ECONOMYNEXT – Sri Lanka stocks surged over one percent shortly after open with the Colombo All Share Index topping 19,000 points, while bond yields were steady as the market awaited direction, dealers said.
Sri Lanka stocks have been going up amid monetary stability amid lower interest rates and taxes on bank savings which is driving money to stocks.
Underlying performance of many companies are also good in absolute terms, with the central bank missing its inflation target and providing stability.
Bond markets were awaiting direction with Trump tariff uncertainty.
Overnight, Trump said he will impose 100 percent, ‘secondary tariffs’ if Russia does not negotiate a peace deal with Ukraine.
Secondary tariffs refers to punitive tariffs proposed on buyers of Russian goods, which is mainly oil. India and China are among top buyers of Russian oil.
Sri Lanka has reduced its tariffs from 44 to 30 and is trying to reduce it further. A reduction to India from 26 to lower levels may affect the competitive position of Sri Lanka.
“There are two types of investors in bonds,” a dealer said. “Some are thinking that 30 percent is positive and others think it is not so good, so there is no direction at the moment.
Sri Lanka’s rupee opened around 300.85/95 to the US dollar in the spot market, stronger from 300.97/301 to the dollar on Monday.
In the secondary market, a bond maturing 15.12.2026 was quoted at 8.05/15 percent, flat from 8.05/15 percent.
A bond maturing on 15.09.2027 was quoted at 8.45/55 percent, flat.
A bond maturing on 15.03.2028 was quoted at 8.75/85 percent from 8.75/80 percent.
A bond maturing on 15.12.2029 was quoted at 9.50/55 marginally up from 9.48/54 percent.
A bond maturing on 01.06.2033 was quoted at 10.65/77 percent, from 10.70/73 percent. (Colombo/Jul15/2025)
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