Tuesday Apr 28, 2026
Tuesday Apr 28, 2026
Tuesday, 28 April 2026 01:01 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market commenced the week with yields broadly steady, consolidating at prevailing levels.
External drivers remained firmly in focus, with ongoing Middle Eastern tensions and elevated crude oil prices continuing to weigh on sentiment.
However, positive developments on the domestic front provided a strong counterbalance. The latest fiscal performance data for January 2026 reflected a robust improvement, with revenue and grants rising 35.3% YoY to Rs. 468.75 billion, resulting in the primary surplus expanding 86.7% YoY to Rs. 222.82 billion. The overall Budget deficit also contracted significantly by 97% YoY to Rs. 3.81 billion.
In addition, the net liquidity surplus in the money market was recorded at Rs. 219.28 billion yesterday, increasing for the sixth consecutive day. This prompted the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka to drain out an amount of Rs. 25.00 billion by way of overnight Repo auction at a weighted average rate of 7.70%, for the first time in 11 days.
As a result, investor positioning in secondary Bonds market stayed defensive, with participants largely adopting a wait-and-see approach amid prevailing uncertainty. Accordingly, very limited trades were seen on selected tenors. The 15.12.28 maturity traded at the rate of 9.85% and the 01.07.37 maturity traded at the rate of 11.25%.
The total secondary market Treasury Bond/Bill transacted volume for 24 April was Rs. 5.66 billion.
Forex market
The USD/LKR rate on spot next contracts was seen closing the day depreciating to Rs. 319.00/319.25 as against the previous day’s closing level of Rs. 318.40/318.70.
The total USD/LKR traded volume for 24 April was $ 36 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
