Sri Lanka rupee closes weaker to dollar, bond yields steady

Friday October 24, 2025 5:04 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 303.70/85 to the US dollar Friday, weaker from 303.65/75 the previous day, while bond yields closed broadly steady, dealers said.

A bond maturing on 15.12.2026 closed at 8.25/30 percent, down from 8.25/35 percent.

A bond maturing on 15.09.2027 closed at 8.82/88 percent, up from 8.78/92 percent.

A bond maturing on 15.03.2028 closed at 9.19/25 percent.

A bond maturing on 15.09.2029 closed at 9.65/70 percent.

A bond maturing on 01.07.2030 closed at 9.75/79 percent.

A bond maturing on 15.12.2032 closed at 10.50/65 percent. (Colombo/Oct24/2025)

Friday October 24, 2025 5:21 pm

ECONOMYNEXT – Sri Lanka has unveiled a national strategy which will help the country tap climate financing from official donors and also the private sector to help support over 10 billion dollars for adaptation strategies, officials said.

The National Climate Finance Strategy of Sri Lanka 2025 – 2030, was devised by the External Resources Department of the Finance Ministry with the support of the United Nations and United Kingdom.

“Sri Lanka in particular, given our dependency and exposure to the tourism industry, agricultural industry, marine economy that we have, that we are planning to develop further, the stakes are high unless we act now,” Treasury Secretary Harshana Suriyapperuma said.

“That is why I am pleased to announce the government is committed in that direction to ensure we prepare ourselves well, we coordinate with the partners who have the expertise in this area and invite investors to take part in this journey along with us.”

Sri Lanka’s Nationally Determined Contributions for 2021 to 2030 was estimated at 10.85 billion US dollars. The needs are currently being revised.

At the COP 28, pledges were made to provide developing countries 300 billion US dollars a year by 2035, Azusa Kubota, Resident Representative, UNDP Sri Lanka said. But the funds cannot be tapped without a climate financing strategy.

“It offers a clear, structured framework for mobilising and aligning both domestic and international resources with national climate goals,” Kubota said.

In addition to official development assistance, financing options included public private partnerships, debt for environment swaps, environment social governance bonds Visakha Amarasekere according Additional Director General, Department of External Resources said.

“As a government with limited resources at disposal, we won’t be able to come back alone and channel much needed finances from the other areas which are in equal demand into this particular area,”

“This is why it is important to have a plan to attract other partners for funding, to invite the private sector to take part in this journey for financing, climate related financing activities.”

Sri Lanka had challenges and opportunities that it had to work out and deploy climate financing, United Kingdom High Commissioner for Sri Lanka Andrew Patrick said.

“But without a climate finance strategy of this kind, it is much harder for the government to access those funds,” he said.

Sri Lanka had untapped potential in offshore wind energy, but there were also threats to biodiversity and agriculture, High Commissioner Patrick said. In Jaffna, groundwater is becoming salty.

“There’s an issue of whether people can continue using it” he said. There’s been a survey that we’ve been supporting there. (Colombo/Oct24/2025)

Friday October 24, 2025 4:11 pm

ECONOMYNEXT – The Colombo All Share Price Index (ASPI) declined 0.17 percent on Friday due to selling pressure in the market, brokers said.

“During the midday after the initial hike, selling pressure came into the market,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC said.

“From 16th of September market has been going up except few downs. So we are now potentially starting to see selling pressure in the market.”

The broader ASPI dropped 38.43 points to end at 22,812.52; while the more liquid S&P SL20 moved 0.04 percent, or 2.56 points to close up at 6,266.31

Top contributors to the ASPI were Harischandra Mills (down 1,263.75 rupees at 6,777.75), Sampath Bank (down 1.25 rupees at 148.25), Melstacorp (down 1.75 rupees at 190.25), Senkadagala Finance (down 41.25 rupees at 644.75) and Cargills (Ceylon) (down 12.00 rupees at 812.25).

“Turnover remained healthy,” Mathew said.

Market turnover was 6.2 billion rupees while share volume was 226,704,101.

Elsewhere, stocks traded positively as US-China trade tension is expected to ease. US-China tariff talks are set to held in Malaysia on Friday, Reuters said.

Japan’s Nikkei 225 index rose as the “new Japanese Prime Minister Sanae Takaichi vowed to pursue an aggressive fiscal policy to spur growth, in her first speech since she was elected the country’s leader,” Japan’s The Mainichi newspaper said.

The index ended 1.35 percent stronger at 49,299.65.

Pakistan’s KSE 100 index fell 0.64 percent to 163,531.24 on Friday for the second consecutive sessions, Dawn said..

Meanwhile, India’s Nifty 50 index moved 0.37 percent down to close at 25,795.15, while the BSE Sensex moved 0.41 percent lower to 84,211.88.

Gold prices fell after a nine weeks of trading up due to investors securing “profits and signs of easing trade tensions between the U.S. and China tempered safe-haven demand ahead of a key U.S. inflation report.” Reuters said.

As at 3.40 pm Sri Lankan time, spot gold was trading at 4,082.84 US dollars, down 50.84 US dollars. (Colombo/Oct24/2025)

Friday October 24, 2025 2:21 pm

ECONOMYNEXT – Sri Lanka’s newly appointed Ports & Civil Aviation Minister Anura Karunathilaka, will attend the Indian Maritime Week 2025 scheduled for next week, the Indian High Commission in Colombo said.

It will be Minister Karunathilaka’s first foreign visit as the Ports Minister.

During the visit, the Minister will have a bilateral meeting with his counterpart, Shri Sarbananda Sonowal, Indian Minister of Ports, Shipping and Waterways, the High Commission said in a statement.

The Minister will also join the Ministerial plenary of the India Maritime Week and meet prominent industry leaders on the sidelines of the visit. Key site visits will also be organized during the visit of Minister Karunathilaka.

India Maritime Week 2025, will take place from October 27-31in Mumbai, India, hosted by the Ministry of Ports, Shipping and Waterways, Government of India.

The Minister will visit during the first two days.

The event is expected to serve as a catalyst for strengthening cooperation, driving strategic initiatives, and unlocking new opportunities across the maritime sector.

“The event presents an unparalleled opportunity for coastal nations to enhance their maritime infrastructure, modernize port operations, and attract global investment in shipping and logistics,” the Indian High Commission in Colombo said in a statement.

“The holistic approach of the event aims to promote inclusive growth and sustainable maritime development, fostering strategic partnerships for shared prosperity.”

India’s interest in Sri Lanka’s ports and aviation sectors has grown markedly in recent years, reflecting regional strategic, economic and connectivity ambitions.

On the maritime front, India has extended significant grants and financial support including USD 61.5 million commitment for upgrading the Kankesanthurai Port (KKS) in Northern Sri Lanka.

Analysts say India sees Sri Lanka’s strategic location in the Indian Ocean as key for trans-shipment routes, supply-chain linkages to Tamil Nadu and as a counter-balance to extra-regional maritime influence.

With the Port of Colombo already seeing increasing throughput (7.78 million TEUs in 2024) and joint ventures such as with India’s Adani Ports and Sri Lanka’s port authority backing expansions, India’s engagement is both commercial and strategic.

India’s port and aviation interests in Sri Lanka serve multiple purposes including securing supply-chain and energy-logistics nodes, strengthening friendly access in the Indian Ocean region amid Chinese infrastructure moves, and expanding trade-tourism corridors between South India and Sri Lanka.

For Sri Lanka, such Indian interest offers investment, connectivity and infrastructure support, though critics have raised questions about strategic autonomy, debt terms and regional alignments. (Colombo/October 24/2025)