News & market updates

Fitch Ratings says US consumer spending growth is slowing as inflation erodes real incomes, with real spending easing to 1.4% qoq annualized in 1Q26 and Fitch forecasting 1.7% growth for 2026. Lower oil prices could ease the squeeze, but falling savings and rising auto and credit-card delinquencies point to uneven spending.

Sri Lanka's rupee was quoted at 336.50/80 to the US dollar in the spot market (from 335.15/40 the prior day); bond yields were broadly steady and a Rs70bn Treasury bill auction is scheduled.

Asian stocks wobbled after a global tech- and semiconductor-led selloff, with MSCI’s Asia-Pacific ex-Japan index down 0.02%. Market caution was driven by concerns about higher interest rates (Fed/BoJ), falls in oil and gold, and volatility around currencies and tech sector valuations.

First Capital Research: aggregate earnings of 271 listed companies fell 11.4% YoY in the March 2026 quarter (third straight quarter), but underlying earnings rose 30.1% YoY after adjusting for major one-offs. Food, Beverage & Tobacco dragged the aggregate result while retailing and telecom posted strong gains (e.g. UML, DIAL, SLTL, SINS).

A Cabinet-appointed committee reviewing Sri Lanka’s Free Trade Agreements is expected to submit recommendations in July, and an India Trade Desk has been launched to help Sri Lankan firms tap the Indian market. Bilateral trade reached about $5.8bn in 2025, with Sri Lankan exports to India over $1bn and imports $4.3bn.

The IRD enacted broad tax reforms under the Inland Revenue (Amendment) Act No.11/2026 effective 3 June, including new capital gains rates (15% for individuals/partnerships; 30% for trusts, unit trusts, mutual funds and NGOs), expansion of a 5% withholding tax on many professionals, expanded TIN use, unit-trust compliance rules and stronger enforcement.

Rs.70bn Treasury Bill auction scheduled today (Rs.35bn 91-day, Rs.25bn 182-day, Rs.10bn 364-day); secondary bond yields traded mixed with the short end marginally lower and medium maturities slightly higher. Call money 9.21%, repo 9.24%, USD/LKR ~335.00/335.50.

Colombo Stock Exchange closed lower as the ASPI fell 0.22% (47.91 pts) to 22,208.58 with turnover Rs1.195bn. Galadari Hotels (GHLL) revised its Galadari Hotel Colombo refurbishment reopening to early Q4 2026; its shares were down 1.84% at Rs16.00.

Citizens Development Business Finance (CDB.N0000) signed an MoU with Hayleys Mobility on June 16, 2026 to provide tailored financing for electric and hybrid vehicles, offering flexible repayment tenors, exclusive insurance benefits and lifetime annual fee waivers on CDB credit cards for Hayleys customers.

Hatton National Bank (HNB.N0000) will be Title Sponsor of the CCWE Fashion Week and International Summit 2026, held 16–20 July at Cinnamon Life, Colombo. HNB says the sponsorship supports women entrepreneurs, SME development and financial inclusion.

Alliance Finance Company PLC (ALLI.N0000) has engaged the IFC in an advisory partnership to strengthen its climate-smart agriculture financing, including a comprehensive diagnostic of agri lending, product assessment, and development of climate-risk tools and solutions.

Colombo Stock Exchange was flat in Wednesday intraday trading: ASPI down 0.02% at 22,252.79, S&P SL20 at 6,193.16 and turnover Rs 406 million, with materials leading turnover at Rs 88.6 million. Diesel & Motor Engineering declared a final dividend of Rs 40 per share; SANASA Life plans to raise up to Rs 500 million via Tier II debentures.

Commercial Bank (COMB.N0000) rewarded two Visa credit cardholders with trips to the FIFA World Cup Final on 19 July 2026, each receiving two final tickets, return business-class flights and a four-night tour package. Winners were selected from card spending between 15 March and 10 May 2026 in a spend-drive for Platinum, Signature and Infinite cardholders.

The ASPI edged up 0.01% to 22,256.49 with turnover above Rs.1.56bn and foreign investors net-selling Rs.225mn. Hemas, NDB and Hayleys Fibre were top turnover contributors (Hemas and Hayleys up, Panasian Power down).

