News & market updates

US dollar spot rate reached Rs. 318.69 on April 29, 2026, surpassing Rs. 318; the buying rate was Rs. 315.54 and the selling rate Rs. 323.26.

Sri Lanka's rupee weakened to 319.50/320.50 against the US dollar while government bond yields were mostly steady and an auction of 140,000 million rupees of Treasury bills was ongoing.

Secondary bond yields held broadly steady as markets stayed subdued ahead of a Rs. 140 billion Treasury Bill auction (Rs.55b 91-day, Rs.45b 182-day, Rs.40b 364-day). Liquidity surplus stood at Rs.231.90b and USD/LKR closed around 319.00/320.00.

The UAE will quit OPEC from May 1, freeing its 5 million bpd capacity and raising short-term market volatility and the risk of higher global oil prices. For Sri Lanka, a net oil importer spending nearly a fifth of its import bill on energy, this could increase the fuel import bill, pressure the rupee and drive inflation while accelerating calls for bilateral supply deals and renewables.

Sri Lanka's rupee closed at 319.00/320.00 to the US dollar, weaker from 318.00/318.25 the previous day, while secondary-market government bond yields were broadly steady ahead of a Rs 140,000 million Treasury bill auction; select benchmark maturities showed little change.

Sri Lanka’s rupee was quoted at 319.00/320.00 to the US dollar, weakening from 318.00/25 the previous day, while secondary-market bond yields were broadly steady (e.g., a 15.10.2029 bond at 9.95/10.00%). Analysts said the depreciation followed central bank FX swaps and dollar purchases that boosted liquidity; a 140,000 million rupee T-bill auction is scheduled Wednesday.

Secondary bond yields were broadly steady as money-market liquidity rose above Rs.200bn and the Central Bank drained Rs.25.00bn via an overnight repo at a weighted average rate of 7.70%. January fiscal data showed revenue and grants up 35.3% YoY to Rs.468.75bn and the primary surplus up 86.7% YoY to Rs.222.82bn; USD/LKR closed around Rs.319.

Sri Lanka's rupee closed around 318.00/25 to the US dollar in the spot market with interventions at 317.75 and 318.00; the spot next closed at 319.00/10 and banks quoted TT around 321.25. Secondary bond yields were broadly steady, with near-term and long-term issues trading largely flat (e.g., 2026 at ~8.65/75%).

Sri Lanka rupee quoted at 318.25/319.00 to the US dollar on Monday, unchanged from Friday; government bond yields were broadly steady, e.g. the 15.12.2028 bond at 9.80–9.90% and 01.03.2030 at about 10.00%.

Sri Lanka's budget was almost in surplus in January 2026 with a gap of 3.8 billion rupees after 2025's deficit collapse, but the central bank's depreciation of the rupee has pushed up the cost of living.

Money market liquidity surplus rose sharply to Rs. 199.17 billion from Rs. 106.32 billion. T-bill yields moderated at the auction (aggregate accepted Rs. 121bn), foreign holdings of rupee Treasuries rose by Rs. 1.28bn to Rs. 144.20bn, and USD/LKR weakened to Rs. 318.40/318.70.

The Asian Development Bank estimates Sri Lanka has about $6 billion of unrealised export capacity — exports could rise 47% if gaps are addressed — and says weak export growth has widened the trade deficit and pressured the rupee ahead of rising external debt repayments. Usable reserves cover roughly three months of goods imports, limiting the Central Bank's ability to defend the currency.

Secondary Treasury bond yields held broadly steady for a fourth session with limited trades (total secondary turnover Rs.36.95bn), while net money-market liquidity rose to Rs.167.46bn; USD/LKR spot next closed at Rs.318.25/319.00.

Asia Siyaka Commodities said March tea exports fell 16% YoY to 19.7 Mnkg, leaving 1Q exports down 4.5% to 60.3 Mnkg. Rupee earnings held at Rs.109 billion due to currency depreciation, but dollar earnings fell 5% to $351m amid higher freight/insurance and Gulf shipping disruptions.

WFP warns the Middle East conflict is threatening Sri Lanka's recovery by driving fuel costs up 33–40%, raising food and fertiliser import bills (Sri Lanka imported $2.5bn of food in 2025) and risking remittances (around 80% originate in the Gulf). These shocks could push inflation higher, weaken the rupee, strain reserves and hit tourism and household food security.

