News & market updates

Sri Lanka Treasury bill yields rose across maturities at Wednesday's auction: 6-month +32bp to 8.27%, 3-month +19bp to 7.74% and 12-month +26bp to 8.45%. Offerings were partially taken up, with 12.46bn of 30bn and 31.02bn of 50bn sold.

Sri Lanka Customs collected Rs870 billion from vehicle imports and expects total year-end customs collections of about Rs2,545 billion. Customs said targets were revised up and attributed higher collections to streamlined processes and use of digital technology amid ongoing economic recovery and recent currency depreciation concerns.

Sri Lanka's rupee opened weaker at 310.00/25 per US dollar. Bond yields were broadly steady (mid-dated yields around 9–10%), a Rs 120,000 million T-bill auction was ongoing, and the ASPI rose 0.70% to 22,603.

Sri Lanka's interest rates edged up through 2025, reducing the risk of a second sovereign default; the prime lending rate rose to about 8.94% by December while the policy rate stood at 7.75% after a May cut. Reserve collections missed projections and the rupee depreciated, analysts warn.

A government bond auction raised Rs.43.18bn (78.51%) of the Rs.55bn offered, with the 01.07.37 maturity fully subscribed at a weighted average yield of 10.90%. Money market liquidity rose to a Rs.124.26bn surplus and a Rs.120bn weekly T‑bill auction is scheduled; USD/LKR traded around Rs.310.

Sri Lanka's rupee closed weaker at 310.00/310.20 to the US dollar (from 309.85/309.95) while government bond yields were broadly steady; an auction sold Rs43.18bn of 2030 and 2037 bonds and a Rs120bn T-bill auction is due Dec 31.

Sri Lanka's rupee weakened to 309.99/310.00 against the US dollar from 309.85/95, while bond yields remained broadly steady; a Rs 55,000mn Treasury bond issue is ongoing and a Rs 120,000mn T-bill auction is due Dec 31. Local indices were up (ASPI +0.54%).

Central government debt rose by 936 billion rupees to September 2025—more than double the 441 billion-rupee budget deficit—with foreign debt up 545 billion rupees to 18,974 billion amid 2025 rupee depreciation. Analysts pointed to central bank policy, a May rate cut and Treasury dollar operations as contributing factors.

IMF projects Sri Lanka's gross official reserves will rise to $6.55bn by end-2025, then to $8.9bn in 2026 and $13.4bn in 2027, while the current account surplus narrows to $604m in 2025 and turns into a $386m deficit in 2026.

Secondary Treasury bond yields swung—initial declines reversed by profit-taking—closing slightly above opening as markets await today's Rs.55 billion auction (Rs.30bn 01-Jul-2030 coupon 9.75%; Rs.25bn 01-Jul-2037 coupon 10.75%); USD/LKR closed at 309.85/309.95.

Foreign investors sold a net USD 5.06m (1,545 million rupees) of Sri Lanka government securities in the week to Dec 24, reversing the prior week's inflows and reducing foreign holdings from a near two‑year high.

Sri Lanka's rupee closed weaker at 309.85/95 per US$ (from 309.65/75), and government bond yields moved up: 15.12.2026 at 8.40–8.70%, 15.02.2028 at 9.00–9.06%, 15.12.2029 at 9.70–9.75%, 01.10.2032 at 10.30–10.35%, and 01.11.2033 at 10.50–10.60%.

Sri Lanka's rupee was quoted at 309.60/75 to the US dollar, broadly unchanged from Friday, while short‑end government bond yields eased; the Treasury has a Rs 55,000 million bond auction on Dec 30 and a Rs 120,000 million T‑bill auction on Dec 31.

Secondary bond yields closed higher week‑on‑week after the weekly T‑Bill auction pushed weighted average rates up across maturities (364‑day +16bp); the Rs.150bn T‑Bill offer was 54.97% subscribed (Rs.82.45bn raised). Foreign holdings fell by Rs.1.55bn and money‑market liquidity rose to Rs.111.66bn; USD/LKR closed near 309.70.

Vehicle sales in Sri Lanka fell about 50% after Cyclone Ditwah, and auto importers are seeking relief from a 3%/month penalty on vehicles unsold after three months, requesting a six-month extension. Importers say they face ~10% loan interest, declining import volumes and rupee volatility.

