News & market updates

CBSL extended the tenure of Administrator P W D N R Rodrigo at Nation Lanka Finance PLC by six months to 03.01.2027 to continue the firm's resolution process. The Administrator will retain full control of NLFP's assets and operations, must report to CBSL, and stakeholders are asked to cooperate and route payments through NLFP bank accounts.

CBSL extended the tenure of administrator P W D N R Rodrigo at Nation Lanka Finance by six months to January 3, 2027, to ensure an uninterrupted winding-up process. The administrator will retain full control of NLFP's assets, operations and must report to CBSL.

The government borrowed Rs.1.96 trillion in 2025, well below the Rs.4 trillion statutory ceiling, raising Rs.2.4 trillion via domestic Treasury Bond issuances while securing $1.23 billion in new foreign loan commitments and receiving $1.78 billion in disbursements.

Colombo market extended losses as the ASPI fell 1.03% for the week to 22,178.73 and the S&P SL20 fell 0.85% to 6,194.22. Market turnover topped Rs.1.5bn with foreigners net sellers of Rs.157.9m and notable moves from SAMP, CINS, JKH, RCL (weak) and DIAL, BUKI, CARS, AEL, COMB (positive/active).

The Central Bank revoked the finance business licence of Nation Lanka Finance PLC effective 3 July and initiated winding-up after rescue efforts failed. The Sri Lanka Deposit Insurance Scheme will reimburse insured depositors up to Rs.1.1 million (covering ~99.1%); claims open until 2 July 2032.

Sri Lanka rupee closed at 335.20/35 to the US dollar, firming from 335.90/336.00, while government bond yields edged up slightly with selected maturities closing around 10.35%–11.65%.

Associated Motor Finance Company PLC will amalgamate with L B Finance PLC effective July 31, 2026, with AMF shares suspended after trading on July 27. L B Finance made a voluntary offer in Oct 2025 to buy 113,327,268 AMF shares at Rs.50 (100% of issued capital).

Rights issue · 4:11 at Rs 33.30 · XD Jul 31, 2026

Sri Lanka sold Rs7,731 million of Treasury bills on tap at an average rate of 10.30%, bringing this week's total T‑bill sales to Rs107,731 million; the 6‑month bill settles on July 3.

CBSL expects inflation to remain around 6.8% in the coming months but, aided by lower global oil prices and if expectations remain contained, sees no immediate need for another policy rate hike. The central bank raised the OPR by 100bps in late May and says tightening is already transmitting through higher market interest rates and some reductions in domestic energy prices have been observed.

Foreign institutional big-ticket buying pushed Sri Lanka's secondary government bond yields lower, with the 15.10.30 maturity trading down to 11.23%-11.35%. The rupee appreciated to LKR 335.85/336.00, net liquidity surplus was Rs.81.20bn and overnight call/Repo averages were 9.21%/9.25%.

Colombo market fell for a third session as the ASPI dropped 0.10% (21.79 pts) to 22,221.91 on heavy foreign net selling of Rs. 774.2 million. Top negative contributors included SPEN, SAMP, DFCC, CTC and CINS while CARG, DIAL, JKH and MELS supported the index; capital goods led turnover (55%).

Nations Trust Bank PLC (NTB) opened its 34th quarterly conversion window allowing holders of ordinary non-voting convertible shares as at 30 September 2026 to convert into ordinary voting shares; applications must be submitted by 5 October 2026 and conversions will be completed within 22 market days.

L B Finance (LFIN.N0000) secured $35m in long-term funding — $20m from Norfund and $15m from Swedfund — to support MSMEs, climate-smart agriculture, and electric/hybrid vehicle financing.

Ameena Ziauddin (Norfolk Foods) was elected President of the Council for Business with Britain; John Keells (JKH.N0000), Hayleys (HAYL.N0000) and Aitken Spence (SPEN.N0000) were elected to the 2026–27 committee and Commercial Bank (COMB.N0000) was invited to join. The meeting highlighted rising UK tourist arrivals and UK DCTS reforms expanding zero‑tariff access for Sri Lankan exporters.

Asia Asset Finance PLC opened a new Training and Development Centre in Kurunegala. The centre will provide induction, residential and management training to strengthen governance, compliance, employee retention and service quality across the company's finance operations.

The Central Bank of Sri Lanka said 99.1% of Nation Lanka Finance PLC depositors will receive full settlement under the Sri Lanka Deposit Insurance Scheme (up to Rs.1,100,000) after the company's licence was cancelled on July 3, 2026; remaining depositors get the cap and may recover balances during liquidation.

Colombo Stock Exchange closed down as the ASPI fell 0.19% (43.18 points) to 22,178.73 on turnover of Rs.1.54 billion. Asia Asset Finance announced GM and rights timetable and Associated Motor Finance said its merger with L B Finance will become effective by 31 July 2026.

UN Global Compact Network Sri Lanka held CATALYZE 2026: Social on 24 June to mobilize businesses on social sustainability and responsible leadership; participants and partners included Jetwing Symphony PLC, Lighthouse Hotel PLC, Hemas Holdings, Commercial Bank, Sampath Bank and Elpitiya Plantations.

Deloitte Sri Lanka hosted the Saarthi Programme for independent directors in Colombo to discuss evolving board governance priorities, focusing on cyber and technology risks, fraud risk management, AI and social media governance to strengthen board oversight and organisational resilience.

Sri Lanka's central bank has cancelled the finance business licence of Nation Lanka Finance PLC and will wind up the company; the Sri Lanka Deposit Insurance Scheme will compensate insured depositors up to Rs.1,100,000 each, covering about 99.1% of depositors.

Colombo Stock Exchange was flat midday with the ASPI up 0.03% at 22,229.37 and banks leading turnover at LKR 279.8m; Singer Finance said its total assets surpassed LKR 100 billion in Q1 2026/27.

Central Bank of Sri Lanka cancelled Nation Lanka Finance PLC’s licence effective 03.07.2026 and will proceed to wind up the company after appointing an Administrator; the Sri Lanka Deposit Insurance Scheme will pay insured depositors up to Rs.1,100,000 each, covering about 99.1% of depositors.

Amana Bank was featured at the Islamic Development Bank (IsDB) Private Sector Forum in Baku during the IsDB Group's 2026 Annual Meetings. The bank, whose principal shareholder is the IsDB Group, showcased its Islamic-banking success story and its OrphanCare CSR initiative.

UN Global Compact Network Sri Lanka held CATALYZE 2026: Social on 24 June with Jetwing Symphony/Lighthouse Hotel PLC Chairman Hiran Cooray as a keynote speaker. Listed partners and patrons included Elpitiya Plantations, Hemas Holdings, Commercial Bank and Sampath Bank.

Sri Lanka's rupee closed at 335.90/336.00 to the US dollar on Thursday, firmer than 336.20/336.40 the previous day, while government bond yields fell across maturities (e.g. 15.09.2027: 10.35–10.45%; 01.08.2030: 11.18–11.25%).

The World Bank reclassified Sri Lanka from lower-middle-income to upper-middle-income effective July 1; 5.0% real GDP growth in 2025 and small population and exchange-rate effects pushed GNI per capita over the threshold. The WB warned the status is fragile due to high public debt and slowing growth.