.25/35 percent.
For telegraphic transfers, the rates for the US dollar were 317.5000 for buying and 324.5000 for selling. The British pound was quoted at 430.8966 for buying and 442.3418 for selling, while the euro stood at 370.9293 for buying and 382.4691 for selling.
On the Colombo Stock Exchange, the All Share Price Index rose by 0.75 percent, or 169.56 points, reaching 22,909. The S&P SL20 also increased by 0.74 percent, or 46.24 points, to settle at 6,291. (Colombo/May7/2026)
