Sri Lanka rupee closes weaker, bond yields edge up

Monday December 29, 2025 5:05 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 309.85/95 to the US dollar in the spot market Monday, weaker from 309.65/75 on Friday, dealers said, while bond yields closed up.

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

A bond maturing on 15.02.2028 closed at 9.00/06 percent.

A bond maturing on 15.12.2029 closed at 9.70/75 percent.

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

A bond maturing on 01.11.2033 closed at 10.50/60 percent, from 10.45/60 percent. (Colombo/Dec29/2025)

Monday December 29, 2025 6:58 pm

ECONOMYNEXT – Foreign investors sold around 5 million US dollars worth Sri Lanka government securities in the week ending December 24, reversing the inflows in the previous week, Central Bank data showed, as they bet on safe-havens amid speculation of further rate cut by U.S. Federal Reserve rate cut.

It was the 5th week foreigners have sold rupee bonds in the last 17. The foreign holding in government securities fell from near two-year high.

Foreigners sold a net 1545 million rupees (USD 5.06 million at 1$=305 rupees) in the week after buying 2,44 million dollar worth of bonds in the previous week.

The selling comes as global investors shifted their funds into safe-havens like gold after Fed rate cut early this month.

Prices of gold, a top safe haven, surged to a record high last week, buoyed by safe-haven demand and rising expectations of further interest rate cuts by the U.S. Federal Reserve.

The island nation, however, has witnessed inflows to a net 33,855 million rupees (111 million dollars) in the last 17 weeks.

Sri Lanka suffered an outflow of 10.1 billion rupees ($32 million) in the two weeks soon after Donald Trump’s tariff declaration in the first week of April and the rupee has fallen slightly since then.

The island nation has enjoyed a total inflow of around 70.6 billion rupees (around USD 231 million) into rupee bonds since December 26 last year through December 24, the data showed.

Sri Lanka’s deflationary policies have helped to see inflows amid curtailed imports, analysts have said.

The country witnessed foreign outflows worth 48.2 billion rupees in 2024 with 66 percent or 78.1 billion rupees worth outflow from the government securities in the first nine months of last year. (Colombo/December 29/2025)

Monday December 29, 2025 4:07 pm

ECONOMYNEXT – Colombo Dockyard and banking shares pushed the Colombo Stock Exchange (CSE) All Share Price Index to close 0.29 percent higher from Friday while the S&P SL20 was marginally down, data on its site showed.

The broader ASPI)closed 63.49 points up at 22,132.33 while the S&P SL20 marginally declined by 0.06 percent, or 3.74 points to close at 6,037.79 on Monday.

Investor interest in banks and retail shares were seen in the market.

The top contributors to the ASPI were Colombo Dockyard (up 40.25 rupees at 171.75 rupees), HNB (up 2 rupees at 390.25 rupees), Richard Pieris & Company (up 60 cents at 41.20 rupees), DFCC Bank (up 1.25 at 145.50 rupees), and Ceylon Cold Stores (up 2.25 rupees at 109.75 rupees).

Colombo Dockyard was the top most gainer of the session with 585 rupees in turnover.

Market turnover dropped to 3.7 billion rupees from previous session’s 4.1 billion rupees.

Share volume was 108,421,676 with 29,511 trades recorded in the session.

The exchange recorded 200.46 million rupees in net foreign outflow led by John Keells (152.5 million rupees).

Sri Lanka’s Galadari Hotels has entered into an agreement with the Board of Investment of Sri Lanka to extend the project implementation period of its ongoing refurbishment by another 12 months to November 9, 2026. Company’s refurbishment cost has increased to 48.5 million dollars from 33.5 million dollars.

Its stock was trading 10 cents higher at 18.10 rupees.

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In the region, equity markets ended the session lower with investors booking in profit.

“Indian shares started the week on a listless note and extended their losing streak, dragged by losses in Reliance Industries and as thin participation and persistent foreign outflows kept risk appetite in check,” Reuters said.

India’s Nifty 50 was trading 0.38 percent lower at 25,942.10 while the Sensex index was 0.41 percent weaker at 84,695.54.

Japan’s Nikkei 225 index ended a session in the negative territory as profit taking sentiment was seen in the investors with the business year coming to an end, Japan’s Mainichi newspaper said.

Its index closed 0.39 percent lower at 50,550.17.

Meanwhile, Pakistan’s Karachi Stock Exchange 100 index rose 0.85 percent to 173,873.58.

Hong Kong’s Hang Seng index ended 0.71 percent weaker at 25,635.23.

Singapore’s benchmark Straits Times Index (STI) fell 0.05 percent or 2.510 points to close at 4,633.640.

