Sri Lanka rupee marginally stronger, bond yields drop

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 309.05/15 to the US dollar in the spot market Friday, recovering slightly from 308.15/40 the previous day, dealers said, while bond yields dropped significantly. The rupee has fallen from 293.10/30 to 308.15/40 over 2025 amid record current account deficits, sharply reduced budget deficits as people paid more taxes. Macro-economists had previously blamed currency depreciation on current account or trade deficit, the budget deficit and sometimes ‘exogenous shocks’ instead of the flawed operating framework of the central bank. Analysts have pointed out that the central bank in 2025 depreciated the currency through purchase…

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