Sri Lanka has announced multiple policy initiatives this week, including regulatory frameworks for cryptocurrency platforms and infrastructure development projects, while the rupee held steady and markets showed modest gains.

Sri Lanka's government has approved several significant policy measures designed to strengthen regulatory oversight and accelerate infrastructure development. The Cabinet greenlighted a proposal to designate the Securities and Exchange Commission as the official regulator for virtual assets and cryptocurrency service providers, bringing previously unregulated offshore trading platforms under formal supervision. This move aims to ensure compliance with anti-money laundering and know-your-customer requirements.

On the infrastructure front, the government approved approximately 15 billion rupees in contracts for the first phase of the Ruwanpura Expressway Project, which will connect Kahathuduwa to Ingiriya and link with the existing Southern Expressway. Additionally, a new state-owned company will be established to manage and operate the country's multimodal transport hubs, currently operating in Makumbura and Kadawatha with two more under construction in Anuradhapura and Kandy.

On financial markets, Sri Lanka's rupee remained relatively stable, closing at 336.10/20 to the US dollar on Tuesday, marginally stronger than the previous day's 336.20/35. Bond yields showed mixed movements across different tenors, with some shorter-dated bonds declining while longer-dated securities edged higher. Treasury bill yields fell at Tuesday's auction, with the three-month bill declining 9 basis points to 9.86 percent.

International recognition came as the Institute of International Finance named Sri Lanka among top global gainers in investor relations and debt transparency practices. The country's Investor Relations Country Score improved by 6.3 points to reach 43.67 out of 50 following the launch of its formal Investor Relations Program in December 2024. The assessment highlighted significant improvements in debt transparency and environmental, social, and governance data dissemination.