News & market updates

Central Bank of Sri Lanka sold USD 223.3m in May 2026 (net USD 211.3m sold) — the largest monthly sale since 2024 — to defend the rupee amid Middle East-related pressure. May sales exceed total dollar sales for 2025 and 2024; YTD net purchases are USD 485.9m and the rupee is down 7.8% YTD (as of 05 Jun).

Sri Lanka's rupee closed at 335.50/336.25 to the US dollar on Friday, firming from 336.90/337.50 the previous day, while government bond yields fell (e.g. the 01.08.2030 bond closed at 12.05/20%, down from 12.25/40%).

Deputy Finance Minister Anil Jayantha said Sri Lanka's rupee is returning to a normal state through market forces, with the Central Bank's buying rate between 320–330 after a near four-year low of 354; he cited export, tourism and remittance inflows and interventions stabilising fuel-driven fluctuations.

Sri Lanka’s rupee weakened to 336.00/338.00 vs the US dollar in the spot market (from 336.90/337.50), while bond yields were largely steady; government bonds quoted e.g. 01.07.2028 at 11.85/12.00, 01.08.2030 at 12.25/12.35 and 15.03.2035 at 13.20/13.30. ASPI opened up 0.20% at 21,804.

State-owned enterprises' combined profit fell 17.6% to Rs. 444.4 billion in 2025, driven by the Ceylon Electricity Board's swing to a Rs. 38.7 billion loss. Excluding CEB, the remaining 50 SOEs posted a 21.5% rise in profits to Rs. 483.2 billion, with Bank of Ceylon the top contributor and several SOE and power-sector reforms advanced.

The Sri Lankan rupee weakened steadily this week, closing at Rs. 336.75/Rs. 337.50 yesterday versus Rs. 330.00/Rs. 332.00 last Friday, losing Rs. 6.75 on the buying rate and Rs. 5.50 on the selling rate over four trading sessions.

Secondary bond market remained subdued with yields edging higher after the Treasury Bill auction; short- to mid-dated maturities traded around 11.95%-12.00% while longer-dated lines traded up to about 13.30%. Money-market rates were elevated (call 9.16%, REPO 9.20%), net liquidity surplus Rs.111.94bn, and USD/LKR closed at 336.75/337.50.

Sri Lanka's rupee closed at 336.90/337.50 to the US dollar, weaker than 334.50/335.50 the previous day, while bond yields rose (01.08.2030 closed 12.25/40% vs 12.15/25%; 15.03.2035 13.20/30% vs 13.15/25%; 15.01.2033 flat at 12.30/75%).

Sri Lanka’s rupee was flat at 334.50/335.50 to the US dollar in the spot market and bond yields were broadly steady. Telegraphic transfer rates were 330.50/339.50 (buy/sell); the All Share Price Index opened up 0.07% at 22,027 while the S&P SL20 opened flat at 6,097.

Sri Lanka completed the IMF EFF fifth and sixth reviews and received close to $700 million; Finance Deputy Minister Dr. Anil Jayantha Fernando met IMF Resident Representative Martha Woldemichael to discuss recent economic developments and next steps.

Sri Lanka's gross public debt rose slightly to Rs. 32.23 trillion at end-March 2026 while its dollar value fell 2% to $102.27 billion; the PDMO reported central government debt rose in rupee terms, external debt restructuring progress and resumed creditor servicing.

Bangladesh has requested a new IMF-supported financial arrangement to back its economic reform program. IMF staff will engage with authorities, plan a visit to assess developments and discuss a potential program’s size and reform commitments tied to balance-of-payments needs.

Treasury bill yields rose for a third consecutive week — 91-day at 9.84%, 182-day at 10.01% and 364-day at 10.02% — and the auction was undersubscribed, raising Rs.111.16bn of Rs.140bn offered (79.40% subscription). Secondary bond market remained bearish, net liquidity surplus was Rs.101.71bn and USD/LKR closed at 335.00/337.00.

Sri Lanka's rupee closed at 334.50/335.50 to the US dollar on Wednesday, weaker than Tuesday's 332.00/333.50, while bond yields rose; the 01.08.2030 bond closed around 12.15–12.25% (up from ~12.05–12.15%) and the 15.03.2035 bond near 13.15–13.25%.

Bangladesh has requested a new IMF-supported financial arrangement to support its reform program; IMF staff will engage with authorities, plan a visit to assess developments, and negotiate the size and reform commitments of any successor program.

