News & market updates

Alliance Finance Company PLC (ALLI.N0000) issued and listed Sri Lanka’s first Social Bond on the Colombo Stock Exchange on 28 Aug; proceeds will fund projects delivering measurable social benefits such as finance for marginalised communities, women-led enterprises, job creation and skills development.

Colombo Stock Exchange closed higher as the ASPI rose 1.30% to 20,619 with turnover of Rs 6.21bn, led by gains in banks and capital goods. Key risers included Commercial Bank, Sampath Bank, HNB, Aitken Spence, DFCC and active trading in Sierra Cables.

Banking system net foreign assets fell from about $3.3bn in April 2025 to $2.90bn in July 2025, reversing after rate cuts and a pickup in private credit. Central bank net foreign assets also eased to around $1.41bn in June (≈$1.46bn in July), buying $142m from the interbank market in August.

Colombo Stock Exchange closed down, with the ASPI down 0.14% (29.43 pts) at 20,612 as budget concerns created volatility. Market turnover was 5.847 billion rupees; DFCC, Nations Trust and Watawala were among top gainers while Commercial Bank and Sampath weighed on the index.

Colombo Stock Exchange rose as the ASPI gained 0.46% to 20,769, with a C T Holdings crossing contributing Rs 3.6bn to turnover; C T Holdings closed down Rs 29.75 at Rs 689. Banks led gains with HNB, NDB and DFCC up, while Sampath and Nations Trust fell.

LOLC sold part of its stake in Digital Mobility Solutions Lanka (PickMe) while foreign fund Tundra increased buying; PickMe dominated turnover with Rs.1 billion on 23.4 million shares and closed at Rs.132.75 (up Rs.0.50). Several other listed names saw notable turnover and mixed price moves.

Daraz Sri Lanka launches its 9.9 Birthday Cart Sale (Sep 9–20) with discounts up to 85%, Rs.20m in vouchers and partner bank/card discounts up to 15% from Commercial Bank, Nations Trust Bank AmEx, Sampath Bank and LOLC Finance.

Nations Trust Bank (NTB.N0000) hosted a 'Beyond Ordinary' business forum in the Southern region to share market insights, offer tailored banking solutions to support recovery and growth, and confirmed support for TrailSL’s Karapitiya Cancer Hospital project.

Nations Trust Bank PLC hosted a 'Beyond Ordinary' business forum in the Southern Region for Business and Private Banking customers to share market insights, promote tailored banking and digital solutions, and back TrailSL's Karapitiya Cancer Hospital project.

ICCSSL hosted a July 30 Coffee Evening where CSE and SEC officials and practitioners discussed the Colombo Stock Exchange's new governance regulations for listed companies, focusing on compliance complexities and implementation challenges.

Nations Trust Bank (NTB) awarded two American Express cardmembers complimentary front-row tickets and Amex Sky Suite access for the Formula 1 Singapore Grand Prix 2025 (Oct 3–5) via its 'Get Closer to the Grid' two-month draw.

People’s Bank reported an all-time-high 1H Profit Before Tax of Rs. 28.0 billion and PAT of Rs. 18.2 billion. The bank also reported Rs. 3.6t in assets, Rs. 3.1t deposits, improved net interest margins and a digital customer base of 3.7m.

Hatton National Bank MD Damith Pallewatte is leading the Sri Lanka FinTech Summit 2025 (Sept 24–25) to coordinate a national fintech ecosystem, targeting measures like 95% financial inclusion by 2030 and $100m in near-term fintech investment; workstreams will focus on SME lending, KYC interoperability, blockchain pilots and cross-border payments.

S&P SL20 crossed 6,000 for the first time, rising 58.46 points (0.97%) to close at 6,055.92; the ASPI also hit a record 20,571.07 (up 100.55 points, 0.49%) with turnover over Rs.10.8 billion.

Colombo market hit a record as the ASPI rose 289.69 points (1.45%) to close at 20,218 on turnover of Rs. 9.54bn. Banks led activity (bank sector +2.78%), with top contributors including COMB, DFCC, LOLC, NTB and SAMP.