Bank of Ceylon is promoting its BOC Flex and Lanka QR solutions to expand QR-based cashless payments nationwide, leveraging its more than 9,000 employees to advance digital payment adoption.

The Association of Professional Bankers (APB) inducted 30 Bank Coordinators representing 29 banks at its 2026 induction program to strengthen professional engagement, drive continuous professional development and improve coordination between APB and member banks for 2026/2027.

Lanka Credit and Business Finance PLC opened its 25th branch in Wellawatta on 11 June 2026 and plans to expand its branch network to 30 outlets by year-end. The new branch will offer deposit and lending products, including gold loans, business loans and housing loans.

Sri Lanka's rupee closed at 335.15/40 to the US dollar in the spot market (from 334.50/75 the previous day); bond yields were broadly steady and a Rs70bn Treasury bill auction is scheduled for Wednesday.

Secondary bond market yields held broadly steady, with the 15.06.29 maturity at 10.92% and other maturities trading around 10.60%-11.90%. Money-market liquidity surplus was Rs.44.16bn, overnight call/Repo averaged 9.21%/9.24%, and USD/LKR closed at 334.45/334.75.

Colombo's ASPI fell 0.48% to 22,253.52 as investor sentiment soured over renewed Middle East peace concerns. Only 51 stocks rose vs 164 declines; turnover was ~Rs1.2bn and foreign investors were net sellers of Rs154.6m; main negative contributors were JKH, SPEN, DFCC, COMB and ACL.

Sri Lanka rupee quoted at 334.40/335.00 to the US dollar on Tuesday, marginally weaker than the previous day, while shorter-tenor government bond yields edged lower (e.g. the 01.03.2030 bond quoted at 11.00/05% vs 11.00/10%).

The Central Depository System (CDS) will suspend non-operative client accounts in a four-phase program, starting 30 June 2026 for accounts inactive 15+ years and completing 31 January 2027 for accounts inactive 3+ years. Suspended accounts keep ownership and entitlements; reactivation via the CSE Mobile App or CDS website requires updated KYC and verification.

The CSE added ACL Cables, CIC Holdings and the voting shares of Commercial Bank to the S&P SL20 and removed LB Finance, with the changes effective 22 June.

Colombo Stock Exchange closed flat, with the ASPI up 0.01% at 22,256.49 and the S&P SL20 down 0.03% at 6,193.65. Top positives were LB Finance, National Development Bank, Aitken Spence and Nawaloka; declines came from Melstacorp, Central Finance, Sunshine and Windforce; turnover Rs 1.56bn.

Seylan Bank PLC has partnered with Sathosa Motors PLC to offer a dedicated leasing facility for ISUZU commercial and passenger vehicles, with 24-hour fast-track approvals, up to seven-year payment terms, competitive interest rates and vehicle discounts (LKR100,000 on trucks; LKR200,000 on double cabs) plus service/spare-parts benefits.

People’s Bank launched its 125th Cheque Deposit Kiosk at its Mid City Branch on 22 June 2026. The kiosks provide cheque imaging, e-receipts and digital endorsement, operate 24/7 and are the highest number deployed by any commercial bank in Sri Lanka.

Colombo Stock Exchange trended up, with the ASPI rising 0.27% (61.12 pts) to 22,314.64 on turnover of Rs.609.9m, led by capital goods (Rs.241.2m). Lee Hedges announced revised payment terms for its Rs.3.15bn acquisition of Lanka Realty Developments (Rs.1.1bn paid, Rs.2.057bn due within six months plus interest).

Deloitte Sri Lanka held a client session 'From Compliance to Capital' on using climate disclosure (SLFRS S1/S2) to boost resilience and access to capital, covering decarbonisation, Scope 1–3 emissions, assurance-ready data and sustainable finance.

Sri Lanka's rupee closed at 334.50/75 to the US dollar in the spot market, while government bond yields were broadly steady with most quoted maturities unchanged and a few minor upticks in longer-dated bonds (e.g. 15.06.2034 and 15.03.2035).