Sri Lanka sells less than offered treasury bills, yields flat

Wednesday September 24, 2025 3:36 pm

ECONOMYNEXT – Sri Lanka has sold 34 billion rupees of Treasury bills, of an offered 38 billion, with yields flat across maturities, data from the state debt office showed.

The 3-month yield was unchanged at 7.57 percent, with 10 billion rupees of bills offered and 3.21 billion sold.

The 6-month yield was unchanged at 7.89 percent, with 12 billion rupees offered and 29.14 billion sold.

The 12-month yield was unchanged at 8.02 percent with 16 billion rupees offered and 1.98 billion rupees bills sold.

69.26 billion bids were received.

The 3-month and 12-month bills are available on tap at the weighted average yield.

The settlement date is Sep 26. (Colombo/Sep24/2025)

Wednesday September 24, 2025 4:30 pm

ECONOMYNEXT – The Colombo Stock Exchange All Share Price Index (ASPI) climbed 0.26 percent on Wednesday ending a volatile session, data on its site showed.

The broader ASPI climbed 55.61 points from Tuesday, to end at 21,338.45; while the more liquid S&P SL20 closed 0.13 percent, or 7.92 points higher, at 6,081.06.

The top contributors to the ASPI were Ceylinco Holdings (up 75.00 rupees at 3,175.00), LB Finance (up 8.00 rupees at 149.50), Hayleys (up 3.25 rupees at 188.00), Central Finance Company (up 6.25 rupees at 289.00) and Commercial Bank (up 1.50 rupees at 194.00).

Market turnover was 5.6 billion rupees on Wednesday, while the share volumes was 185,795,899.

Sri Lanka’s Mercantile Investments and Finance PLC said it will seek shareholder approval for a share sub-division which will see an ordinary share split into 200 ordinary shares.

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Elsewhere, equity markets saw mixed sentiments on Wednesday.

European defence stocks rose following US president Donald Trump comment on social media platform Truth Social.

“I think Ukraine, with the support of the European Union, is in a position to fight and WIN all of Ukraine back in its original form,” Trump wrote on Truth Social on Wednesday.

BAE Systems Plc was trading 1.08 percent higher at 1,972.00 British pence sterling while Dassault Aviation was trading 6.00 euro higher at 288.80 euro.

Indian equity markets continued to fall on Information Technology related shares following Trump imposing a one time US 100,000 dollars fee on new applicants on the H-1B visa policy from Sunday midnight.

The Nifty 50 index fell 0.45 percent to 25,056.90, while BSE Sensex moved 0.47 percent to 81,715.63.

Pakistan’s KSE 100 index fell 0.18 percent to 158,236.67.

Tokyo’s Nikkei 225 index fell as “overnight declines on Wall Street and investor moves to lock in gains after recent sharp advances,” Japan’s The Mainichi newspaper said.

The index moved 0.43 percent, or 193.36 points down, to 45,300.30.

As at 4.20 pm Sri Lankan time, spot gold was trading at 3,774.60 US dollars, up 2.74 US dollars. (Colombo/Sep24/2025)

Wednesday September 24, 2025 3:19 pm

ECONOMYNEXT – There is no law on using cryptocurrency as an asset class in Sri Lanka, the central bank governor said, but it raises concerns about money laundering.

“Since cryptocurrency is a relatively new thing, no law has been introduced on cryptocurrency, or virtual currency,” Nandalal Weerasinghe told reporters.

“It cannot be used as legal tender in the country as per our foreign exchange act, but it can be used as an asset class, an investment.

“The problem is, we don’t know if it’s used for money laundering.”

Trade Minister Wasantha Samarasinghe, in his asset declaration, has said he holds 3,000 cryptocurrency, sparking debate on whether or not it is illegal. (Colombo/Sep24/2025)

Wednesday September 24, 2025 2:29 pm

SINGAPORE (S&P Global Ratings) Sept. 24, 2025 — Asia-Pacific’s credit conditions are keeping steady, after strong first-half growth and supportive financing conditions. However, the road ahead looks bumpy. That’s according to a report S&P Global Ratings published today, titled “Credit Conditions Asia-Pacific Q4 2025: On A Jagged Course.”

The “frontloading” of exports and resilient domestic consumption have supported the region’s growth in 2025. However, slower trade will start materializing in fourth-quarter 2025 as effects of tariffs start to unfold. Consequently, we expect Asia-Pacific’s growth to slow to 4.4% in 2025 and 4.0% in 2026.

This combined with other risks could lead to reversals in market sanguinity and easy financing conditions.

“Abundant liquidity, narrowing spreads, and steady yields have desensitized markets to tail risks. Should shock events occur, a significant correction may occur in asset prices such as bonds, equity, and real estate,” said Eunice Tan, head of Asia-Pacific credit research at S&P Global Ratings.

China’s growth is squeezed on both sides. Externally, high U.S. tariffs on Chinese goods will limit export competitiveness. At home, the sticky property crisis is weighing on households while “involution”–cut-throat price competition–is squeezing corporate margins in some consumer-facing niches. More policy stimulus may be needed to restore confidence and support economic growth.

Meanwhile, the weak U.S. dollar is giving central banks in Asia-Pacific more wiggle room on monetary policy.

“Financing conditions will likely benefit from the Federal Reserve’s more dovish stance around interest rates,” said Ms. Tan. “The reduction in interest burdens will alleviate cash flow strains, and cheaper mortgages should free up disposable income for consumption. This provides relief for heavily indebted borrowers.”

Still, we view trade-related risks as very high, given the region’s large export-focused manufacturing bases. While a few deals with the U.S. have been struck, providing a bit more visibility, details remain vague. Furthermore, new tariffs could be imposed on the pharmaceutical and semiconductor sectors. Limited clarity around trade policy will prompt manufacturers to slow capital expenditure, constraining growth.

“Markets and credit conditions could turn if trade or other macro risks worsen,” said Ms. Tan.

LIVE WEBINAR AND Q&A

Please join S&P Global Ratings’ analysts and economists to explore our latest research on global credit conditions at our live interactive webinar on Thursday, Oct. 9, where they will cover our updated macroeconomic forecasts, key risks to credit conditions, and credit trends at the industry level for Asia-Pacific.

The event will start at 10:00 a.m. Hong Kong/Singapore time. Those interested can register to join here:

https://event.on24.com/wcc/r/5092104/ABEE2A5C2AF07FC8B9BEE16EDE761269?partnerref=SPGInv

Reports are available to RatingsDirect subscribers at www.capitaliq.com. If you are not a subscriber, you may purchase a copy of a report by emailing research_request@spglobal.com. Ratings information can also be found on S&P Global Ratings’ public website by using the Ratings search box at www.spglobal.com/ratings.