News & market updates

L B Finance PLC reported a pre-tax profit of Rs. 25.01 billion for the year ended 31 Mar 2026 (up 22%) and PAT of Rs. 13.67 billion (up 27%). The company expanded loans to Rs. 312.66 billion, fully consolidated Associated Motor Finance (AMF) and is nearing regulatory approval for entry into the Philippines.

Secondary bond market ended the week bearish as yields rose across the curve (trades ranged about 11.95%–13.30%) and foreign holdings fell by Rs.4.77bn to Rs.121.33bn. Pressure came from a 100bp policy rate hike, rising T‑bill yields, tighter liquidity and FX weakness (USD/LKR ~335.75/336.25).

The Central Bank of Sri Lanka said the financial system remained resilient in Q1 2026 despite rising risks, with banking credit up 24.4% YoY and Stage 3 loans down to 9.4%. It imposed a 70% LTV cap on gold loans and cut vehicle LTVs by 10pp from 25 May, noted $103.4m foreign outflows and a 100bp policy-rate hike driving higher yields.

Sri Lanka rupee quoted at 336.25/35 to the US dollar on Monday (was 335.50/336.25), while bond yields were largely steady—01.08.2030 at 12.10/40% and 15.03.2035 at 12.95/13.05%—and the All Share Price Index fell 0.38%.

Sampath Bank opened its Colombo Port City branch, the first banking transaction in the development, offering self-service CRM, local and foreign currency banking, inward investment accounts, trade finance, treasury, remittances and digital banking services for residents and non-residents.

Sampath Bank PLC opened its Colombo Port City branch, marking the first banking transaction in the development and offering CRM self-service, local/foreign currency accounts, trade finance, treasury, remittances and digital banking for residents and non-residents.

First Capital Holdings PLC secured multiple global and local sustainability affiliations in FY2025/26, including SSCI Certificate of Acceptance and becoming Sri Lanka’s first investment institution to join UNGC, WEP and PCAF. The firm also installed rooftop solar, advanced PCAF baseline work and progressed SLFRS S1/S2 readiness.

SDB Bank has modernised its core digital banking infrastructure with IBM Power servers, IBM FlashSystem storage and IBM Cloud Pak for Business Automation to boost agility, operational resilience and enable scaling of AI-driven services.

Commercial Bank of Ceylon PLC opened a full-service branch in Port City Colombo (Building 04, Area 02) to serve corporates, investors, businesses and retail customers. The branch provides corporate and retail banking, trade finance, FX, digital banking and 24/7 self-service (CRM/ATM).

Sri Lanka's worker remittances rose 32% to US$847 million in May 2026. Remittances were US$3,909.7m in the first five months (up 26% y/y), driven by Middle East tensions, rupee depreciation and a shift from informal to formal banking channels after central bank policy changes.

Foreign investors sold about US$14.7mn of Sri Lanka government securities in the week to June 4 despite a 100bp hike in the Central Bank's Overnight Policy Rate. The rupee has fallen ~7.8% YTD through June 5 and four-week net outflows total around US$65mn amid higher fuel imports and Middle East risks.

Sri Lanka's Central Bank sold a net US$211.3mn in May (bought US$12mn, sold US$223.3mn) as the rupee came under heavy downward pressure and touched a four-year low. Gross official reserves nonetheless rose 1.7% to US$6,873mn by end-May amid higher fuel import bills and dollar demand.

SLCERT warned of a rise in AI-generated deepfake videos used to promote investment scams, reporting 360 cyber-related financial fraud complaints so far this year. The agency said fake videos featuring the President, Prime Minister and other public figures link to fraudulent sites that steal money and personal data.

The Colombo ASPI fell 2.54% for the week (S&P SL20 down 2.2%), wiping about Rs. 206 billion off market capitalisation. Major negative contributors were COMB, HAYL, JKH, WIND and SPEN, with turnover near Rs. 2.98 billion.

HNB PLC has signed an MoU with Hayleys Agriculture Holdings to expand leasing solutions for Kubota and Agrotech agricultural machinery across Sri Lanka. The partnership will finance tractors, combine harvesters, power tillers and rice milling machines to boost farm mechanisation.

Dividend · 1:36.97479 at Rs 22.00 · XD Jul 1, 2026

Dividend; XD 2026-07-01; record 2026-07-01; payable 2026-07-09; FY 2025/26

Deputy Finance Minister Anil Jayantha said Sri Lanka's rupee is returning to a normal state through market forces, with the Central Bank's buying rate between 320–330 after a near four-year low of 354; he cited export, tourism and remittance inflows and interventions stabilising fuel-driven fluctuations.

Rights issue · 2:9 at Rs 5.50 · XD Jun 2, 2026

Banks will raise annual credit card interest rates from 26% to 28% effective July 1 after the Central Bank raised the policy rate by 100bps. Active cards increased to 2,215,853 by Q1 2026 and outstanding credit card balances rose to Rs. 194,105 million by March 31, 2026.

Sri Lanka’s rupee weakened to 336.00/338.00 vs the US dollar in the spot market (from 336.90/337.50), while bond yields were largely steady; government bonds quoted e.g. 01.07.2028 at 11.85/12.00, 01.08.2030 at 12.25/12.35 and 15.03.2035 at 13.20/13.30. ASPI opened up 0.20% at 21,804.

State-owned enterprises' combined profit fell 17.6% to Rs. 444.4 billion in 2025, driven by the Ceylon Electricity Board's swing to a Rs. 38.7 billion loss. Excluding CEB, the remaining 50 SOEs posted a 21.5% rise in profits to Rs. 483.2 billion, with Bank of Ceylon the top contributor and several SOE and power-sector reforms advanced.

Secondary bond market remained subdued with yields edging higher after the Treasury Bill auction; short- to mid-dated maturities traded around 11.95%-12.00% while longer-dated lines traded up to about 13.30%. Money-market rates were elevated (call 9.16%, REPO 9.20%), net liquidity surplus Rs.111.94bn, and USD/LKR closed at 336.75/337.50.

Colombo market fell sharply, ASPI down 1.14% (250.79 pts) to 21,760.31 and the S&P SL20 down 1.08% to 6,031.73. Foreign investors were net sellers of Rs.92.25m and higher interest rates weighed on investor sentiment.

Colombo Stock Exchange closed flat with the ASPI down 0.07% at 21,744; market turnover was Rs.2.98bn, led by capital goods at Rs.1.26bn. HNB Finance issued a notification on rights issue application procedures for shareholders (record date June 3) and its shares closed down 1.11% at Rs.8.90.

Commercial Bank of Ceylon PLC opened a full-service branch in Port City Colombo (Building 04, Area 02) to serve corporates, investors, businesses and retail customers, offering corporate and retail banking, trade finance, treasury/FX, digital services and 24/7 ATM/CRM access.

Regional Development Bank posted 1Q FY2026 profit after tax of Rs.1.08 billion, up 187.3% from Rs.377 million a year earlier (PBT Rs.1.87 billion, +103%). The bank reported NIM of 6.9%, loans of Rs.323bn, deposits of Rs.286bn, CET1 9.59% and LCR 135%.

Commercial Bank of Ceylon PLC co‑organised an EDB awareness seminar on export procedures, costing/pricing and financial facilities in Kurunegala on 27 May 2026, attended by 59 SMEs and 16 Export Development Officers. The session covered export documentation, pricing strategies and bank financing options for exporters.