MONETABRIEF – Sri Lanka sold all offered 150 billion rupees of 2030, 2034 and 2037 bonds with similar or close maturities moving up from the last auction, official data showed.
The debt office sold all offered 70 billion rupees of 15 October 2030 bonds to yield 11.57 percent.
At a June 26 auction 2030 bond were sold at 11.44 percent.
The debt office sold all offered 50 billion rupees of 15 October 2034 bonds to yield 12.04 percent.
At a June 26 auction 2034 bond were sold at 11.88 percent.
The debt office sold all offered 30 billion rupees of 01 July 2027 bonds at 12.58 percent.
Sri Lanka's bond yields moved up over the past week, amid renewed hostilities between Iran and the US.
In Sri Lanka the central bank tends to internalize negative external shocks by depreciating the currency, by denying convertibility to notes it has previously issued by purchasing dollars or through domestic operations.
Last week large volumes of dollars flowed into bond markets, but the positive shock was not allowed to appreciate the currency.
Sri Lanka's central bank has a long history of creating high inflation through rate cuts and monetary depreciation, especially after the IMF's Second Amendment when depreciation started to destroy budgets and push nominal interest rates to very high levels.
In the first quarter of 2026, the rupee depreciated sharply as the central bank denied convertibility to notes created in the previous few months. (Colombo/July14/2026)