News & market updates

Sri Lanka's rupee strengthened to 335.65/80 per US dollar in the spot market from 336.00/10 the previous day, dealers said. Government bond yields edged lower, with the 15.10.2030 bond around 11.55-11.60% and the 01.07.2037 bond about 12.75-12.80%.

Seylan Bank PLC reported 1H 2026 PAT of Rs. 6,080 million, up 10.78% YoY (PBT Rs. 9,298 million, up 10.10%), with total assets of Rs. 976 billion and EPS of Rs. 9.57; NIM eased to 4.16% while impairment charges rose to Rs. 733 million.

The Central Bank will begin compensating insured depositors of Nation Lanka Finance PLC from 1 August via selected People's Bank branches, under the Sri Lanka Deposit Insurance Scheme with payouts up to Rs.1.1 million; the finance company's licence was cancelled effective 3 July and claims can be lodged until 2 July 2032.

Sri Lanka's public debt management office sold Rs14,000 million of 3-, 6- and 12-month Treasury bills on tap at average yields of 9.86%, 10.21% and 10.20%, bringing total bills sold this week to Rs154 billion; total market subscription was Rs41,324 million.

Colombo Stock Exchange closed lower on Friday: ASPI down 0.09% (19.50 pts) at 21,129.21 and S&P SL20 down 0.01% at 5,945.22. Market turnover was Rs 4.35 billion, with capital goods leading at Rs 1.35 billion; Hemas, Haycarb, Melstacorp and Vallibel One were positive contributors while HNB, Central Finance and DFCC were negative contributors.

Sampath Bank PLC held its fifth SME Business Circle in Jaffna, bringing SME entrepreneurs, partners and bank leaders together to discuss growth, resilience and access to innovative banking solutions. The bank highlighted its end-to-end AI capability for SME banking and hosted sessions on sustainability, market outlook and partner technology demonstrations.

HNB PLC has partnered with Euro Motors Pvt Ltd to introduce a comprehensive vehicle leasing solution in Sri Lanka, aimed at making DONGFENG and JETOUR vehicles more accessible. Euro Motors will complement the financing with maintenance services for customers.

Sri Lanka's top 100 brands rose 17% to a combined Rs652bn, surpassing the 2019 peak of Rs630bn, says Brand Finance's Sri Lanka 100 2026 report. Banking accounted for 42% (Rs275bn) of the total; BOC remained most valuable while Commercial Bank, Sampath, Nations Trust, Dialog, Keells and PickMe all saw brand value gains.

Colombo Stock Exchange indices were trading higher midday: ASPI up 0.13% (26.86 pts) at 21,175.57 and S&P SL20 up 0.23% at 5,959.94, with retailing leading turnover at LKR 1.029 billion. Seylan Bank reported Q2 profit attributable to equity holders of LKR 3.21 billion, up 16.31% y/y.

Brand Finance's Sri Lanka 100 2026 report shows the combined value of the nation's top 100 brands rose 17% to a record LKR652 billion, surpassing the 2019 peak; banking brands account for 42% (LKR275bn). Several listed firms including Commercial Bank, Dialog, Sampath, Nations Trust, PickMe and John Keells recorded brand-value gains.

Sampath Bank hosted an SME Business Circle in Jaffna to engage SME customers and promote long-term business success through knowledge sharing, access to innovative banking and digital solutions, and sessions on sustainability and market outlook.

Brand Finance's Sri Lanka 100 2026 report: the combined brand value of the top 100 Sri Lankan brands rose 17% to a record Rs. 652 billion, surpassing the 2019 peak. Banking brands account for 42% (Rs. 275bn) of the total; several banks and digital brands posted double-digit gains.

HNB Life PLC marked its 25th anniversary by ringing the Colombo Stock Exchange opening bell in a special ceremony, commemorating its evolution from HNB Assurance to the rebranded HNB Life and reaffirming its focus on life insurance.

Sampath Bank PLC held its fifth SME Business Circle in Jaffna to connect SME entrepreneurs with the bank's leadership, strategic partners and advisory sessions. The event highlighted the bank's AI-enabled SME banking capabilities, sustainability guidance and networking with partners offering automation and agri solutions.

Colombo bourse ended lower: ASPI fell 0.38% to 21,148.71 and S&P SL20 dropped 0.26% to 5,946.03. Market turnover was nearly Rs.1.1bn, foreign investors were net sellers of Rs.710,860, with SPEN, CINS, COMB, ACL and RICH among the decliners.