At SLABA's flagship forum, apparel industry leaders warned the sector is on fragile stability and urged immediate structural reforms to boost exports and productivity; speakers cautioned exchange-rate volatility, interest-rate risk and weak domestic demand could force macro adjustments.

Sri Lanka's overall budget deficit fell 73% to Rs325 billion and revenues rose 35.5% to Rs4,945 billion, producing a budget current account surplus of Rs204 billion to November. The central bank has run broadly deflationary policy amid a weakening rupee and concerns over its 5% inflation target.

JB Securities analysis: premium vehicles costing up to LKR 200–300 million, including a pre-owned Bentley Continental GT, Ferrari 296 GTB and Mercedes‑Maybachs, were registered in Sri Lanka in November 2025; about two‑thirds of their street value accrues to the government as taxes. Year‑to‑date JB data shows 5 used Bentleys, 1 Rolls‑Royce, 10 used Porsches, 2 Ferraris, 2 Lamborghinis and 6 new Porsches registered.

Sri Lanka's rupee closed flat at 309.65/75 to the US dollar while local government bond yields fell across several maturities (e.g., the 15.03.2028 bond at 8.95/9.05%).

Sri Lanka's rupee was quoted at 309.70/80 to the US dollar, slightly weaker than 309.65/75, while government bond yields fell — e.g. 15.03.2028 ~9.06/11% (from 9.10/18%), 15.09.2029 9.60/65% (from 9.70/80%), 01.07.2030 ~9.75/80% (from 9.90/95%).

Sri Lanka Christmas cake inflation rose 4.4% in 2025 amid rupee depreciation, with the cost of 11 key ingredients up to 15,180 rupees from 14,744 in 2024. The rupee fell to 306.30/USD over 12 months and Colombo CPI rose 2.1% to November 2025 amid central bank exchange-rate interventions.

Secondary government bond yields rose sharply after the T‑bill auction, with the 364‑day tenor up 16bps and several maturities trading higher (e.g. 01.07.30 at 9.95%). The Treasury will auction Rs.55bn on 30 Dec (Rs.30bn 1‑Jul‑2030 @9.75%; Rs.25bn 1‑Jul‑2037 @10.75%); liquidity surplus Rs.102.48bn; USD/LKR ~309.70.

Sri Lanka's rupee closed flat at 309.65/75 to the US dollar while government bond yields rose; the 15.03.2028 bond closed at 9.10–9.18% and the 01.11.2033 bond rose to 10.54–10.60%.

Sri Lanka's rupee opened at 309.60/70 per US$, essentially flat from the prior day, while government bond yields were broadly steady (e.g. 15.12.2028: 9.15/25%; 01.11.2033: 10.45/50%). The rupee has fallen from about 292 in Dec 2024 amid central bank measures restricting convertibility.

The 364-day Treasury Bill weighted average rate rose 16bps to 8.19% at yesterday's auction, while the 91- and 182-day rates moved to 7.55% and 7.95%; the auction was undersubscribed at 54.97% (Rs.82.45bn of Rs.150bn). Secondary bond trading tapered off, net liquidity surplus rose to Rs.92.22bn and USD/LKR closed at 309.65/309.75.

IMF cut Sri Lanka's projected Net International Reserves for end‑2025 to about US$2,159m (a US$666m rise from 2024) from a prior projection of US$2,729m; the end‑December IMF program target is US$448m. The downgrade reflects risks from rate cuts, strong private credit, rupee pressure and cyclone-related outflows.

Foreign investors bought around USD 2.44 million of Sri Lanka government securities in the week to Dec 18, reversing the prior week's outflow and marking the 12th week of purchases in the last 16, with foreign holdings near a two-year high.

Sri Lanka Treasury bill yields rose at Tuesday's auction, with the 12-month yield up 16 basis points to 8.19%. The debt office offered 150 billion rupees and raised 82.4 billion; 3-month and 6-month yields climbed to 7.55% and 7.95% respectively, with sales below offers.

Sri Lanka's rupee closed weaker at 309.65/75 per US dollar (from 309.50/65) and government bond yields rose, with the 15.12.2028 issue at 9.20/30% (from 9.05/15%). Other maturities including 2029, 2032 and 2033 also recorded increases.

Sri Lanka's rupee opened weaker at 309.60/85 per USD and local government bond yields edged up on shorter tenors (e.g., the 15.12.2029 bond quoted ~9.60–9.68%). A Rs 150,000 million Treasury bill auction was ongoing.