Sri Lanka sold Rs. 120 billion in treasury bonds across three maturities, with the full amount offered taken up at each tenor, according to Public Debt Management Office data reported by Hiru News.
| Maturity | Offered | Average yield |
|---|---|---|
| August 2030 | Rs. 70bn | 10.83% |
| October 2034 | Rs. 50bn | 11.96% |
| July 2037 | Rs. 30bn | 12.08% |
All three bonds remain available on tap, meaning the Treasury can continue selling them at the accepted yields outside the auction window.
Reading the curve
The yields describe a normally shaped curve, rising with tenor — roughly 125 basis points between the four-year and the eight-year paper, and a further 12 basis points out to eleven years. The narrow gap between the 2034 and 2037 bonds suggests investors are drawing little additional risk distinction at the long end.
A full take-up across all three maturities points to adequate demand at the offered levels, which matters given the government’s financing position. The budget swung to a Rs. 119.23 billion deficit in July, while net credit to the government from the banking system contracted by Rs. 165.9 billion in the same month — a combination that points to the securities market carrying more of the funding load.
Not reported
Hiru’s account is drawn directly from the PDMO release and is brief. It does not give the auction date, the total value of bids received, or the bid-to-cover ratio at any tenor — without which the “fully sold” result cannot be judged as strong or merely adequate. It gives no comparison with the yields accepted at the previous auction, does not identify the settlement date, and does not state how much of the government’s 2026 borrowing programme has now been raised.
No other verified newsroom had filed on the auction result at the time of writing. The Daily FT’s front page carried the Central Bank’s fiscal, reserves and private credit releases the same morning but not this one; Ada Derana remains unreachable behind a CloudFront block.
