News & market updates

Commercial Bank of Ceylon launched 'ComBank GIG+', a specialised account for freelancers and digital earners to receive foreign currency earnings (including PayPal-linked withdrawals) in USD, EUR, GBP, AUD or LKR. The product includes first-year fee waivers and preferential FX rates to support access to credit and other services.

A seminar on recent mid-year tax reforms will be held on 24 June 2026 at Cinnamon Lakeside, covering increases to CGT, criminalisation of tax offences, new income tax calculations, expanded CGIR powers, digital VAT and lower VAT/SSCL thresholds. It is targeted at hotel management, banking/finance compliance and tax professionals.

People’s Bank opened two new 24/7 ATMs at Jaffna Teaching Hospital and the Urban Development Authority premises in Jaffna, providing round-the-clock cash withdrawal access.

People’s Bank opened a new Service Centre in Kotawila offering digital banking services, including an ATM that provides cash withdrawals 24/7/365.

NDB Wealth Management Ltd. (part of the NDB Capital Group) held its Annual Sales Excellence Awards Night 2025 at Cinnamon Life Colombo to recognise top-performing sales teams and partners, highlighting its growth and partnership with AIA Insurance Lanka.

Hatton National Bank (HNB.N0000) marked five years of using Nucleus Software’s FinnAxia platform, adopted in 2021 to modernize its corporate transaction banking; the platform now supports LankaPay rails and multiple corporate payment services and averages over 3,000 daily users.

The Central Bank of Sri Lanka said Kasagala Green Plantation is not regulated by CBSL and is investigating whether the company unlawfully accepted deposits under the Finance Business Act No. 42 of 2011. CBSL also urged media to verify advertisers and interviewees that may be soliciting deposits.

Colombo market rebounded as the ASPI rose 1.73% (367.41 pts) to 21,637.43 and the S&P SL20 gained 1.55% to 6,027.05. Turnover was below Rs.2bn with foreign investors net buyers of Rs.24.4m; HNB, COMB, JKH, DFCC and RIL were key positive contributors and banks led turnover (25%).

The rupee ended the week firmer, closing at Rs.335.50/336.00 after the Central Bank cut the period for exporters to convert proceeds to 30 days from 90 to boost FX supply. It had strengthened to Rs.332.25/333.00 midweek after the move but gave up part of those gains before finishing the week firmer than early-week lows.

National Development Bank PLC suffered an internal Rs. 13.2 billion fraud that went undetected, prompting a parliamentary probe that blamed Central Bank oversight failures and drew IMF demands for regulatory and AML/CFT reforms. The Central Bank has retained Deloitte India for a forensic audit with an interim report due in two weeks and a final report by July 18.

Daily FT–ACCA and ICCSL host a webinar titled "Future-Proofing the Banking Sector" today (13) from 4:00 p.m., with keynotes from Commercial Bank CEO Sanath Manatunge and Hatton National Bank CEO Damith Pallewatte; the session will be broadcast live on partner Facebook pages and YouTube.

Sri Lanka's rupee closed at 335.50/336.00 per USD on Friday and government bond yields fell sharply (e.g. 15.02.2028 at 11.25/40%, 01.08.2030 at 11.90/12.05%, 15.12.2032 at 12.25/40%, 15.03.2035 at 12.65/95%). Dealers attributed the move to Donald Trump's announcement.

Sri Lanka will launch the National Export Development Plan (NEDP) 2026–2030 targeting $36 billion in export revenue by 2030, developed by the Export Development Board with ADB technical assistance. The plan sets horizontal enablers (trade facilitation, trade finance, supply chain, ESG) and eight priority verticals including electronics, digital services, processed foods, auto components, rubber, minerals, marine and spices.

ADB is deploying $4 billion to help countries including Sri Lanka manage impacts from the West Asia conflict, with about $3 billion requested by governments and $1 billion for trade finance for energy and food imports. Support includes policy-based loans, countercyclical financing, rapid repurposing of portfolios and emergency assistance.