Sri Lanka's per capita GDP at current market prices rose to an all-time high of $5,003 in 2025, up from $4,546 in 2024 and $3,818 in 2023, marking a recovery from the 2019–22 contraction. CBSL data say the rise reflects a rebound in nominal output and exchange-rate effects on dollar-denominated incomes.

Weekly Treasury Bill auction was fully subscribed; the 91-day yield rose 12 bps to 8.27% (182-day +1bp to 8.23%, 364-day unchanged at 8.52%). Secondary bond yields were broadly steady, secondary turnover was Rs. 36.95bn, net liquidity surplus Rs. 151.01bn, and USD/LKR closed at 316.75/317.00.

Secondary bond yields held broadly steady with key maturities trading between 8.40% (01.08.26) and 11.00% (01.11.33); a Rs.110 billion Treasury Bill auction (Rs.45bn 91-day, Rs.35bn 182-day, Rs.30bn 364-day) is due today. USD/LKR closed at 316.50/316.75 and net liquidity surplus stood at Rs.123.32bn.

DFCC Bank convened a discussion examining how the Middle East conflict could transmit into Sri Lanka’s economy, highlighting energy price, shipping, FX, tourism and remittance channels. The forum emphasised banks’ role in helping clients manage FX exposure, trade finance and liquidity amid rising uncertainty.

SLCPI has called for urgent action to prevent looming medicine shortages in Sri Lanka. It said rising fuel (+38%) and freight (+40%) costs, API/input price increases (up to 70%), rupee depreciation and import‑licence/pricing delays are disrupting pharmaceutical imports and supply continuity.

The Central Bank's Annual Economic Review 2025 reports real GDP growth of 5% and continued macroeconomic stabilization, with a third consecutive current-account surplus and reserve build-up. Monetary policy remained accommodative supporting low interest rates, credit expansion and improved bank/non-bank profitability, while exchange-rate flexibility and easing capital controls were noted.

Rupee quoted at 316.40/80 per USD on Apr 21, slightly weaker than 316.30/70 the prior day, while government bond yields nudged up on shorter tenors and stayed steady on the long end (e.g. 01.07.2028 at 9.60/9.70%, 15.10.2029 at 9.95/10.05%).

Secondary bond yields held broadly steady, with total secondary Treasury bond/bill turnover of Rs. 9.50 billion on 17 April. Money markets recorded a net liquidity surplus of Rs. 112.44 billion, SDFR deposits of Rs. 138.44 billion at 7.25%, overnight rates ~7.67–7.70% and USD/LKR ~316.40/316.90.

Hatton National Bank (HNB) was ranked the best-performing bank in Category 1 by K Seeds Investments for the year ended 2025. The ranking used nine financial KPIs and comes as Sri Lanka's banking sector benefited from lower inflation, steadier rates and exchange-rate stability in 2025.

Sri Lanka's rupee closed at 316.30/70 per US$ (flat) and government bond yields were broadly steady on Apr 20, 2026; e.g., 15.12.2026 at 8.45–8.55% and 01.07.2030 at 10.15–10.20% (slightly down).

Sri Lanka's and China's central banks discussed promoting renminbi‑denominated settlements to facilitate trade. CBSL governor also met India's RBI governor to discuss promoting Indian rupee settlements for trade and tourism.

World Bank projects Sri Lanka's growth will moderate to 3.6% in 2026, citing higher energy prices and a transition to more sustainable growth. It flagged risks from persistently high energy costs, flight disruptions hitting tourism, skilled-labour shortages, weak public capex execution and climate shocks.

Sri Lanka's rupee was quoted at 316.40/80 to the US dollar, slightly weaker, while government bond yields were largely steady (e.g. 01.05.2027 at 8.75/85%). The All Share Price Index fell 0.72% to 22,609.71 and the S&P SL20 fell 0.58% to 6,227.77.

Secondary bond market ended the week steady to marginally lower with notable yield compression in the 2029–2034 tenors. T-bill weighted average yields rose (91d 8.15%, 182d 8.22%, 364d 8.52%) amid an undersubscribed auction; foreign holdings saw a Rs.2m net inflow and USD/LKR closed at 316.55/316.70.

Sri Lanka's rupee closed weaker at 316.50/70 to the US dollar, from 315.85/316.10, while government bond yields edged up slightly across maturities (e.g. 2028 yield to 9.65/75% from 9.50/65%).