Tuesday Sep 01, 2026
Tuesday Sep 01, 2026
Tuesday, 1 September 2026 00:35 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market kicked off the new trading week on a positive note yesterday, with yields edging lower across selected tenors while the rest of the yield curve largely consolidated. The long end of the yield curve saw rates decline while the short to the belly end held broadly steady. Activity and transaction volumes remained robust, supported by the execution of several sizeable block transactions.
The 15.12.28 maturity traded at the rate of 10.10% and the 15.12.29 at 10.30%. The 01.08.30 and 15.10.30 traded within the ranges of 10.50%-10.46% and 10.55%-10.50% respectively. The 01.02.31 traded at 10.60%. The 15.01.33 and 01.11.33 traded at the rates of 11.20% and 11.30%-11.35% respectively. The 15.10.34 traded down the range of 11.50%-11.45%, the 15.08.36 traded lower at 11.78% and the 01.07.37 at 11.82%.
On the inflation front headline inflation, as measured by the Colombo Consumer Price Index (CCPI), accelerated to 8% year-on-year in August 2026, up from 7.3% in July, according to the Department of Census and Statistics.
In the money market, the net liquidity surplus was recorded at Rs. 132.33 billion. Rs. 82.77 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 0.44 billion drawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka absorbed Rs. 70 billion in liquidity through a series of Repo auctions. This comprised Rs. 40 billion via an overnight Repo auction and Rs. 10 billion through a 2-day term Repo auction, both at a weighted average yield of 8.75%, together with Rs. 20 billion through a 30-day term Repo auction at a weighted average yield of 9.19%.
The weighted average yields on overnight call money and repos were recorded at 8.85% and 8.91% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at Rs. 328.10/328.30 yesterday, with the rupee depreciating marginally from Rs. 327.98/328.04 recorded on the previous day.
The total USD/LKR traded volume for 28 August amounted to $ 170.25 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
