The Central Bank of Sri Lanka (CBSL) absorbed US$579 million from the domestic foreign exchange market in August 2026, based on value-date transactions, as the country continued to strengthen its foreign exchange position.

The net absorption reflects the Central Bank’s purchases of foreign currency from the domestic market and comes against a backdrop of improving official reserve levels. Meanwhile, gross official reserves were provisionally estimated at US$6.6 billion at end-July 2026, including proceeds from the People’s Bank of China (PBOC) swap arrangement, according to the weekly economic indicators of the Central Bank.

Meanwhile, outstanding central government debt stood at Rs.30.53 trillion at end-April 2026. Of this, domestic debt amounted to Rs.18.85 trillion, while the rupee value of outstanding foreign debt stood at Rs.11.68 trillion.

In the government securities market, Treasury Bill yields were broadly stable in the primary market during the past week, apart from a marginal decline in 182-day Treasury Bill yields. Both Treasury Bill and Treasury Bond yields recorded marginal declines in the secondary market.

The rupee value of Treasury Bills and Treasury Bonds held by foreign investors remained broadly stable compared with the previous week, while the latest Treasury Bill auction recorded an oversubscription rate of around 2.5 times, the CBSL added.