Sri Lanka rupee closes flat, bond yields steady

Monday April 20, 2026 5:54 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 316.30/70 to the US dollar in the spot market Monday, flat from 316.50/70 the previous close, dealers said, while bond yields were steady.

A bond maturing on 15.12.2026 closed at 8.45/55 percent.

A bond maturing on 15.02.2028 closed at 9.35/55 percent.

A bond maturing on 15.09.2029 closed at 9.95/10.00 percent.

A bond maturing on 01.07.2030 closed at 10.15/20 percent, down from 10.12/17 percent.

A bond maturing on 15.12.2032 closed at 10.70/90 percent.

A bond maturing on 01.06.2033 closed at 10.95/11.05 percent, up from 10.95/11.00 percent.

A bond maturing on 15.06.2034 closed at 11.08/17 percent, up from 11.10/17 percent. (Colombo/Apr20/2026)

Monday April 20, 2026 6:01 pm

ECONOMYNEXT – Sri Lanka’s President Anura Kumara Dissanayake has appointed Anura Karunathilake as the new Minister of Energy after former minister Punya Kumara Jayakody resigned amidst allegations of a coal scam.

Karunathilaka was sworn in as the Minister of Energy before the President at the Presidential Secretariat this afternoon (20), the President’s Media Division said.

In addition to his position as Minister of Energy, he also serves as the Minister of Ports and Civil Aviation. (Colombo/Apr20/20)

Monday April 20, 2026 5:13 pm

ECONOMYNEXT – Three new ambassadors, two high commissioners, and an Apostolic Nuncio-designate of the Holy See to Sri Lanka have presented their credentials to President Anura Dissanayake.

The new envoys are:

• Vincent Sumale, High Commissioner-designate of Papua New Guinea (Based in New Delhi)
• Abdullahi Mohammed Odowa, Ambassador-designate of Somalia (Based in New Delhi)
• Christian Biever, Ambassador-designate of Luxembourg (Based in New Delhi)
• Monsignor Andrzej Józwowicz, Apostolic Nuncio-designate of the Holy See
• Major General (Retd) Nayyar Naseer, High Commissioner-designate of Pakistan
• Saleh Mubarak Al-Sarawi, Ambassador-designate of Kuwait

Following the presentation of credentials, the President engaged in a cordial discussion with them, his media division said.

Minister of Foreign Affairs Vijitha Herath was also present. (Colombo/Apr20/2026)

Monday April 20, 2026 4:24 pm

ECONOMYNEXT – The Colombo Stock Exchange closed down on Monday, data from CSE showed.

This may be a “one off situation, as there are no underlying issues seen,” Raynal Wickremeratne, Head of Strategy, Softlogic Stockbrokers said.

“We may see a correction tomorrow.”

The All Share Price Index was down 0.89 percent, or 203.26 points at 22,570.03.

The S&P SL20 was down 0.66 percent, or 41.15 points at 6,222.79.

Asiri Hospital Holdings (up 12.37 percent at 41.80 rupees), Melstacorp (up 0.56 percent at 180.75 rupees), and Carson Cumberbatch (up 1.90 percent at 816.25 rupees) were top positive contributors to the ASPI.

RIL Holdings (down 5.92 percent at 28.60 rupees), CT Holdings (down 3.73 percent at 581.50 rupees), Dialog Axiata (down 2.03 percent at 33.80 rupees) were top negative contributors.

Turnover was 4.11 billion rupees. Capital goods contributed 786 million to takeover, while diversified financials contributed 710.1 million rupees.

There was a net foreign inflow of 90,956,509 rupees and an outflow of 169,492,492 rupees.

“Most global markets have been positive recently,” Wickremeratne added.

The US’ DOW Jones 30 index was up 1.79 percent at 49,447.43 points.

Hong Kong’s Hang Seng was up 0.77 percent at 26,361.07.

Meanwhile, India’s Nifty50 index was flat at 24,332.85. (Colombo/April20/2026)

Monday April 20, 2026 3:30 pm

ECONOMYNEXT – Sri Lanka’s central bank and China’s central bank have discussed promoting renminbi‑denominated settlements between the two countries on the sidelines of the IMF-World Bank Spring Meetings 2026 in Washington.

CBSL governor Nandalal Weerasinghe and People’s Bank of China governor Pan Gongsheng discussed escalated geopolitical tensions and the continued engagement between the two central banks, CBSL said.

