Sri Lanka rupee closes at 319.60/320.00 to US dollar; bond yields edge up

Sri Lanka’s rupee closed at 319.60/320.00 to the US dollar in the spot market on Monday, after trades at 319.75/320.00 the previous day, dealers said, while bond yields edged up on the longer tenors.

On April 30 inflation reached the mid-point of the central bank’s target of 5 percent. The agency can create more inflation and depreciate the rupee even more, before any corrective action is taken.

Earlier this week the central bank started repo operations mopping up some of the excess liquidity it had built up from buy-sell swaps and dollar purchases.

To debase the rupee the agency allowed excess liquidity of almost 400 billion to remain in the system, almost twice the level before the economic crisis.

Sri Lanka’s exchange rate depreciation by ‘Political Ravishment’

A bond maturing on 01.05.2027 closed at 8.85/95 percent.

A bond maturing on 01.03.2028 closed at 9.40/60 percent.

A bond maturing on 15.10.2029 closed at 9.95/10.05 percent, up from 9.95/10.00 percent.

A bond maturing on 01.07.2030 closed at 10.20/25 percent, up from 10.17/20 percent.

A bond maturing on 15.12.2032 closed at 10.80/90 percent.

A bond maturing on 01.11.2033 closed at 11.00/10 percent, up from 10.95/11.00 percent.

A bond maturing on 15.06.2034 closed at 11.20/25 percent.

Source: Economy Next