📈 Foreign Holdings of Rupee Treasuries Hit 30-Month High

Foreign investment in Sri Lanka’s government securities rose for the third consecutive week, with a net inflow of Rs. 9.21 Bn pushing total holdings above the Rs. 160 Bn mark (specifically Rs. 163.23 Bn). This reflects a 6% WoW increase, marking the highest level since August 2023. • Liquidity & Money Market: Inter-bank liquidity surplus hit a 11-year high of Rs. 299.68 Bn. This excess cash drove weighted average Call Money and Repo rates down to 7.66% and 7.70% respectively. • Primary Auctions: Treasury Bill yields fell for the 4th straight week. The 91-day rate dropped to 7.72% (-8 bps), while the 182-day fell to 8.07% (-10 bps). A separate Treasury Bond auction raised the full Rs. 51 Bn offered, with the new 2036 maturity drawing strong interest at 10.73%. • Secondary Market: Markets remained bullish as yields trended lower across the curve. The "belly-to-long" end (2029–2037 maturities) saw the most significant declines due to high investor demand and surplus liquidity. • Currency Movement: The USD/LKR spot exchange rate closed the week slightly stronger at Rs. 309.20/25, compared to the previous week’s close of Rs. 309.37/42, on average daily volumes of US$ 119.15 Mn.