News & market updates

The Treasury will offer Rs.100 billion in a T-bill auction today (Rs.50bn 91-day; Rs.35bn 182-day; Rs.15bn 364-day). Secondary bond yields were broadly steady with the short end around 10.50–10.65% and 4-year paper near 11.10–11.33%; net liquidity surplus Rs.134.77bn and USD/LKR ~335.

Colombo Stock Exchange fell for a sixth straight session as the ASPI dropped 0.54% to 21,962.30. Turnover exceeded Rs.1.5bn with foreigners net sellers of Rs.185m; major drags included Melstacorp, John Keells, Carson Cumberbatch and CIC Holdings, while Access Engineering and Chevron Lubricants featured among top contributors.

NCGI issued its 2,000th collateral-free credit guarantee, enabling over Rs.14 billion in SME loans within 15 months and targeting 4,000 beneficiaries by year-end. The ADB- and Finance Ministry-backed scheme has allocated 20% to women-owned firms and 24% to priority sectors including agriculture, IT, tourism and exports.

New AML legislation would give statutory recognition and stronger powers to Sri Lanka's Financial Intelligence Unit, expand reporting and due-diligence rules and create a statutory National Coordinating Committee; Parliament's finance watchdog questioned the FIU's independence from the Central Bank.

Central Bank Governor Nandalal Weerasinghe backed calls for a multi-agency probe into alleged $1 billion phantom imports and said the Central Bank would participate. He cautioned timing differences and advance payments could account for about 40% of the questioned transactions and urged a comprehensive inquiry before conclusions.

Colombo bourse fell with the ASPI down 0.61% to 21,828.50, led by capital goods turnover; Industrial Asphalts jumped 60% after agreeing to sell a 48.03% controlling stake. Hela Apparel’s subsidiary signed a management services agreement amid working capital challenges.

The 10th C Rugby Tag Rugby Tournament takes place on July 17-18 at CR&FC Grounds, featuring 16 teams and a new Corporate Segment that includes corporate challengers from Commercial Bank, Dialog, Cinnamon Colombo Hotels and CDB Finance.

L B Finance PLC (LFIN.N0000) completed a nationwide network infrastructure upgrade with Huawei to strengthen reliability, speed and security, enabling faster, more secure digital services and laying the groundwork for cloud and AI-driven tools.

Siyapatha Finance, Sampath Bank's fully owned subsidiary, opened its 64th branch in Bandarawela as part of its 2026 expansion. The branch will offer leasing, deposits, gold financing, business and personal loans, factoring and Smart Pay bill services; Siyapatha holds a Fitch A(lka) Stable rating.

Colombo Stock Exchange All Share Price Index fell 141.27 points (0.64%) to 21,821 at midday. Nations Trust Bank said its Basel III-compliant Tier-2 debentures will be listed on July 8 with 5-, 7- and 10-year tranches paying 13.75%, 13.85% and 13.95% respectively.

Commercial Bank of Ceylon was named Best Bank in Sri Lanka for the 15th consecutive year at the FinanceAsia Awards 2026 and won six additional awards including Best Bank for SMEs, Use of Technology, Islamic Finance, Sustainable Bank, Private Bank and Retail Bank.

Sampath Bank (SAMP.N0000) has launched Google Pay for its Mastercard and Visa credit and debit cardholders, enabling secure tokenised tap-to-pay on Android for in-store, in-app and online transactions.

LCB Finance reported a 55% rise in PBT to Rs. 439 million for the year ended 31 March 2026, with total assets at Rs. 12.87 billion. Operating income rose 36.9% to Rs. 1.34 billion, lending grew 32% to Rs. 10.30 billion, gold loans surged 136% and deposits rose 35% to Rs. 6.29 billion.

Amana Bank Plc launched 'Amana Bank Teen Savings', a new account for 13–17 year-olds offering a personalised Visa debit card, parental preset transaction limits, online banking access, instant alerts and rewards for top exam results. Parents can open accounts via the app e-mail feature or at branches and transfer profits from existing Amana Kids or Flexi Term accounts.

