News & market updates

NGJA Chairman Dr. S.P. Chaminda said Sri Lanka is exploring a domestic gold refinery to process less-refined gold locally, reduce reliance on fully refined imports facing roughly 45% import levies, curb smuggling and support jewellery exports; discussions with foreign firms are ongoing and hoped to conclude this year.

Money market liquidity surplus rose to Rs.200.77 billion, driving a secondary bond-market rally and lower yields. A Rs.125 billion weekly Treasury Bill auction (Rs.40bn 91-day, Rs.65bn 182-day, Rs.20bn 364-day) is scheduled; the rupee also showed slight appreciation.

Sri Lanka’s rupee closed at 309.65/70 to the US dollar, slightly firmer than 309.72/77, while government bond yields fell across maturities (e.g. the 15.12.2026 bond closed at 8.35/45% down from 8.45/58%).

Standard Chartered forecasts Sri Lanka GDP growth of 3.5% in 2026 (from 4.5% in 2025), expects policy rates to remain unchanged and the rupee near 315 USD/LKR by end-2026; it warns of risks from cyclone damage, limited fiscal space and strained external financing.

Sri Lanka's rupee traded at 309.75/85 per US dollar, slightly weaker than the previous day. Government bond yields were mixed with several maturities easing, Rs.125,000 million of Treasury bills to be auctioned on Jan 21, and the ASPI fell 0.18%.

Overnight money market liquidity rose to Rs.196.08bn (highest since end‑Sept 2025) and was parked at the CB SDFR of 7.25%, fueling declines in money-market and bond yields. Repo/call rates eased to ~7.93%/7.96%, AWPR fell 21bp to 8.98%, and USD/LKR closed ~309.72/309.77 ($59.5m traded).

Foreign investors sold about USD 3.1m (net 948 million rupees) of Sri Lanka government securities in the week to Jan 14, reducing foreign holdings from a near 26‑month high.

The Sri Lankan rupee closed at 309.72/77 to the US dollar, roughly unchanged from Friday, while government bond yields fell across maturities (e.g., the 15.12.2029 bond eased to 9.65–9.69% from 9.70–9.75%).

HNB CEO Damith Pallewatte said exceptional loan growth in 2025 and a shift from government securities to lending are squeezing bank margins, tightening liquidity and raising funding costs. He warned deposit and lending rates are rising and that vehicle imports and lower single-borrower limits are reshaping credit and capital markets.

The 12 Jan Treasury Bond auction cleared 90.14% (Rs.184.79bn) of Rs.205bn offered, with several maturities issued above market levels (e.g., 15.06.35 at 11.08%), driving secondary-market yields higher week‑on‑week despite a midweek recovery. Weekly T-bill yields rose (91‑day 7.95%, 364‑day 8.48%) and the rupee closed around Rs.309.70/309.80.

Sri Lanka’s rupee was quoted at 309.75/80 to the US dollar on Monday, slightly weaker than Friday, while government bond yields were broadly steady (e.g. 2028 bonds around 9.05–9.10%). The ASPI rose 0.11% to 23,757 and the S&P SL20 fell 0.10% to 6,566.

Sri Lanka Treasury bill yields have edged up, breaking the unusually flat, compressed rates across tenures. Analysts warn the move signals government fiscal needs that could crowd out private credit, push up deposit and lending rates and exacerbate rupee depreciation and fiscal pressures.

Sri Lanka central bank net foreign exchange reserves fell to $2,298m in November 2025 from $2,533m in October, while buy-sell swaps climbed to $3,794m. Buy-sell swaps are inflationary, Parliament's Committee on Public Finance has questioned the central bank's use of risky derivatives, and the IMF provided a $206m emergency loan after cyclone Ditwah.

Sri Lanka's rupee closed weaker at 309.70/80 to the US dollar (from 309.35/50), while government bond yields fell on the long end and were otherwise consolidating; the 15.06.2035 bond eased to 11.10/15% from 11.15/19%.

Sri Lanka's rupee weakened to 309.50/60 per US dollar while government bond yields were broadly steady (e.g. 9.20–9.80% for 2028–2029 maturities and up to 11.20% for 2035). The ASPI was up 0.26% at 23,770.

