News & market updates

ADB urged Sri Lanka to make cybersecurity and data protection core to its digital transformation. Government advisers said recent laws and institutions (PDPA, Data Protection Authority, National Cyber Security Centre) and a forthcoming Cyber Security Bill will underpin plans to grow the digital economy to $15bn by 2029 and boost digital exports.

IMF and G20 participants urged greater transparency and faster restructuring of non-bonded commercial loans to ease sovereign debt stress, highlighting risks for banks with exposures in vulnerable countries such as Sri Lanka.

Nations Trust Bank (NTB) participated in the Central Bank's Pay Digital event in Dambulla, showcasing its Nations Direct and FriMi apps and offering instant account openings to promote cashless digital payments nationwide.

The Reserve Bank of India has allowed Indian banks and their Sri Lanka branches to lend to Sri Lankan customers denominated in Indian rupees, widening credit access and reducing exchange-rate risk for Sri Lankan businesses.

Sri Lanka's banks cut foreign borrowings and boosted FX deposits and investments, lifting net foreign‑currency assets 42.5% y/y to USD 1.5bn at end‑Q2 2025. D‑SIBs (84.8% of these investments) and banks including Sampath Bank and HNB financed foreign governments and firms via sovereign securities and syndicated loans.

Speakers at the Daily FT–CICRA Cyber Security Summit highlighted the human–AI partnership as key to stronger cyber defences, citing up to 90% faster detection, 60% fewer false positives and 75% shorter response times. Bank and security leaders urged AI governance and human oversight.

Commercial Bank of Ceylon CIO Sumudu Gunawardhana urged banks to join the Fintech Forum to strengthen bank–fintech partnerships and grow wallet share. He said fintechs provide agility while banks offer trust, scale and compliance support to expand digital financial services and improve cybersecurity.

Sri Lanka's stock market closed higher with the ASPI at 22,094.89 (up 0.65%) and S&P SL20 at 6,187.51 (up 0.64%), led by Melstacorp, Sampath Bank, Dipped Products, Hayleys and Commercial Bank; market turnover was LKR 9.7bn. Nations Trust Bank announced conversion of non-voting to voting shares for Q4 2025.

Nations Trust Bank PLC facilitated a Rs. 2.7 billion foreign direct investment for Q Collection to acquire two Sri Lankan apparel subsidiaries. The transaction preserves over 2,400 jobs, revives manufacturing capacity and involved cross-border structuring across Sri Lanka, Bangladesh and Singapore.

Nations Trust Bank PLC structured and financed a LKR 2.7Bn foreign acquisition by Singapore's Q Collection of two local apparel subsidiaries, preserving over 2,400 jobs. NTB's Corporate Banking team navigated legal and regulatory frameworks across Sri Lanka, Bangladesh and Singapore to complete the deal.

Nations Trust Bank (NTB) announced a proposed Rs. 18 billion acquisition of HSBC Sri Lanka's retail banking business and its shares rose 22.72% to Rs. 390.25. The deal brings ~200,000 customers, seven branches and a large credit-card franchise and is expected to be earnings-accretive with ROE remaining around 20%+.

Sampath Bank led a Rs. 33.5 billion syndicated loan for the Ceylon Electricity Board. The facility, arranged alongside Nations Trust Bank and Pan Asia Bank, is intended to cushion CEB's debt restructuring and support its ongoing power supply operations.

Nations Trust Bank (NTB.N0000) signed a binding agreement to acquire HSBC Sri Lanka’s retail banking business — covering about 200,000 customers including premium banking, credit cards and retail loans — funded with internally generated funds; the transaction is subject to regulatory approval and expected to complete in H1 2026.

Colombo bourse rose as the ASPI gained 0.86% (closing at 21,521) with turnover of Rs. 9.29 billion, led by banking-sector activity and top contributors SAMP, CTC, CFIN, SFCL and DIST. Nations Trust Bank fell, while Jetwing Symphony, Ceylon Hotels and Hemas recorded gains.

Sampath Bank led a Rs. 33.5 billion syndicated loan for the Ceylon Electricity Board, joined by Nations Trust Bank and Pan Asia Bank, to support CEB's debt restructure and ongoing operations.