Ceylinco Life has commenced construction of its 36th company-owned branch in Kirindiwela, a 3,440 sq ft eco-friendly building planned to operate on a 100% self-sufficient solar system. The branch will use local prefabricated technology and include rainwater harvesting, an STP and energy-efficient systems.

ASPI fell 118.35 points to 21,962.30, slipping below 22,000, while the S&P SL20 dropped 31.55 points to 6,135.50, led by declines in heavyweights such as Dialog Axiata and Melstacorp; banking stocks (NDB, HNB, Sampath) also recorded losses. Market turnover was LKR 1.53 billion, with JKH crossings contributing LKR 264 million.

Foreign investors bought a net US$3.0mn of Sri Lanka government securities in the week ended July 2 as the rupee recovered to about 330 per USD; YTD net outflows remain around US$13.7mn amid recent currency volatility and rising inflation following fuel price moves and a May rate hike.

Sri Lanka's rupee closed at 334.75/85 to the US dollar, slightly firmer than the previous day, while government bond yields were broadly steady; Rs 100,000 million of Treasury bills are to be auctioned on 8 July.

Colombo Stock Exchange fell, with the ASPI down 0.39% to 21,995.04 and the S&P SL20 down 0.27% to 6,150.33. Top negatives included Melstacorp, John Keells and Carson Cumberbatch while Digital Mobility Solutions, Royal Ceramics and Haycarb were positive; turnover was LKR 1.13 billion.

Secondary bond market started the week slow with dull activity and yields broadly steady; key maturities traded around 11.25%–11.75%. Money-market liquidity surplus rose to Rs.132.29bn and USD/LKR appreciated to Rs.334.90/335.

CBSL extended the suspension of Perpetual Treasuries Ltd from carrying on primary dealer activities for a further six months effective 4:30 p.m. on 5 July 2026. The extension is to allow the CBSL to continue its investigations.

Colombo Stock Exchange midday: ASPI down 0.17% (37.22 pts) to 22,043.43 and S&P SL20 down 0.15% to 6,157.85. Capital goods led turnover (LKR 46.2m of LKR 216.8m); notable gainers HNB, RCL, SPEN, SDB, NHL and decliners GREG, MELS, JKH, CARS, LOLC.

Sanath Manatunge, MD/CEO of Commercial Bank, was appointed Chairman of the Employers' Federation of Ceylon at its 97th AGM, with Dinal Peiris of Lanka Aluminium Industries named Vice Chairman. The EFC said it will continue to support labour law reforms and responsible business initiatives.

Parliament's Committee on Public Finance questioned the Central Bank over whether FATF-driven AML/CFT legal reforms go beyond domestic needs; CBSL defended the measures as necessary and said stronger laws plus demonstrated enforcement are required to avoid costly grey-listing.

Frontier Research said easing Eurozone inflation and lower oil prices could narrow Sri Lanka's fuel import bill, ease inflationary pressures and reduce depreciation pressure on the rupee. It notes Eurozone headline inflation fell to 2.8% in June and markets expect the ECB to keep rates on hold, though risks from the Middle East and food prices remain.

The Securities and Exchange Commission has invited applications for licences to operate as credit rating agencies in Sri Lanka, with applications accepted until 5 October 2026. Applicants must meet eligibility and governance requirements and be promoted by a foreign CRA or a CBSL‑licensed bank with at least five years' rating experience; Sri Lanka currently has two SEC‑licensed CRAs.

Sampath Bank has launched Google Pay for all Visa and Mastercard credit and debit cardholders in Sri Lanka, enabling tap-to-pay and tokenized transactions on Android devices. Cardholders can digitise cards for in-store, in-app and online payments, enhancing mobile-first, contactless use.

Ceylinco Life has begun building its 36th company-owned eco-friendly branch in Kirindiwela, a 3,440 sq ft facility planned to run on 100% solar power. The branch will use local prefabricated technology and include rainwater harvesting and wastewater recycling facilities.

Sampath Bank PLC launched Google Pay for Mastercard and Visa credit and debit cardholders, enabling tap-to-pay on Android for in-store, in-app and online transactions. The service uses tokenization for security and supports global merchant acceptance without physical cards.