MONETABRIEF – Sri Lanka's rupee closed at 330.20/40 to the US dollar in the spot market Thursday, down from 329.50/75 a day earlier, dealers said, while bond yields were steady.

The International Monetary Fund delivered a blow to activists and economists who were seeking to control the central banks discretion to push up the cost of living and undermine democratically elected governments by advising against a tighter inflation target.

Macro-economists busted the rupee from 300 to 309 over 2025 and from 309 to 330 amid a budget surplus and also enjoying 'central bank independence' and pushed up inflation to 8 percent, higher than the already high 5-7 percent.

Inflation shot up to 8 percent, over the controversial 5-7 percent target, and there has been no accountability for the central bank, while government popularity has plunged as the electorate held them accountable.

The IMF said the central bank should keep its 5 percent inflation target, through which it reflated the country and triggered a currency collapse, by dishonoring its own note issue.

Monetary debasement destroys capital, frittering away savings that could be used to repay debt and drives up nominal interest rates.

Sri Lanka started to experience high levels of inflation (above the US) after the monetary debasement that came in the wake of the IMF's Second Amendment to its articles.

A bond maturing in 15 October 2028 closed at 10.40/60 percent, down from yesterday's 10.50/60 percent.

A bond maturing in 15 September 2029 closed at 10.60/75 percent, down from yesterday's 10.80/90 percent.

A bond maturing in 01 August 2030 closed at 11.15/20 percent, up from yesterday's 11.00/10 percent.

A bond maturing in 01 February 2030 closed at 11.25/35 percent, up from yesterday's 11.05/12 percent.

A bond maturing in 01 November 2033 closed at 11.75/90 percent, up from yesterday's 11.65/75 percent.

A bond maturing in 15 October 2034 closed at 11.95/12.00 percent, up from yesterday's 11.80/85 percent.

A bond maturing in 15 August 2036 closed at 11.95/12.25 percent, down from yesterday's 12.00/10 percent.

A bond maturing in 01 July 2037 closed at 11.95/12.25 percent, down from yesterday's 12.05/15 percent. (Colombo/Sept24/2026)