The ASPI rose 1.45% to 20,218.36, led by banking stocks after interim results. Commercial Bank profits +101% to 15.9bn, HNB +37% to 11.74bn, Nations Trust +11% to 4.7bn, NDB -6% to 2,447m and Sampath -17% to 6.7bn.

Nations Trust Bank reported Q2 profit up 11% y/y to 4.7 billion rupees, with earnings per share of 14.24 rupees. Net interest income rose 9% to 9.7 billion, loan loss provisions fell to 144 million, loans grew 26% and Tier-1 capital eased to 16.6%.

Nations Trust Bank (NTB.N0000) reported PAT up 10% YoY to Rs. 9 billion in 1H 2025, with loans rising Rs. 74 billion (26% YoY). NIM was 6.37%, ROE 21.25%, Net Stage 3 Ratio 1.24% and Total Capital Adequacy 18.24%.

Sri Lanka's central bank swaps rose to $3,870m while net foreign reserves after swaps fell to $2,210m by June. Analysts warn buy-sell swaps create contingent liabilities and heighten forex risk as recent rate cuts have reduced reserve accumulation, weighing on banks' FX exposure.

Nations Trust Bank PLC reported Profit After Tax of LKR 9Bn for 1H 2025, up 10% YoY, and loans increased by LKR 74Bn (26% YoY). NIM was 6.37%, ROE 21.25%, EPS LKR 26.59, Net Stage 3 Ratio 1.24% and Total Capital Adequacy Ratio 18.24%.

CSE director Ray Abeywardena said Sri Lanka's exchange rate stability is providing investor confidence and predictability. He credited prudent policy, improved external sector performance and steady foreign investment and tourism receipts for the stability.

Daraz Sri Lanka will run its 8.8 Brand Prix Sale from 8–15 Aug with over 18,000 deals, brand launches and bank payment discounts (up to 15%) and Daraz vouchers (up to 9%) to drive consumer purchases. Major FMCG and electronics brands, plus partner banks, are participating.

Daraz Sri Lanka is running the 8.8 Brand Prix Sale from 8–15 Aug with over 18,000 deals, bank partner discounts (Commercial, DFCC, HNB, NTB, Sampath) and brand participants including Singer, plus exclusive launches and vouchers across Daraz Mall.

The C-Rugby 7-a-side Tag Tournament returns on Aug 30 at CR&FC with 16 teams and 39 games; event partners include Elephant House (Ceylon Cold Stores) and Nations Trust Bank.

Sri Lanka’s central bank sold 231.9 billion rupees (~$770m) of foreign exchange to the government unsterilized in H1 2025, reducing banking-system liquidity. The operations are likely to tighten liquidity and put upward pressure on interbank rates.

Brand Finance published Sri Lanka's 100 Most Valuable Brands for 2025, ranking Bank of Ceylon top with a brand value of Rs.57,411m; Commercial Bank, Dialog and People’s Bank follow the top positions. The list covers firms across banking, telecoms, FMCG, healthcare, hospitality and other sectors.

John Keells Holdings reported Q1 FY2025/26 group revenue of Rs.114.15 billion and EBITDA of Rs.12.97 billion, up 64% and 69% year-on-year respectively, driven by Retail and Transportation. Nations Trust Bank (part of the group) posted solid profitability growth from higher loan volumes and reduced impairments.

HNB CEO Damith Pallewatte outlines HNB's plan to channel private capital into agrimodernisation and exporters, targeting 30,000 Agripreneurs under HNB Sarusara. He cites 4.8% GDP growth in 1Q25 and an 800bp policy‑rate cut since 2023 as supporting conditions.

The Association of Professional Bankers hosted a panel at the Bank of Ceylon where CISOs from Commercial Bank and Hatton National Bank and other experts discussed strengthening cyber risk supervision and digital resilience for the banking sector.

Colombo market extended its rally after the Central Bank held policy rates, with the ASPI up 151.15 pts (0.79%) to 19,243. Turnover was Rs.6.23bn (235.33m shares) while foreigners were net sellers (Rs.99.6m); DFCC, Richard Pieris, NDB, Carson, NTB, JKH, Dockyard, Sunshine and RIL were among top contributors/movers.