Sri Lanka’s central government debt fell to USD 98,965m at March 31, 2026 from USD 100,356m at end-2025, a nominal decline of USD 1,391m driven by lower domestic and external obligations. The rupee value rose slightly due to an LKR/USD rate shift and the government made USD 8,094m in debt service while finalizing bilateral agreements to resume external servicing.

Sri Lanka's rupee weakened to 333.00/335.50 per US$ in the spot market from 332.00/333.50 the previous day; bond yields were broadly steady and a 140,000 million rupee Treasury bill auction was ongoing.

Secondary bond market remained bearish with yields rising across the curve and a Rs. 140 billion Treasury Bill auction scheduled today. Call money stayed above 9% for a fourth day (9.14%) and USD/LKR closed at 332.50/333.50.

Sri Lanka's rupee closed at 332.00/333.50 to the US dollar on Tuesday (from 331.50/332.00), while bond yields were broadly steady; the telegraphic transfer rate was 327.00/336.00. 140,000 million rupees of Treasury bills are to be issued via auction on June 3.

Power Minister Anura Karunathilaka defended the latest fuel price hike as necessary to avoid supply disruption, noting CPC's May fuel import bill was about $524m. CPC said it loses Rs129/l on diesel and Rs60/l on Octane 92, Treasury support (~Rs57bn) may run out by end-June, and the government will enforce QR quotas to cut consumption.

The LMD-PEPPERCUBE Business Confidence Index rose seven points to 148 in May. Consecutive fuel price hikes, a roughly 5% fall in the Sri Lankan rupee year-to-date, higher electricity tariffs and a US$267m drop in official reserves have kept business sentiment fragile amid geopolitical tensions and rising cybercrime concerns.

Sri Lanka's rupee was quoted at 331.50/332.50 to the US dollar and bond yields rose, with the 01.11.2033 paper quoted at 12.85/13.00 percent (up from 12.00/80 percent). The All Share Price Index was up 0.04% at 22,272 while the S&P SL20 fell 0.08% to 6,145.

Secondary bond market opened on a bearish note as yields rose across the curve after a 100bp policy rate hike and global yield/oil pressure; key maturities traded around 11.95%–13.11% (01.08.30 11.95–12.10%, 15.01.33 12.30–12.45%, 01.06.33 12.75%, 15.03.35 12.95–13.11%).

Sri Lanka's government says its Rs.57 billion fuel subsidy allocation will end by June, prompting recent fuel price increases. Officials say the state has been covering about Rs.100/litre of diesel and Rs.20/litre of petrol while CPC is incurring losses (Rs.129 diesel, Rs.60 petrol).

Sri Lanka's rupee closed at 331.50/332.00 to the US dollar in the 1-week spot on Monday and domestic government bond yields rose. The telegraphic transfer rate was 326.00/335.00 (buy/sell); the 01.08.2030 bond moved to 12.05/15% from 11.80/90%.

Sri Lanka will strictly tighten enforcement of its fuel QR quota after state-run Ceylon Petroleum Corporation's fuel import bill rose to $524mn in May. Officials noted imports were $186mn in January and $97mn in February and said the move aims to curb consumption and dollar outflows.

CBSL reported the rupee's buying/selling rates at Rs. 325.97/335.70 on June 1; the currency has depreciated 5.4% year-to-date against the US dollar (end‑May 2026) and weakened versus several major currencies while appreciating 0.8% against the Indian rupee.

Sri Lanka's rupee was quoted at 330.00/332.00 to the US dollar in the spot market on Monday (from 331.00/332.00 on Friday); telegraphic transfer rates were 326.00/335.00. Government bond yields were largely flat (2030 at 11.80–11.90%), and the ASPI was up 0.30%.

Sri Lanka's current account slipped into a $532.4m deficit in April, erasing the Q1 surplus and leaving a $0.9m deficit for Jan–Apr, driven by a sharply widened trade gap (imports +45.7% YoY) and weaker tourism amid higher fuel spending; reserves stood at ~$6.8b and IMF review released about $695m.

Secondary bond market ended the week bullish, with yields falling about 20–35bps on Friday after US‑Iran ceasefire optimism and Sri Lanka securing IMF 'Super Tranche' approval, despite a 100bp policy-rate hike earlier in the week. Foreign holdings fell Rs.7.33bn to Rs.126.10bn; money-market surplus dropped to Rs.92.15bn and call/repo rates rose to 9.10%/9.13%.