Foreign portfolio manager Django Davidson said Sri Lanka's stocks are an 'absolutely fantastic opportunity' if the central bank adopts sensible policy, low inflation and policy stability. He noted mortgage lending was only 2.7% of GDP and warned recent currency depreciation and central bank framework flaws could risk another default.

An IMF team will visit Sri Lanka from Jan 22–28 to assess Cyclone Ditwah damage and to help restart the IMF Extended Fund Facility program. The IMF initially estimates the cyclone will reduce GDP by about 0.2%.

An IMF team will visit Sri Lanka from 22–28 Jan to assess Cyclone Ditwah damage and its implications for the paused EFF program after the IMF approved $206m in emergency RFI financing. IMF staff say the shock could widen the current-account deficit by ~$700m and lift 2026 average inflation to 5.4%.

Secondary Treasury bond market on 13 Jan 2026 saw renewed buying that drove yields lower across maturities, with total secondary Treasury trading volume of Rs. 18.53 billion. Money-market liquidity rose to a net surplus of Rs. 182.72 billion (SDFR deposits at 7.25%), call/repo ~7.96%-7.97%, USD/LKR closed at 309.35/309.50.

Sri Lanka Customs collected 106.6 billion rupees in the first 13 days of January, about 66% of the 160.2 billion January 2026 target. Customs recorded a record 2,551 billion in 2025 and set a 2026 target of 2,207 billion, citing stronger enforcement and a rebound in imports.

Rupee closed weaker at 309.35/50 per USD while government bond yields recovered and fell across the curve (e.g., 15.12.2026 at 8.45/50%, 15.03.2028 at 9.05/10%, 15.12.2029 at 9.70/72%). Dealers said several block trades were executed.

Weekly Treasury Bill auction saw weighted average yields rise for a fourth consecutive week: 91-day 7.95% (+7bp), 182-day 8.44% (steady), 364-day 8.48% (+1bp). The auction raised Rs.96.43bn of Rs.100bn, the secondary bond market recovered and USD/LKR closed marginally weaker at 309.20/309.30.

Sri Lanka's rupee was quoted at 309.20/28 per USD, opening flat, while government bond yields were broadly steady: the 15.12.2028 bond at 9.30-9.40% and the 15.06.2035 bond at 11.20-11.25%. The ASPI rose 0.36% to 23,693 and USD telegraphic transfer rates were 305.60/312.60.

Ceylon tea prices fell over two weeks due to buying disruptions from Iran, though High Growns recovered some losses on the second day. Rupee depreciation supported LKR prices and there was demand from markets like Russia and Dubai.

Sri Lanka's rupee closed at 309.20/30 per US dollar, weaker than 309.00/10 the previous day; government bond yields were broadly steady, with the 15.12.2026 note at 8.45–8.55% and the 15.03.2028 around 9.20–9.25%.

Central Bank Governor Nandalal Weerasinghe said Sri Lanka will seek to revise IMF EFF targets and has postponed the fifth review after Cyclone Ditwah, with an IMF team due later this month. He said the RFI was considered to buy time and official reserves are expected to reach close to US$8 billion by year-end.

Sri Lanka's rupee opened weaker at 309.05/15 to the US dollar and short-tenor government bond yields edged higher across several maturities; a 100,000 million rupee Treasury bill auction was ongoing.

A Treasury bond auction raised Rs.184.79bn (90.14% of Rs.205bn) with mixed yields — short and long tenors in line with pre-auction levels while mid-tenors rose (01.03.30: 9.74%; 01.06.33: 10.65%; 15.06.35: 11.08%; 15.08.39: 11.09%). An Rs.100bn T‑bill auction is on offer today; net liquidity surplus was Rs.168.89bn and USD/LKR closed near 309.00.

Sri Lanka's rupee closed stronger at 309.00/10 vs 309.00/30 the previous day, while government bond yields rose—e.g. the 15-Dec-2026 bond at 8.45-8.55% and the 15-Sep-2029 bond at 9.60-9.65%.

Sri Lanka’s rupee opened weaker at 309.10/30 per USD; government bond yields were broadly steady (mid‑2029 ~9.50–9.70%, 2032 ~10.30–10.35%) and the ASPI rose 0.49% to 23,770.