Sri Lanka’s rupee snapped back sharply on Friday, closing the spot market at Rs. 329.00/331.00 to the US dollar after trading at Rs. 342.00/350.00 the previous day, EconomyNext reported. Bond yields recovered across the curve as exporters made strong forward dollar sales, reportedly fearing the Central Bank would impose new surrender rules if depreciation continued.

The telegraphic transfer rate at commercial banks also collapsed during the day. By afternoon, Seylan Bank, NDB, People’s Bank, Commercial Bank and Sampath Bank had all cut their dollar selling rate to roughly Rs. 340–347, down from Rs. 351–354.75 that morning, Newswire reported. People’s Bank’s selling rate fell from Rs. 354.24 to Rs. 340.11 in a single session.

By the close of interbank trading the retail TT selling rate had fallen below the Rs. 340 mark at several major banks, Ada Derana reported. Bank of Ceylon quoted Rs. 336.50, Nations Trust Bank Rs. 336.49, People’s Bank Rs. 338.86, Hatton National Bank Rs. 340.00, Sampath Bank Rs. 340.50 and Commercial Bank Rs. 342.50 — a sharp reversal from the previous day’s peak of Rs. 354.

Deputy Finance Minister Anil Jayantha Fernando said the inter-bank middle rate had dropped to Rs. 330 from Rs. 350 the previous day, with bidding at Rs. 327 and the expected selling rate near Rs. 332. He called it “good news for the public” and warned that misinformation predicting a slide to Rs. 360 or Rs. 400 had been driven by political or commercial interest.

EconomyNext said the interbank market — which had been described as “frozen” by SJB MP Harsha de Silva on Wednesday after CBSL pulled back from active dollar selling — restarted only when exporters were spooked into forward sales. Critics quoted in the report said the central bank “buys dollars heavily when going is good… but suddenly stops selling whenever there is a crisis, decimating confidence.”

The recovery follows CBSL’s Wednesday meeting with forex dealers, President Dissanayake’s “2022 will not happen again” assurance citing $7bn in reserves, and ahead of the IMF Executive Board’s May 27 review.

Bond yields recovered across maturities: the 2027 paper closed at 9.30/60 percent (from 9.20/70), 2029 at 11.35/45 (from 11.50/70), and 2032 at 11.25/30 (from 11.45/55).

Sources: EconomyNext, Newswire (banks), Newswire (inter-bank Rs. 330), Ada Derana.