Sri Lanka yields fall as market awaits cabinet re-shuffle

ECONOMYNEXT – Sri Lanka’s bond yields fell Friday as the ruling coalition said it would go ahead with a co-habitation with a cabinet re-shuffle after a humiliating defeat at local council elections, dealers said.

The coalition administration is set to announce a cabinet re-shuffle.

Markets are waiting to see whether Prime Minister Ranil Wickremesinghe under whose watch an massive securities scam occurred and an alleged cover up also tainted the good governance credentials will retain the central bank under him.

In forex markets the spot US dollar was quoted at 155.00/10 at opening slightly weaker than the yesterday’s close of 154.80/155.10.

Bonds yields started to ease from late Thursday, dealers and on Friday morning bond markets were active dealers said.

On Friday morning a 3-year bond maturing on 01.03.21 quoted at 9.80/90 down from yesterday’s intra-day high of 10.95/05 percent.

An 8-year bond maturing on 01.09.2026 quoted at 10.20/26 down from a 10.35/40 intra-day high yesterday.

A 12-year bond maturing on 15.05.2030 quoted at 10.35/50 down from an intra-day high of 10.50/55 yesterday.