The country's bonds due in 2030 dropped by 3 US cents, hitting 49.9 US cents—the lowest level since February—marking a 15% decrease from their peak earlier this year. Bonds due in 2027 also fell, losing over 1 US cent to reach 49.6 US cents, Bloomberg news agence reported.

The pressure in the market has mounted as the September 21 elections approach, with fears that a change in leadership could disrupt ongoing debt negotiations, which have nearly reached a conclusion.

Opposition leaders have expressed intentions to renegotiate Sri Lanka’s agreement with the International Monetary Fund (IMF).