Nations Trust Bank PLC agreed to buy HSBC Sri Lanka’s retail banking business for Rs.18 billion, including about 200,000 accounts, credit cards, retail loans and staff, with completion expected in H1 2026 subject to regulatory approval. NTB said it will fund the deal from internal resources and reported Rs.62.5b retained earnings and Rs.447b deposits at end-June 2025.

Hatton National Bank hosted the inaugural Sri Lanka FinTech Summit 2025 at BMICH, where Visa launched 'Visa Accept' in Sri Lanka to enable merchants to accept card payments via smartphones without extra hardware. The two-day forum gathered regulators, banks, startups and policymakers to discuss digital payments, blockchain, AI and financial inclusion.

Hilton Colombo Residences will host 'A Voyage of Thai Flavors' from 2–16 October 2025 with a nightly buffet priced at Rs. 7,800 nett; NTB Amex and Mastercard cardholders receive an exclusive 20% discount.

Nations Trust Bank will acquire HSBC Sri Lanka’s retail banking business for Rs18 billion, including about 200,000 customer accounts; the deal is expected to complete in H1 2026 subject to Central Bank and other approvals.

Nations Trust Bank (NTB) signed a binding agreement to acquire HSBC Sri Lanka’s retail banking business for LKR 18 billion, covering about 200,000 customer accounts including premium customers, cards and retail loans; completion expected in H1 2026 pending Central Bank and other approvals.

The Colombo Stock Exchange's ASPI rose 0.26% to 21,282, led by gains in diversified financials, banks and capital goods. Top contributors included Hayleys, LOLC, Browns Investments, DIMO and Ceylon Cold Stores, with turnover Rs6.56bn and a net foreign inflow of Rs61.38m.

Colombo Stock Exchange rose as the ASPI gained 0.57% to 21,085, led by Sierra Cables and diversified conglomerates; market turnover was Rs 6.5bn with Sierra Cables contributing Rs 1.2bn. Top index contributors included John Keells, Hayleys, Sierra Cables, Melstacorp and Aitken Spence; net foreign inflow was Rs 58.21m.

Colombo's ASPI rose 0.91% (189.84 pts) to 20,965.26, extending a three-session rally; FCT.N0000 declared a Rs.5 dividend and its shares jumped 30.2%, while NTB.N0000, DFCC.N0000, JKH.N0000, CINS.N0000 and MELS.N0000 were key contributors. Turnover was Rs.6.86bn and foreigners were net sellers (Rs.481.2m).

Colombo Stock Exchange closed higher: ASPI +0.91% at 20,965 and S&P SL20 +1.16% at 5,971, with turnover Rs6.86bn led by diversified financials, banks and capital goods. Top contributors included Nations Trust Bank, DFCC, John Keells, Singer and Melstacorp; First Capital Treasuries declared a Rs5 dividend and Acme announced a six‑for‑one rights issue.

Sri Lanka Tourism Development Authority (SLTDA) has joined GovPay, enabling tourism operators to pay the Tourism Development Levy and other SLTDA services online via banks' internet/mobile banking and connected FinTech apps. The initial rollout covers TDL payments with phased expansion planned.

SLTDA has joined GovPay, enabling Tourism Development Levy and other SLTDA payments to be made online via 14 banks and six FinTech apps (including major local banks and L B Finance's CIM). GovPay, launched Feb 2025, has processed 1,773 services totalling over Rs.110 Mn and will expand to more SLTDA payments.

Colombo stocks rose for a second session as the ASPI gained 0.76% (156.05 pts) to 20,775.42 on turnover of Rs. 6.61bn, with foreigners net selling Rs. 580m. Commercial Bank, Hemas and Melstacorp were top positive contributors while Alumex posted a strong gain and Sierra Cables declined.

Colombo Stock Exchange closed higher: ASPI +0.76% to 20,775 and S&P SL20 +0.59% to 5,903, with turnover Rs6.61bn driven by materials (Rs1.12bn) and capital goods (Rs1.68bn). Alumex was heavily traded and ACL Cables, which announced an interim dividend of Rs1.50, also rose.