Rupee Treasury Holdings Surge to Two-Year High 📈

• Overall Figures: Foreign holdings in rupee-denominated Government Securities saw a net inflow of Rs. 6.63 Bn, bringing the total to Rs. 146.56 Bn—the highest level since November 2023. • Liquidity & Rates: Market liquidity reached a five-year high of Rs. 233.13 Bn. This surplus pushed inter-bank call money and repo rates down to 7.70% and 7.72% respectively, compared to December highs of over 8%. • Market Performance: The Secondary Bond market saw robust activity with yields trending lower, particularly in the 2029–2037 segment. Treasury Bill auctions were fully subscribed, raising Rs. 137.50 Bn amid strong demand. • Key Indicators: • Inflation: January CCPI recorded at +2.3%, remaining well below the Central Bank’s 5.0% target. • Currency: The Sri Lankan Rupee (LKR) appreciated against the US Dollar, closing the week at Rs. 309.25/35 vs. the previous week’s Rs. 309.76. • Bond Auctions: Successfully raised Rs. 179.06 Bn (87.35% of offer), with weighted averages aligning with or falling below market rates.