Festive fizz fades, market stays quiet

By First Capital Research

The secondary market remained subdued in the aftermath of the holiday season, with limited activities observed across the yield curve. 

As a result, the yield curve remained largely unchanged. Amongst the traded maturities, 01.07.2028 changed hands at yields ranging from 10.14 percent to 10.11 percent.

Notably, the Central Bank released the PMI manufacturing and services index results for March 2025, indicating a strong increase in both manufacturing and services activities. 

The PMI-manufacturing rose to 63.9 in March, up from 56.8 in February, marking the highest reading in four years. 

Meanwhile, the PMI services climbed to 69.8, compared to 56.5 in the previous month, reflecting a robust uptick in service sector activity.

In the forex market, the Sri Lankan rupee appears to have weakened against the greenback, closing at Rs.299.1/US dollar, compared to the previous day’s rate of Rs.298.6/US dollar. 

Meanwhile, overnight liquidity in the banking system registered an uptick, standing at Rs.81.5 billion, from Rs.57.3 billion in the prior session.