Dull market sentiment leads to quiet week start

By First Capital Research

Following last week’s mixed sentiment, the secondary market yield curve experienced low activity and volumes, with market sentiment turning subdued at the start of the week. 

As a result, there was no change in the yield curve.

The number of trades in the market was minimal, with the 15.01.2028 bond trading at a rate of 9.00 percent and the 01.07.2030 maturity trading between the rates pf 9.70 percent and 9.71 percent.

On the external front, the Sri Lankan rupee depreciated marginally against the US dollar, closing at Rs.302.6/US dollar, compared to Rs.302.5/US dollar recorded the previous day. Overnight liquidity in the banking system expanded to Rs.170.9 billion, from Rs.150.0 billion recorded the previous day. 

Furthermore, the average weighted prime lending rate (AWPR) for the week ending September 26, 2025 declined by 2bps to 8.05 percent, compared to the previous week.