Sri Lanka Money Market Liquidity Surges to 4-Month High 📈

• Liquidity & Rates: Overnight money market liquidity jumped to Rs. 196.08 Bn, the highest level since September 2025. This surplus, parked at the 7.25% SDFR, led to a decline in market rates, with Call Money and Repo rates averaging 7.96% and 7.93% respectively. • Secondary Bond Market: Recovery momentum continued as yields dropped across multiple tenors due to healthy institutional buying. • 2028 Tenors: Traded between 9.10% – 9.15%. • 2029 Tenors: Yields ranged from 9.60% – 9.68%. • 2035 Tenors: Dropped to 11.10% on block buying interest. • Total transacted volume for the sector reached Rs. 17.83 Bn. • Lending Trends: The Average Weighted Prime Lending Rate (AWPR) fell by 21 basis points to 8.98% as of mid-January, reflecting the broader moderation in borrowing costs for the banking & finance sector. • Forex Market: The Sri Lankan Rupee remained broadly steady against the US Dollar, with spot contracts closing at Rs. 309.72/309.77. The daily traded volume was recorded at US$ 59.50 Mn.