“The discussion also underscored the potential benefits of promoting renminbi‑denominated settlements for trade between China and Sri Lanka.”

Weerasinghe briefed Gongsheng on recent economic developments in Sri Lanka, including emerging challenges stemming from heightened tensions in West Asia.

China has been pursuing the internationalization of the renminbi (RMB, also called the Chinese yuan or CNY) as a long-term strategy to reduce its dependence on the US dollar, enhance global trade efficiency for Chinese firms, and elevate Beijing’s financial influence.

Beijing has signed bilateral local-currency swap lines with over 40 central banks totaling over ¥4 trillion, promoted RMB-denominated oil and commodity contracts on the Shanghai International Energy Exchange, and encouraged BRICS and Belt-and-Road partner countries to invoice trade and hold reserves in RMB.

Related story
Chinese envoy backs diversifying Sri Lanka reserves, reducing FX risks from dollar usage

The Colombo Port City will be a ‘dollarized’ special economic zone will not have a money monopoly but where products of many central banks including that of the Fed (US dollar), ECB (the Euro) and Peoples Bank of China (Renminbi) will compete for acceptance.

Weerasinghe also met with the governor of the Reserve Bank of India Sanjay Malhotra, on the sidelines of the IMF–World Bank Spring Meetings, and discussed efforts to promote Indian rupee based settlement for trade and tourism.(Colombo/Apr20/2026)

ADB President Masato Kanda speaks at the World Bank-IMF Joint Ministerial Development Committee.

Monday April 20, 2026 2:24 pm

ECONOMYNEXT — Asian Development Bank (ADB) President Masato Kanda has called for collective resilience through regional cooperation at a time of global economic uncertainty.

“The Middle East conflict is a hit to the global economic engine, and Asia and the Pacific is the region most severely affected,” Kanda told several meetings in Washington.

“The priority is clear: keep economies running, strengthen domestic economies, and support regional cooperation to build collective resilience. ADB stands ready to support.”

Kanda led discussions on strengthening collaboration for resilience at the Multilateral Development Bank (MDB) Heads meeting where discussion focused on fostering private sector development, collaborating on critical minerals and water security, and improving effectiveness through mutual reliance and a common Value for Money procurement framework, ADB said.

At the World Bank-IMF Joint Ministerial Development Committee, Kanda focused on navigating global uncertainty and deploying financial support to manage economic fallout.

He spoke on how geopolitical shocks impact Asia and the Pacific through rising fuel, freight, and finance costs, at the Council on Foreign Relations, adding that ADB is acting with speed and scale to stabilize economies via fast-disbursing budget support and expanded trade finance. (Colombo/Apr20/2026)

Monday April 20, 2026 11:38 am

ECONOMYNEXT – The risk outlook for global credit has risen “substantially” since the start of the year, Fitch Ratings has said, with the US war on Iran posing a major risk to the ratings agency’s base-case forecasts and assumptions with a “clear adverse risk scenario involving a sustained global oil and gas supply shock”.

“Even if the conflict ends sustainably without re-escalating and the Strait of Hormuz fully reopens to traffic, the risk environment has already changed,” Fitch said.

“The war has raised Fitch’s 2026 base-case global oil and European gas price assumptions. Commodity prices and investments in the Gulf region could carry a long-term geopolitical risk premium, depending on the outcome of a diplomatic settlement.

“U.S.-European disagreements over the war could also undermine transatlantic relations and the stability of the NATO alliance.”

“Other significant risks to global credit beyond the war persist. Geopolitics heightened investor risk aversion in March, but other adverse catalysts could add pressure to funding and liquidity conditions. These include AI-related disruptions, higher sovereign bond yields, a stronger U.S. dollar and inflationary pressures driving shifts in rate expectations.”

Meanwhile, Fitch also said Sri Lanka’s ‘CCC+’ rating is constrained by elevated general government indebtedness and a high interest/revenue ratio even after the sovereign’s 2024 debt restructuring.

“Prolonged energy supply and price disruptions could pose downside risks to credit metrics, but the country is in a better position to manage pressures than in the 2022 energy shock,” Fitch said announcing its rating report update on Sri Lanka.

Sustained reform momentum is supporting a solid economic recovery, low inflation, a substantial positive fiscal adjustment, and improvements in external finances, it added. (Colombo/Apr20/2026)