The deal will allow the island to weather "present difficulties", State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal said in an interview with the Daily Mirror.
Dwindling foreign reserves, a tumbling currency and rising debt levels have dogged Sri Lanka over the last year, leading to increasing fears of a default.
US crude oil and refined product stockpiles likely fell last week, with distillate inventories seen drawing down for fifth straight week, a preliminary Reuters poll showed on Monday.
Yields in 10-year bonds were one basis point higher at 1.78%. They reached a 23-month high of 1.97% on Feb. 26 on bets of rate hikes as early as next year. Bond futures were also stable at 98.229.
Speculators cut their net short dollar positions in the latest week to $27.80 billion, which is the smallest short position since Dec. 15 and suggests that dollar bears are giving up on betting against the greenback.
The weaker fixing has pushed China's trade-weighted yuan basket index to 97.06, the highest since June 22, 2018, according to Reuters' calculation based on official data.
Prior to market opening, the People's Bank of China (PBOC) set the midpoint at 6.4904 yuan per dollar, 146 pips, or 0.22%, weaker than the previous fix of 6.4758. It was the weakest since Jan. 4.
Meanwhile, European Central Bank board member Fabio Panetta said the bloc's monetary authority should expand bond purchases or even increase the quota earmarked for them if needed to keep yields down.
Canada's current account deficit narrowed to C$7.3 billion in the fourth quarter from a revised C$10.5 billion deficit in the third quarter, Statistics Canada said. Canada's fourth-quarter GDP data is due on Tuesday.
On the other hand, the Australian dollar dropped as much as 0.45% before erasing some losses to trade at $0.7766, after the Reserve Bank of Australia re-committed to keeping interest rates at historic lows.
Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4754 per dollar, 41 pips or 0.06% softer than the previous fix of 6.4713, and the weakest since Jan. 28.
"A clear action plan on the top priorities would be more important for the market to evaluate the impact on industries and the whole economy," said Iris Pang, Greater China economist at ING.