Sri Lankan rupee weakens to 330.80/90 against US dollar

The rupee weakened further in spot market transactions, with dealers quoting the currency at 330.80 to 330.90 against the US dollar. The depreciation underscores persistent foreign exchange pressures facing the island's economy as it navigates the aftermath of its recent financial crisis.

Concurrently, yields on Sri Lankan government bonds moved upward during the afternoon session, signalling investor concerns over domestic debt dynamics. The yield increases reflect cautious sentiment in fixed-income markets as market participants reassess economic fundamentals and central bank policy directions.

The currency movement comes amid Sri Lanka's ongoing efforts to stabilize its external position and rebuild foreign reserves following the severe balance-of-payments crisis that struck the country in 2022. Exchange rate developments remain closely monitored by policymakers as the nation pursues its International Monetary Fund-backed reform programme.

The rupee's continued weakness reflects broader challenges in Sri Lanka's macroeconomic environment, though authorities have implemented multiple interventions aimed at stabilizing the currency market and restoring financial sector stability.