Friday, August 14 2026
Friday, August 14 2026
MONETABRIEF – Sri Lanka's rupee closed stronger, appreciating to 333.45/55 to the US dollar Thursday from 3334.20/25 a day earlier, dealers said, amid foreign purchases of rupee bonds.
The central bank monetized a balance of payments surplus in July buying 348 million US dollars from bond buyers and others and has built up excess liquidity.
If the notes are dishonoured by the central bank when they turn into credit and imports, the rupee will depreciate.
There have been calls for the Treasury to buy dollars as it does not create money in the process, or depress interest rates temporarily and can 'safeguard' collected reserves without inflating the domestic monetary base.
Any unsterilized dollar purchases must be followed by unsterilized dollar sales to maintain monetary stability.
Sri Lanka lost monetary stability in the latter part of 2025 and missed reserve targets due to the IMF program having a reserve target which was not matched by a falling ceiling on domestic assets of the central bank.
Then central bank has temporarily mopped up the money through repos. The agency does not issue long term central bank securities to prevent new money from turning into credit and imports.
Bond yields continued to fall.
A bond maturing on 15.09.2027 closed at 10.00/10, little changed from 10.00/05 a day earlier
A bond maturing on 15.10.2028 closed 10.30/45 also flat from 10.30/45 percent.
A bond maturing on 15.12.2029 closed at 10.65/75 down from 10.66/75 percent.
A bond maturing on 01.08.2030 closed at 10.80/85 down from 10.92/11.00 percent.
A bond maturing on 15.10.2030 closed at 10.85/90 down from 10.95/11.05 percent.
A bond maturing on 01.02.2031 closed at 10.90/95 down from 10.98/11.05 percent.
A bond maturing on 15.01.2033 closed at 11.45/50 down from 11.55/65 percent.
A bond maturing on 15.10.2034 closed at 11.70/80 percent, down from 11.82/90 percent.
A bond maturing on 15.08.2036 closed at 12.20/30 percent down from 12.20/30 percent.
A bond maturing on 01.07.2037 closed at 12.30/40 percent, down from 12.45/55 percent. (Colombo/Aug13/2026)
| Sterling | 458.31 | Sell - |
| 3 month bill | 9.95 | 0.18 ▼ |
| 12-m bill | 10.20% | 0 - |
| Gold | $4035 | - - |
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