As at 4.00 pm Sri Lankan time, spot gold was trading at 4,478.20 US dollars, down 1.29 percent. (Colombo/Dec29/2025)

Monday December 29, 2025 2:34 pm

ECONOMYNEXT – Apparel exports fell 1.9 percent from a year ago to 367.60 million in November 2025, Sri Lanka’s Joint Apparel Association Forum said, though exports to the US and European Union grew.

“Particularly encouraging is our 13.07% growth in the European Union market, which demonstrates the success of our strategic focus on strengthening relationships with EU buyers and meeting their increasingly stringent sustainability and compliance requirements,” JAAF said.

During the first eleven months of 2025, cumulative exports reached 4,571.99 million dollars, marking a 5.42 percent increase over the same period last year, according to JAAF data.

Apparel exports in November 2024 was 374.94 million dollars.

Exports to the United States was 152.32 million dollars (up 5.79 percent from 143.98 million), European Union (excluding UK) was 119.61 million (up 3.35 percent from 115.73 million), United Kingdom was 43.63 million (down 13.83 percent from 50.63 million).

Exports to other markets was 52.04 million dollars, down 19.44 percent from 64.60 million dollars. (Colombo/Dec2/2025)

Monday December 29, 2025 12:48 pm

ECONOMYNEXT – Sri Lanka’s tourist arrivals exceeded the previous high reached in 2018 with Indian visitors being feted for taking the country over the threshold, but the island nation is on track to fall short of the 3 million target set for 2025.

India remains the leading source market of tourists coming into Sri Lanka, with a flight from Thiruvananthapuram bringing the latest arrivals.

Prof Felix Beslin Pereira, Reena Fernandez, and Ann Cristina Pereira arrived on SriLankan Airlines flight UL 162, were the 2,333,797th and subsequent guests, Sri Lanka Tourism said.

Sri Lanka’s National Peoples Power government had aimed at an ambitious 5 billion US dollar revenue and a 3 million arrival target this year. This was later revised.

Related: Sri Lanka may miss 2025 tourism arrival, earning targets: CT Smith
Sri Lanka optimistic over 3 million tourist target in 2025 after first two months

Sri Lanka tourist arrivals is recovering from a hit by Cyclone Ditwah, which reduced the pace of growth seen in previous months. (Colombo/Dec29/2025)

Monday December 29, 2025 12:17 pm

ECONOMYNEXT – Galadari Hotels has entered into an agreement with the Board of Investment of Sri Lanka to extend the project implementation period of its ongoing refurbishment by another 12 months to November 9, 2026.

A previous Supplementary Agreement with the BOI saw the company increase the refurbishment cost to 48.5 million dollars from 33.5 million dollars.

Galadari Hotels said last month that it hopes to reopen its Colombo city hotel in the second quarter of 2026.

The hotel has been undergoing refurbishment since February 2024.

Last year Galadari Hotels entered into agreements with its parent, Dubai-based Galadari Brothers LLC and Mashreq Bank PSC to get a 73.4 million Dirham loan (20 million dollars) to fund the refurbishment. (Colombo/Dec29/2025)

Monday December 29, 2025 11:14 am

ECONOMYNEXT – New active credit cards in Sri Lanka increased by 16,039 in October this year, the central bank data showed, amid the country’s economic recovery and lower interest rates.

The number of total active credit cards recorded 2,133,417 by end October, compared to 2,117,378 by end September, showing an increase of 0.76 percent in the month.

The active credit cards have risen by 6.2 percent or 124,961 in the first 10 months of this year, the data showed.

Active credit cards in Sri Lanka rose by 4.8 percent or 91,371 in 2024 with the island nation’s economic recovery and strong promotions for credit cards amid falling interest rates.

Analysts have said most banks have tied up with super markets and other vendors to promote credit cards in the falling interest rate regime as the country’s economy has shown more-than-expected recovery.

They said Sri Lanka’s economic recovery and stability have helped customers to use more credit cards than in 2023.

Some analysts said higher interest (penalty) rates on credit cards also had prompted some users to cancel their cards in the last year and the same customers might be actively using the cards now.

Active credit cards, however, fell 1.8 percent or by 39,991 in 2023, after the country declared bankruptcy in 2022 amid unprecedented hike in the Central Bank’s monetary policy rates.

The central bank spiked the interest rates sharply in April 2022 to fight against a hyperinflation. However, the inflation slowed to a deflation September last year before turning to positive in August this year amid the central bank’s reduction of key policy rates eight times since June 2023. (Colombo/December 29/2025)