Sri Lanka rupee closes weaker, bond yields steady

Tuesday December 30, 2025 8:48 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 310.00/310.20 to the US dollar in the spot market Tuesday, weaker from 309.85/95 on Monday, dealers said, while bond yields closed broadly steady.

Sri Lanka’s rupee depreciated in 2025 amid record current account surpluses and improvement in budget, denying the usual scapegoats macro-economists point to after engaging in monetary debasement.

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A bond maturing on 15.12.2026 closed flat at 8.40/70 percent.

A bond maturing on 15.02.2028 closed at 9.00/10 percent, up from 9.00/06 percent.

A bond maturing on 01.07.2028 was quoted flat at 9.10/20 percent.

A bond maturing on 15.10.2028 was quoted flat at 9.15/25 percent.

A bond maturing on 15.09.2029 was quoted at 9.65/75 percent, up from 9.65/70 percent.

A bond maturing on 15.12.2029 closed at 9.70/80 percent, up from 9.70/75 percent.

A bond maturing on 01.07.2030 was quoted at 9.85/90 percent, up from 9.75/80 percent.

A bond maturing on 15.03.2031 was quoted at 10.00/1010 percent, up from 9.95/10.05 percent.

A bond maturing on 01.10.2032 closed at 10.32/40 percent, up from 10.30/35 percent.

A bond maturing on 15.12.2032 was quoted flat at 10.30/40 percent.

A bond maturing on 01.11.2033 closed flat at 10.50/60 percent.

At an auction of Rs 55,000 million Treasury Bonds on Tuesday, 43.18 billion rupees in 2030 and 2037 bonds were sold.

Sri Lanka sells Rs43.18bn in 2030 and 2037 bonds

An auction of Rs 120,000 million Treasury bills is due on December 31. (Colombo/Dec30/2025)

Tuesday December 30, 2025 8:50 pm

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved the installation of four automatic passenger clearance gates at the departure terminal of Bandaranaike International Airport (BIA) in 2026, aiming to enhance efficiency and match facilities in the terminal.

The decision follows the successful completion of four similar gates in the arrival terminal under a Japanese-funded project.

Initiated in 2023 with a 1,170 million yen (approximately US$8 million) grant from Japan through the International Organization for Migration (IOM), the “Preparation for Border Infectious Disease Control in Southeast Asian Countries” project upgraded BIA to international standards for health security and passenger processing.

The Japanese grant is expected to equip BIA with advanced baggage scanners, full-body scanners, automated border control (ABC) gates with facial recognition, and e-passport scanners, alongside renovations like touchless washrooms.

The automatic arrival gates, part of this initiative, are set for operational use soon, enabling faster, contactless immigration for eligible passengers.

The new departure gates will mirror this system, allowing “more efficient and correct” clearance, the Cabinet approval statement said.

This expansion aligns with BIA’s broader modernization, including self-check-in kiosks introduced in 2023 to handle growing traffic and post-COVID health protocols. (Colombo/December 30/2025)

Tuesday December 30, 2025 6:09 pm

ECONOMYNEXT – Sri Lanka’s cabinet has approved allocating 5 billion rupees to give recovery loans to Cyclone hit businesses at 3 percent interest, Minister Nalinda Jayatissa said.

Micro businesses will get up to 250,000, small businesses one million and up to 25 billion rupees for larger businesses.

The loans will be provided by commercial banks.

The loans will have a three year payback and 6 months grace period. (Colombo/Dec30/2025)

Tuesday December 30, 2025 6:08 pm

ECONOMYNEXT – Colombo Dockyard and banking shares continued to push the Colombo Stock Exchange (CSE) All Share Price Index on Tuesday to close 1.49 percent higher, data on its site showed.

The broader ASPI ended 313.56 points up at 22,445.89 while the S&P SL20 closed 1.22 percent, or 73.56 points higher at 6,111.35.

Banks and retail shares continued to attract investor interest.

The top contributors to the ASPI were Colombo Dockyard (up 21 rupees at 192.75 rupees), Melstacorp (up 7.50 rupees at 174.00 rupees), HNB (up 8.75 rupees at 399 rupees), Richard Pieris & Company (up 2.10 at 43.30 rupees), and Commercial Bank (up 2.50 rupees at 200.75 rupees).

Market turnover dropped to 3.4 billion rupees from the previous session’s 3.7 billion rupees.

Share volume was 101,367,017 with 29,142 trades recorded in the session.

Crossings were seen in Commercial Bank (401.77 million rupees) and John Keells Holdings, Hayleys, RIL Property and Access Engineering.