Seylan Bank reported profit after tax of LKR 6.08 billion for H1 2026, up 10.78% year-on-year (profit before tax LKR 9.298 billion, +10.10%). Total assets rose to LKR 976 billion, ROE was 14.74% and the impaired loans (Stage 3) ratio remained 1.03%.

Colombo Stock Exchange closed lower, with the ASPI down 0.38% to 21,148.71 and market turnover of Rs.1.094 billion; capital goods led turnover at Rs.389 million. Bogala Graphite reported an indirect change of control (shares down 2.01%) and Lankem Ceylon disclosed a Rs.500m corporate guarantee for its subsidiary (shares up 5.23%).

Odel PLC has revised its Odel Mall plan, prioritising completion of Zone 1 within 18-24 months and deferring Zone 2. Construction has recommenced, significant contracts and capital commitments remain, and the company is pursuing a reduced-scope financing plan plus loan restructuring with a HNB-led banking consortium.

Colombo bourse traded mixed midday with the ASPI down 0.12% to 21,203.70 and market turnover at Rs200.5mn, led by capital goods (Rs58.5mn). Commercial Bank said its Basel III subordinated debentures will be listed on July 30, 2026; JAT Holdings declared a final dividend of Rs0.72 (ex-div Aug 7, 2026).

Sarvodaya Development Finance PLC held Achievers' Night 2026 on 11 July to recognise staff and branch performance for FY2025/26; 75 employees received cash awards and 29 top performers were awarded overseas tours. Awards spanned 10 categories and five upcoming branches were recognised.

Sanasa Development Bank (SDB) opened a new Business Centre at 167 Union Place, Colombo 02 to expand its corporate, business and mass-affluent banking services. The centre will offer tailored lending and deposit facilities, dedicated relationship management, money-market solutions and digital banking packages.

Asia FinTech Network will host Asia FinTech Week 2026 in Colombo from 14-18 Sept 2026, a five-day regional fintech conference expected to attract 800+ delegates from 25+ countries to discuss AI, CBDCs, digital payments, blockchain and investment opportunities.

The Association of Professional Bankers (APB) Sri Lanka hosted its first 2026 technical session on 'Building Trust in a Digital Era: Safeguarding the Banking System from Fraud,' featuring HSBC's Levent Kutluca who urged an ecosystem approach and balancing security with user experience.

The Cabinet approved steps to introduce legislation to regulate virtual asset service providers, recommending the SEC as the regulator working within a supervisory structure coordinated by the CBSL, FIU and IRD and establishing a ministerial sub‑committee to carry the work forward.

The Colombo market extended its recovery into a second session as the ASPI rose 0.20% to 21,229.14, with turnover above Rs. 2 billion and foreign investors net sellers of over Rs. 1 billion. Top contributors to the rise were Colombo Dockyard, John Keells Holdings, Commercial Bank, ACL Cables and NDB Bank.

Future Life Holdings' FLi Super opened its 19th supermarket in Karandeniya, combining a FLiCo electronics corner and an on-site Future Life Investments microfinance branch. The outlet offers groceries and appliances with exclusive interest-free five-instalment payment plans and on-site financial services.

Sri Lanka sold all Rs140 billion of Treasury bills at Tuesday's auction as yields dipped on shorter maturities: the 3-month yield fell 9bp to 9.86% (Rs71.93bn sold), the 6-month fell 3bp to 10.21% (Rs50bn sold), and the 12-month was unchanged at 10.20% (Rs18.06bn sold).

Sri Lanka's rupee closed at 336.10/20 to the US dollar on Tuesday, versus 336.20/35 the previous day. Government bond yields edged mostly up on select tenors: 2028 and 2030 rose slightly, 2033 fell, while several issues were flat.

Sri Lanka's Cabinet approved designating the Securities and Exchange Commission (SEC) as the official regulator for virtual assets and Virtual Asset Service Providers (VASPs). The SEC, alongside the Central Bank's FIU and the Inland Revenue Department, will enforce AML/CFT, mandatory transaction reporting and VASP registration to bring offshore and P2P crypto trading under formal oversight.

John Keells Holdings reported Group EBITDA up 26% to Rs.16.35 billion for Q1 ended June 30, 2026. Profit attributable to equity holders was Rs.62 million (vs a Rs.804 million loss a year earlier) and underlying profit excl. net exchange losses was Rs.1.95 billion, led by Transport, Property and Consumer Foods, with Nations Trust Bank supporting Financial Services performance.