Sri Lanka rupee depreciates further, bond yields edge up on shorter tenors

Wednesday March 4, 2026 5:02 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 310.30/60 to the US dollar in the spot market Wednesday, weaker from 310.10/30 Tuesday, dealers said, while bond yields edged up slightly on the short end and were broadly steady in the rest of the yield curve.

A bond maturing on 15.12.2026 closed at 8.20/30 percent, down from 8.20/35 percent.

A bond maturing on 15.09.2027 closed flat at 8.45/55 percent.

A bond maturing on 01.03.2028 closed at 9.10/18 percent.

A bond maturing on 15.12.2029 closed at 9.57/60 percent, up from 9.55/60 percent.

A bond maturing on 15.03.2031 closed at 9.80/87 percent.

A bond maturing on 01.10.2032 closed at 10.20/25 percent, up from 10.18/22 percent.

A bond maturing on 01.06.2033 closed at 10.45/52 percent, up from 10.45/50 percent.

A bond maturing on 15.06.2034 closed at 10.65/75 percent. (Colombo/Mar4/2026)

Wednesday March 4, 2026 7:41 pm

ECONOMYNEXT – Ovwr 100 Iranians are feared to be killed in a ship disaster off Sri Lanka’s Southern town of Galle, while the United States claimed its submarine sank Tehran’s naval ship.

U.S. Secretary of Defense Pete Hegseth said a U.S. submarine sank the Iranian warship IRIS Dena off the coast of Sri Lanka, a move that has brought the war into Indian Ocean.

Sources in the National Hospital in Galle say at least 87 body had been recovered so far while Navy Spokesman said 32 were rescued in the operation at 40 nautical miles south to Galle.

At least 27 bodies, covered in white plastic bags, were brought to the hospital mortuary in a Navy freezer lorry, an EvonomyNext reporter witnessed. .

Foreign Minister Vijitha Herath told the parliament early in the day that the country’s navy received a distress call at 5.08 am early in the morning and Sri Lanka sent two rescuer missions within hours.

“We intervened and able to rescue 30 people,” Herath told the parliament.

He said the incident took place outside the Sri Lankan waters.

Sri Lankan officials said they were unaware of any attack on the Iran ship. (Galle/March 04/2026)

Wednesday March 4, 2026 3:54 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Wednesday, recovering from Tuesday’s largest single-day point drop amidst the war in the Middle East.

The ASPI closed up 0.60 percent, or 134.03, at 22,577.41.

The S&P SL20 closed up 0.70 percent, or 44.01 points at 6,357.66.

Sampath Bank (up 1.95 percent at Rs.157.00), Commercial Bank (up 1.67 percent at Rs.213.50), C T Holdings (up 4.33 percent at Rs.626.25) were top positive contributors to the ASPI.

Senkadagala Finance (down 24.98 percent at Rs.563.00) was the top negative contributor to the ASPI.

The market turnover was 4.68 billion rupees. Most of this came from capital goods (1.51 billion rupees).

Senkadagala Finance listed 4,313,992 ordinary voting shares. The stock closed down 24.98 percent at 626.25 rupees. (Colombo/March4//2026)

Wednesday March 4, 2026 3:41 pm

ECONOMYNEXT – Sri Lanka’s Treasury bill yields were mostly flat across maturities at Wednesday’s auction, data from the Public Debt Management Office showed, with 47.83 billion rupees sold of an offered 120 billion.

The 3-month bill was flat at 7.63, with all 20 billion rupees of bills offered and 20.71 rupees bills sold.

The 6-month bill was flat at 7.92 percent, with all 70 billion rupees of bills offered and 19.29 rupees bills sold.

The 12-month yield fell 1 basis point to 8.23 percent, with 35 billion rupees offered and 7.82 billion rupees sold.

The 6-month and 9-month bills are available on tap. (Colombo/Mar4/2026)

Wednesday March 4, 2026 3:28 pm

ECONOMYNEXT – Sri Lanka will set up a committee appointed by the Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation which will decide on maize prices in the country, minister Nalinda Jayatissa said.

“Due to various problems that have arisen in the past, it has been decided that a formal methodology should be developed for the import of maize,” Jayatissa told reporters.

Cabinet had approved a proposal for the committee to be set up.

“It was decided to import maize required for the production of animal feed by animal feed producers and animal feed importers registered with the Department of Animal Production and Health, under the supervision of the Department of Animal Production and Health and the Department of Agriculture, when the local maize harvest is not available in the market so as not to harm local maize farmers.”

Sri Lanka does not produce sufficient maize locally, and imports maize for animal feed and human consumption. (Colombo/Mar4/2026)

Wednesday March 4, 2026 2:29 pm

ECONOMYNEXT – Sri Lanka’s cabinet of ministers have approved a proposal to remove cess and non-tariff barriers imposed on 2,634 imported goods in stages, minister Nalinda Jayatissa said.

“We will remove the cess on around 2,634 goods in stages through to 2029, while protecting domestic industries,” Jayatissa told reporters.

The phased approach will see the para tariffs removed from 25 percent, to 50 percent, upto 100 percent, he said.

The cess is planned to be removed in phases with the aim of ensuring a level playing field for all stakeholders and in line with internationally accepted practices and World Trade Organization policies, Jayatissa said.

Sri Lanka’s para tariffs have been a contentious issue, and successive governments have given undertakings that they will be eliminated.

The imposition and expansion of non-customs duties including cess and other value added taxes to generate revenue have increased the production costs of export-oriented industries due to high input costs. (Colombo/Mar4/2026)

Wednesday March 4, 2026 11:32 am

ECONOMYNEXT – The Colombo Stock Exchange trended up during midday trading on Wednesday after opening down, CSE data showed.

The All Share Price Index was up 1.41 percent, or 317.14 points at 22,760.52.

The S&P SL20 was up 1.29 percent, or 81.32 points at 6,394.97.

The ASPI saw its largest drop in terms of points on Tuesday amidst the Middle East conflict.

Commercial Bank (up 2.74 percent at Rs.215.75), Sampath Bank (up 2.60 percent at Rs.158.00), Hayleys (up 2.82 percent at Rs. 236.75) were the top positive contributors
during the midday trade.

Market turnover was 2.19 billion rupees.

Colombo Dockyard reported a 1.93 billion rupee loss for the December 2025 quarter. The stock was up 0.53 percent at 142.00 rupees. (Colombo/March4/2026)