Sri Lanka sold Rs92.55 billion of 2030 and 2032 government bonds — Rs44.95bn of the 15 May 2030 bond at an average yield of 11.65% and Rs47.59bn of the 15 Dec 2032 bond at 12.69% — while bids for the 2037 issue were not accepted.

Sri Lanka's rupee strengthened to 335.50/336.00 per US$ while government bond yields fell across maturities (e.g. 01.07.2028 quoted at 11.40/70% versus 11.75/85% previously) amid increased secondary-market trading.

World Bank says Middle East conflict will slow global growth to 2.5% in 2026 (the lowest since COVID-19) and is ready to provide up to $100 billion to affected countries over 15 months. It warns higher energy prices (Brent ~ $94/bbl in 2026), rising inflation and borrowing costs, and downside risks that could cut growth to 1.3% if disruptions worsen.

A Deloitte forensic audit is probing a Rs. 13.2 billion fraud at National Development Bank (NDB); an interim report is due next week and the final report on 18 July. CBSL says NDB still meets capital and liquidity requirements while supervision is under scrutiny.

Fitch revised its 2026 global sovereign sector outlook to 'deteriorating' from 'neutral', citing spillovers from the US‑Iran war that will weaken GDP, raise inflation and push up bond yields. Fitch said Greater China is the only region upgraded to 'neutral' due to strong exports and lower energy exposure.

The rupee weakened to Rs. 335/337.50 in the interbank spot market after giving up part of Wednesday's gains (Wednesday close: Rs. 332.25/330). The midweek rebound followed the Central Bank tightening rules for exporters, cutting the conversion window to 30 days from 90.

Citizens Development Business Finance PLC (CDB) reported FY2025/26 Profit After Tax of Rs. 4.5 billion and total assets of Rs. 214.7 billion, surpassing the Rs. 200 billion milestone. Lending rose 53% to Rs. 169.2 billion, NPL ratio improved to 1.53%, the Board declared a Rs. 1.25 billion dividend and completed a one-for-ten share subdivision.

Rs.150 billion Treasury Bond auction delivered mixed results — weighted average yields came in below expectations but the offered amounts were not fully raised and the longest 01.07.37 maturity was rejected. Secondary market yields eased after the auction, net liquidity surplus was Rs.66.62bn, overnight call/repo ~9.2%, and USD/LKR closed at 335.00/337.50.

Sri Lanka sold Rs3,510 million of on-tap Treasury bills at average yields of 10.09% (3-month) and 10.27% (6-month), bringing total bills sold this week to Rs75,254 million; settlement is June 12.

Sri Lanka's CSE closed up with the ASPI rising 1.75% to 21,642.95 after US President Trump said he cancelled planned strikes on Iran. Banks led turnover and several banks and blue-chips rose, while Dialog Axiata passed AGM resolutions including a final dividend and its shares closed up.

Deloitte Sri Lanka held a 27 May 2026 client session urging climate disclosure as a driver of business resilience and access to capital. Speakers covered operationalising SLFRS S1/S2, climate risk and scenario analysis, decarbonisation, assurance-ready data and sustainable finance.

Colombo Stock Exchange ASPI rose 1.68% (up 357.08 pts) to 21,627.10, with the S&P SL20 up 1.55% as banks supported gains. Market turnover was Rs.666m led by real estate; Colombo Fort Investments and Colombo Investment Trust listed scrip-dividend shares effective June 12, 2026.

CG Corp Global chairman Binod Chaudhary highlighted the group's Sri Lanka footprint, noting it holds a majority stake in Union Bank of Colombo and operates multiple hospitality properties including the Taj Samudra. He also cited a BYD agency partnership with John Keells and a cement feasibility study.

Citizens Development Business Finance (CDB.N0000) reported FY2025/26 Profit After Tax of Rs. 4.5 billion and total assets of Rs. 214.7 billion, surpassing the Rs. 200 billion milestone. The board declared a Rs. 1.25 billion dividend, completed a one-for-ten share subdivision, saw lending rise 53% to Rs. 169.2 billion and NPLs fall to 1.53%.