News & market updates

Colombo Stock Exchange ASPI rose 0.34% to 22,456.18 (up 75.53 pts) as turnover reached 2.42 billion rupees, with materials leading turnover at 1.4 billion. Top positive contributors were Melstacorp, Commercial Bank, HNB and DFCC, while LOLC and Prime Lands were top decliners.

Seylan Bank opened its newly relocated Boralesgamuwa branch at No. 49/1, Colombo Road, moving the longstanding branch to a larger, more central space to improve customer service and operational efficiency.

Union Assurance and Sampath Bank held the Sampath Bank Life Leads Annual Awards 2025 at Cinnamon Life, recognising top-performing Sampath Bank branch employees under their bancassurance partnership. Awards covered categories including Best Introducer, Best Branch, Best Regional Manager, Best Chief Manager and national top achiever.

Seylan Bank opened its newly relocated Boralesgamuwa branch at No. 49/1, Colombo Road to improve customer service with a larger, more central and revamped premises.

Amana Bank opened its 46th Self Banking Centre in Balangoda — its first in Ratnapura District — offering 24/7 cash withdrawal, cash deposit and cheque deposit services. The bank also distributed school stationery to underprivileged primary schools as part of the opening.

Banking leaders, including HNB and Commercial Bank executives, called for stronger governance, internal controls, cyber resilience and responsible AI use to future-proof Sri Lanka's banking sector at a Daily FT-ACCA-ICCSL webinar.

Sri Lanka GDP grew 5.1% year-on-year in Q1 2026, up from 4.7% in the previous quarter. Growth was led by industry (up 7.2%) with mining +19.5% and construction +16.3%, while services rose 3.4% driven by insurance (+22%), IT/BPM (+16.1%) and financial services (+12.8%); agriculture +1.1%.

Fitch says Sri Lanka’s new risk weights for gold loans (10% for <70% LTV; 40% for 70–100% LTV; 100% for >100% LTV) will raise average risk density to ~12% for banks and ~26% for finance firms and could cut finance companies’ Tier‑1 ratios by ~1pp to a little over 5pp, with Asia Asset Finance most affected.

Sri Lanka's rupee strengthened to 333.00/334.50 per US dollar from 335.50/336.00, and government bond yields fell sharply after news of a US‑Iran deal. Longer-dated yields eased notably — 15.12.2032 to 11.70/80% (from 12.25/40%) and 15.03.2035 to 12.05/25% (from 12.65/95%).

Sri Lanka's real GDP grew 5.1% year-on-year in Q1 2026 to Rs. 3,652,503 million (2015 prices). Growth was led by industry (+7.2%)—notably construction (+16.3%) and mining (+19.5%)—while services rose 3.4% (insurance, IT, financial services) and agriculture grew 1.1%.

Colombo Stock Exchange rose 3.43% as the ASPI gained 743.22 points to close at 22,380 on positive sentiment after a US-Iran deal. Top contributors included Sampath Bank, Commercial Bank, John Keells and Melstacorp, and Senkadagala Finance announced a 2.8 rupee dividend.

Nations Trust Bank’s proposed LKR15 billion Basel III-compliant subordinated debentures were assigned a final National Long-Term Rating of 'BBB+(lka)' by Fitch; the bank intends to use proceeds to strengthen Tier-2 capital, support loan-book expansion and reduce maturity mismatches.

Dividend · Rs 2.80 · XD Jul 31, 2026

Final dividend of LKR 2.8/share; XD 2026-07-31; record 2026-08-02; payable 2026-08-19; FY March 31, 2026

Parliament's Committee on Public Finance warned that transferring debt management from the Central Bank to the Public Debt Management Office has created gaps in public debt and government securities data that could fuel speculation and market distortions; CBSL says PDMO now has publication authority while CBSL continues to provide downloadable time-series.

Parliament’s Committee on Public Finance flagged weaknesses in Sri Lanka’s external sector statistics, saying tourism earnings are hard to measure and that informal forex flows and unauthorised foreign payment gateways are blind spots. CBSL said premiums have narrowed, invited money-transfer operators to register and said investigations into illegal payment gateway use are under way.

World Bank cut its global growth forecast to 2.5% for 2026, warned higher energy and fertiliser prices will raise inflation, and is making $50–60bn available immediately (scalable to $80–100bn over 15 months) to support vulnerable countries.

Foreign holdings of Sri Lanka’s rupee‑denominated T‑bills and T‑bonds rose by Rs.13 million to Rs.121.34 billion in the week to 11 June, ending a five‑week outflow streak; holdings are down Rs.19.96 billion year‑to‑date and represent about 0.66% of outstanding govt securities.

Fitch says the CBCSL directive raising risk weights on gold-backed loans will raise average risk density to ~12% for rated banks and ~26% for finance companies, cutting banks' CET1 by ~2–35bp and finance companies' Tier‑1 by about 1pp–>5pp. Asia Asset Finance, L B Finance, UB Finance, HNB Finance and MBSL are singled out as most affected.

Colombo Stock Exchange rose 3.17% midday Monday after news of a US‑Iran framework deal; banks led gains with Sampath at 146.25, Commercial Bank at 209.50 and Hatton National Bank at 405, driving the ASPI higher.

Alliance Finance Company PLC withdrew its planned Rs 1.5 billion five-year tier-2 listed debenture issue due to prevailing adverse market conditions; the company said it will consider proceeding when market conditions are more favourable.

Secondary bond market ended the week bullish as yields fell sharply across the curve after improved risk sentiment following reports of a potential US‑Iran peace deal. Weekly T‑bill yields rose (91-day to 10.09%), while Thursday's bond auction raised Rs.92.55bn (61.7% of offer) with mixed maturity outcomes.

Central Bank of Sri Lanka cancelled the registration of Co-operative Leasing Company Ltd as a Registered Finance Leasing Establishment effective 10 June 2026, barring it from undertaking new finance leasing business while allowing existing contracts to continue. CBSL cited repeated regulatory breaches and failure to comply with the NBFI consolidation framework.

Sri Lanka's rupee strengthened to 332.00/334.00 against the US dollar (from 335.50/336.00) and government bond yields fell sharply. Markets rallied after Pakistan announced a US‑Iran deal; selected bond quotes include 15.12.2032 at 11.50/70% (down from 12.25/40%).

Asian share markets surged and Brent crude fell about 4% to $83.80 after a tentative US–Iran deal eased supply concerns, reducing inflationary pressure and lessening the need for tighter policy as central banks meet this week; U.S. yields fell and the dollar weakened.

Nations Trust Bank renewed its partnership with the Wildlife and Nature Protection Society to continue sponsoring the WNPS monthly public lecture series on biodiversity and sustainability. The next lecture on 18 June will feature Dr. Prabath Jayasinghe presenting findings from the 30-day Nansen research voyage.

DFCC Bank PLC has partnered with Vision Care Optical Services to extend benefits to DFCC Garusaru senior citizen debit cardholders, including up to 15% discounts on selected eyewear and hearing aids and complimentary eye screenings and pressure tests nationwide.

The Sri Lanka Business Council UAE held a 35th-anniversary investment forum in Dubai on 11 June that drew 225 UAE business leaders and investors. Colombo Port City presented investment opportunities and speakers encouraged investment in tourism, hospitality, IT, logistics, manufacturing and renewable energy in Sri Lanka.