News & market updates

The Exporters Association of Sri Lanka elected Nalaka Ratnayake as Chairperson at its 29th AGM; the new Executive Committee includes representatives from CIC Holdings, Hayleys, Dipped Products, Hatton National Bank, Sampath Bank and Lion Brewery. Speakers urged faster trade digitalisation, lower export costs and improved logistics to boost competitiveness.

The Sri Lanka Institute of Directors will host the Sri Lanka Corporate Director Summit 2026 on 22 July at Cinnamon Grand Colombo focused on governance, reputation and sustainable leadership. Keynote speaker Vivek Sharma will discuss reputation risk and panels include Nestlé Lanka's MD and Commercial Bank of Ceylon Chairman Sharhan Muhseen.

Foreign investors bought a net US$23.2mn of Sri Lankan rupee government bonds in the week to July 16, lifting foreign holdings to Rs 176,561mn — the highest since July 27, 2023. The inflow comes amid a 100bp May policy-rate hike and recent rupee stabilization.

KPMG says Sri Lanka's credit rebound faces a major test after the Central Bank raised the policy rate by 100 basis points to 8.75%, a move expected to moderate private-sector credit growth. Lower fuel and vehicle imports, resilient remittances and stronger tax revenue are seen supporting a return to a current-account surplus and fiscal consolidation.

Colombo's ASPI fell 1.7% this week while turnover hit a 65-week low of about Rs. 722.64 million; top drags on the index included John Keells (JKH), PKME and NDB. Banking led turnover (notably Sampath Bank) and activity was concentrated in capital goods, food & beverage and energy names.

Rights issue · 1:10 at Rs 32.00

Rights issue (1:10) at LKR 32/share

Sri Lanka sold Rs12,000 million of treasury bills on tap at average rates of 10.13%, 10.27% and 10.20%, bringing total bills sold this week to Rs132 billion.

Sri Lanka's rupee was quoted at 336.26/30 to the US dollar on Friday, while government bond yields were broadly steady; near-dated and medium-term maturities were quoted around 11.10%–11.85%.

Treasury expects Sri Lanka's sovereign rating to be upgraded from CCC+ to B- by early 2027 amid fiscal consolidation. Officials said talks are underway with three major rating agencies and the government plans to return to markets to raise $1.5bn in 2027-28.

Commercial Bank of Ceylon Plc's Rs.20 billion Basel III-compliant Tier 2 debenture offer was oversubscribed on opening day, receiving applications for more than 200 million debentures and prompting the bank to close the offer. The bank may issue up to a further 100 million debentures in additional tranches and is awaiting Central Bank approval to include the issue as Tier 2 capital; basis of allotment will be notified to the CSE.

Secondary bond-market yields remained broadly steady with selected maturities trading between 10.53% and 12.10% and healthy transaction volumes. Money-market net liquidity surplus was Rs.143.41bn (SDFR deposits Rs.86.65bn), overnight rates ~8.95–8.98%, and USD/LKR closed at 336.20/336.30 (volume $37.02m).

Softlogic Finance (CRL.N0000) reported a financial year profit of approximately Rs.150 million and says its Capital Adequacy Ratio is about 61%. The company notes assets >Rs.7.5bn, a lending portfolio ~Rs.6.7bn, deposits >Rs.3.8bn and zero non-performing loans on new originations.

HNB General Insurance appointed Lakshman Silva as Non-Executive/Nominee Director and Sandra De Zoysa as Independent/Non-Executive Director to its board. The appointments are intended to strengthen governance and drive digital/CX transformation as the insurer scales its platforms and customer service architecture.

Sri Lanka stocks closed lower as the ASPI fell 0.20% to 21,405.41 and market turnover hit a 52-week low of Rs 722.6m. Banks led turnover at Rs 184.3m; Commercial Bank, RIL Property, Melstacorp and People's Leasing were among gainers while John Keells and Digital Mobility were among laggards, and oil prices rose on Gulf tensions.

Commercial Bank of Ceylon's Basel III Tier-2 debenture issue was oversubscribed with applications for over 200 million debentures worth Rs 20 billion against an initial Rs 10 billion offer. CSE indices traded lower (ASPI down 0.11% at 21,424.48) with banks leading turnover at Rs 54.4 million.

The George Keyt Foundation and the British High Commission will present "19th Century Views of Ceylon" at Westminster House from July 30 to Aug 1, 2026; British Airways is the primary partner and Nations Trust Bank is a supporting sponsor.

Colombo bourse snapped a three-day decline as the ASPI rose 0.14% to 21,447.57 with turnover near Rs.1.5bn and foreign net selling of Rs.26.9m; gains were led by DIAL, HAYC, CFIN, JKH and CTHR.

The Sri Lanka Corporate Director Summit 2026 will be held on 22 July 2026 at the Cinnamon Grand Colombo under the theme 'Future-Ready Sri Lankan Directors: From Compliance to Sustainable Growth.' Key speakers include Kalpana Morparia and local governance leaders such as Dr. Harsha Cabral (Chairman, Tokyo Cement) and Harsha Amarasekera (Chairman, CIC Holdings and Sampath Bank).

DMS Software Engineering implemented its DMS-IMAGO cheque image clearing platform at HSBC Sri Lanka, digitising cheque processing and improving controls, compliance and turnaround times.

Sri Lanka sold Rs15,000 million of Treasury bonds on tap at auction-set yields, bringing weekly bond sales to Rs165 billion; yields were 11.57% (2030), 12.04% (2034) and 12.58% (2037).

Sri Lanka's services PMI rose to 58.5 in June 2026 (from 56.9 in May), with growth driven by financial and professional services and gains in insurance. Employment and new business increased and firms expect stronger activity into the next quarter aided by tourism, though global uncertainties remain a risk.

PMI: Manufacturing at 53.0 and Services at 58.5 in June 2026, indicating continued expansion in both sectors. Manufacturing growth slowed with production led by food & beverages and firms citing labour shortages and longer supplier delivery times; services expansion was driven by financial/professional services and insurance, with tourism expected to boost activity.

Weekly Treasury bill auction sold the full Rs.120 billion offered as weighted average yields fell (91-day 10.13%, 182-day 10.27%, 364-day 10.20%). Secondary bond yields edged higher on Middle East tensions; net liquidity surplus was Rs.147.19bn and USD/LKR closed at 336.30/336.40.

Sri Lanka's Manufacturing PMI was 53 in June and the Services PMI 58.5, indicating continued expansion while manufacturing slowed from May; outlook for both sectors remains positive but downside risks persist from the Middle East conflict and global uncertainties.

DMS Software Engineering implemented its DMS-IMAGO cheque imaging and truncation platform at HSBC Sri Lanka, digitizing cheque clearing to improve processing accuracy, reduce operational risk and shorten turnaround times.

Colombo Stock Exchange closed higher as the ASPI rose 0.14% (29.77 pts) to 21,447.57 and the S&P SL20 gained 0.29% to 6,006.07, with market turnover Rs 1.49bn and banks leading turnover at Rs 74.9m. Bukit Darah declared a first interim dividend of Rs 5.73 per share, entitlement July 27, 2026.

HNB PLC awarded an HNB Visa Club Infinite cardholder a fully paid experience for two to the FIFA World Cup 2026 Final, selected via a raffle among cardholders who met the promotion's minimum spend requirement.