Construction and related shares also ended the session higher.

The exchange recorded 36.73 million rupees in net foreign outflow led by John Keells (50 million rupees) for the second consecutive session.

Sri Lanka’s Amana Takaful said it was converting 43 million debentures to ordinary voting shares at a conversion price of 4.50 rupees.

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In the region, most of the equity markets ended the session higher as the new year neared.

Japan’s Nikkei 225 index has recorded the highest year end closure by climbing 26 percent in 2025, Japan’s Mainichi newspaper said.

Its index closed 0.37 percent higher at 50,339.48 “helped by an artificial intelligence boom and expectations for economic measures under Prime Minister Sanae Takaichi,” Mainichi newspaper said.

Pakistan’s Karachi Stock Exchange 100 index rose 0.33 percent to 174,472.79 continuing its positive momentum after hitting a fresh record high.

Hong Kong’s Hang Seng index ended 0.86 percent stronger at 25,854.60.

Singapore’s benchmark Straits Times Index (STI) rose 0.47 percent or 21.740 points to close at 4,655.380 after closing down on Monday.

Meanwhile, Indian markets slipped “with sentiment muted by foreign fund outflows in thin year-end trade,” Reuters said.

India’s Nifty 50 was trading 0.013 percent lower at 25,938.85, while the Sensex index was 0.024 percent weaker at 84,675.08.

As at 4.30 pm Sri Lankan time, spot gold was trading at 4,391.76 US dollars, up 1.47 percent. (Colombo/Dec30/2025)

Tuesday December 30, 2025 4:41 pm

ECONOMYNEXT – Sri Lanka has sold 43.18 billion rupees in 2030 and 2037 bonds, after offering 50 billion, data from the public debt management office showed.

18.18 billion rupees of 01 July 2030 (LKB00530G018) bonds, of an offered 30 billion, were sold at an average yield of 9.80 percent.

All 25 billion rupees of 01 July 2037 (LKB01237G019) bonds were sold at an average yield of 10.90 percent.

The 2030 bond is available on tap. (Colombo/Dec30/2025)

Tuesday December 30, 2025 4:17 pm

ECONOMYNEXT – Sri Lanka will sign an agreement with Israel to send more workers to the state which international bodies have said is committing a genocide against Palestinians and is building settlements illegal under international law.

“The State of Israel has officially expressed its willingness to recruit Sri Lankan workers for employment in the commercial and service sectors in Israel,” minister Nalinda Jayatissa told reporters announcing cabinet decisions.

The cabinet had approved the proposal by the Minister of Foreign Affairs, Foreign Employment and Tourism to sign Protocol ‘G’ under the agreement already signed between the two parties to enable the employment of Sri Lankan workers in the said sector, he said.

Previous agreements between Sri Lanka and Israel provided temporary employment for Sri Lankan workers in the domestic care, agriculture, construction, hotels, housekeeping and cleaning services, manufacturing and catering.

These were implemented under Protocols A, B, C, D, E and F, according to a cabinet statement.

Israel is facing a significant and worsening labor shortage across many sectors, as it increases its war effort in the region, and since it banned giving work permits to Palestinians after October 7, 2023.

Lawmaker Rauff Hakeem had previously pointed out that “Sending our workers to a country that is committing war crimes is like sending workers to nazi Germany, when Hitler was killing Jews, and there were labour shortages”. (Colombo/Dec30/2025)

Tuesday December 30, 2025 3:47 pm

ECONOMYNEXT – Sri Lanka’s cabinet of ministers have approved a proposal to liquidate Sahasya Investment Compnay, a state owned enterprise set up to manage expressways, and transfer its functions and properties to the Road Development Authority, minister Nalinda Jayatissa said.

Sahasya was set up with the objectives of maintaining the existing expressway system, determining strategic methods for their further development and using modern technologies to minimize costs.

The daily operations and management of the expressways were transferred to Sahasya Investment Company on 25-03-2024 through a management agreement.

“However, the operations of Sahasya Investment Company have not been implemented so far, and no activities consistent with its objectives have been carried out since the date of incorporation of the company,” Jayatissa told reporters.

The RDA has been entrusted with the planning, design, construction and maintenance of national roads and expressways by the Road Development Authority Act No. 73 of 1981, he said, and possesses the technical expertise, institutional capacity and long-term asset management vision required to manage those assets.

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“Taking those matters into consideration, the cabinet approved the proposal to liquidate Sahasya Investment Company and to manage the expressway network, its associated lands and other related functions through a separate operating unit under the Road Development Authority.” (Colombo/Dec30/2025)