Sri Lanka’s rupee gains as bond yields rise and Treasury bills sell out

Sri Lanka’s rupee was quoted at 335.25/35 per US dollar on July 3, 2026, firming from the previous day’s 335.90/336.00. Bond yields on government securities edged higher, with a 2030 maturity bond moving from 11.18% to 11.25%.

The Colombo Stock Exchange showed a flat to modestly higher market, with the All Share Price Index up 0.03% to 22,229.37 and the S&P SL20 up 0.11% to 6,211.08. Gain leaders included Dialog Axiata and Vallibel One, while Janashakthi Insurance and National Development Bank fell. Singer Finance reported assets exceeding 100 billion rupees in Q1‑2026/27.

Treasury bills sold on July 3 totalled 7.731 billion rupees at an average 10.30% rate, bringing weekly sales to 107.731 billion rupees. The central bank noted a current‑account deficit of US$194 million in May, with a cumulative Jan‑May deficit of US$97 million, driven by a widening trade gap, sharply higher fuel‑import costs and a 20% rise in vehicle imports. Services surplus contracted 36.8% year‑on‑year, while tourist arrivals rose 9.6% but earnings fell 5.1%.