News & market updates

Sri Lanka's rupee closed at 336.10/20 to the US dollar on Tuesday, versus 336.20/35 the previous day. Government bond yields edged mostly up on select tenors: 2028 and 2030 rose slightly, 2033 fell, while several issues were flat.

Sri Lanka's Cabinet approved designating the Securities and Exchange Commission (SEC) as the official regulator for virtual assets and Virtual Asset Service Providers (VASPs). The SEC, alongside the Central Bank's FIU and the Inland Revenue Department, will enforce AML/CFT, mandatory transaction reporting and VASP registration to bring offshore and P2P crypto trading under formal oversight.

Sri Lanka approved disposal of SLTB's accumulated scrap metal for Rs195.89 million, awarding procurement contracts to six industrial bidders. Ashok Steel Industries won the largest share with Rs89.42m, followed by S.R. Steel (Rs47.58m) and IWW Steel Industries (Rs39.43m).

Cabinet approved awarding about Rs15 billion in local funding to construct Phase 1 of the Ruwanpura Expressway in 2026; the RDA will complete procurement and select a contractor to build the Kahathuduwa-Ingiriya stretch, including a system interchange at Kahathuduwa linking to the Southern Expressway.

John Keells Holdings reported Group EBITDA up 26% to Rs.16.35 billion for Q1 ended June 30, 2026. Profit attributable to equity holders was Rs.62 million (vs a Rs.804 million loss a year earlier) and underlying profit excl. net exchange losses was Rs.1.95 billion, led by Transport, Property and Consumer Foods, with Nations Trust Bank supporting Financial Services performance.

Dividend · Rs 0.72 · XD Aug 7, 2026

Final dividend of LKR 0.72/share; XD 2026-08-07; record 2026-08-10; payable 2026-08-28; FY 2025/2026

Cabinet approved creation of a 100% Treasury Limited (Public) Company under the Ministry of Transport to manage, operate and develop Sri Lanka's multimodal transport hubs; two hubs are operational (Makumbura, Kadawatha) and two (Anuradhapura South, Kandy) are under construction.

Sri Lanka's cabinet approved a proposal to amend the Constitution and the Judicature Act to raise the statutory retirement age of judges, a move seen as enabling extension of the sitting chief justice's term. The Bar Association and the Judicial Service Association have urged consultation and opposed extending tenure.

Colombo Dockyard (DOCK.N0000) signed a contract with Global Marine Systems (UK) to build a 100m cable laying and repair vessel, due for delivery in September 2029. The ultra-modern diesel-electric vessel (14.5 kn) accommodates 76, has three cable tanks and meets Bureau Veritas CLEANSHIP standards.

SLAMERP welcomed the USTR decision to apply a 10% tariff to Sri Lanka under Section 301, saying the outcome preserves the competitiveness of Sri Lankan rubber products in the US market. The association credited sustained government engagement for securing the lower rate.

ODEL PLC has disclosed that construction on Zone 1 of the Odel Mall Project in Colombo 07 has re-commenced and is expected to be completed within 1½-2 years. The company said Zone 2 (100-perch) will be held for future development and provided the update to curb speculation.

Secondary bond market opened subdued ahead of a Rs. 140 billion Treasury Bill auction today and a Rs. 250 billion Treasury Bond auction on Thursday. Yields edged higher on selected maturities and several block trades supported transaction volumes.

Sri Lanka's apparel sector must close compliance and utilization gaps ahead of re-applying for the EU's GSP+ under tougher rules effective Jan 1, 2027; the industry's GSP+ utilization is only 49-59%. The World Bank's July 2026 reclassification to upper-middle-income and stricter EU enforcement increase urgency to boost domestic fabric capacity and show demonstrable reforms or risk losing preferences.

S&P affirmed Sri Lanka's sovereign ratings at 'CCC+/C' with a stable outlook on July 27, 2026, and upgraded the transfer and convertibility assessment to 'B-'; it flagged a heavy interest-to-revenue burden (~45.6%). The agency noted resilient GDP growth but vulnerabilities from high debt, external shocks (Middle East war, Cyclone Ditwah) and a 100bp policy-rate hike to anchor inflation.

Oil prices fell over $1/bbl after the US and Iran paused attacks, with Brent down $1.47 (1.66%) to $86.89 and WTI down $1.45 (1.76%) to $81.16, their lowest since July 20. Analysts warn supply risks remain as Red Sea traffic has dropped and tensions could resume.

SLPMA President Dinesh Athapaththu urged a national policy push to transform Sri Lanka's pharmaceutical manufacturing into a major export industry, calling for a multi-stakeholder task force, faster regulation and investment incentives. He outlined five strategic priorities including quality, innovation, skills collaboration and building a supporting pharma ecosystem.

Parliament's Committee on Public Finance warned the PDMO lacks sufficient expertise to manage Sri Lanka's Rs.31.1 trillion government debt and urged significant strengthening of its technical, governance and operational capacity. MPs requested a Training Needs Assessment within two weeks; the PDMO has an approved cadre of 80 posts with about 60 filled and has had IMF technical assistance.

S&P Global affirmed Sri Lanka's long- and short-term sovereign ratings at 'CCC+/C' with a stable outlook and revised the transfer and convertibility assessment to 'B-'. The agency warned higher energy costs and Middle East risks could pressure growth and external balances, and forecasts 3.8% GDP growth in 2026.

S&P Global Ratings on July 27, 2026 affirmed Sri Lanka's long- and short-term foreign and local currency sovereign ratings at 'CCC+/C' with a stable outlook and revised the transfer and convertibility assessment to 'B-' from 'CCC+'. The agency cited strong revenue growth supporting fiscal repair but warned that external risks could weaken the external position and funding outlook.

Hambantota International Port Group said the port handles over 50,000 vehicles, with about 1,278 stored over three months and 581 over a year, and clarified its free storage rules (10 days for imports, 21 days for transshipments) while urging timely clearance.

Sri Lanka's rupee was quoted at 336.15/25 to the US dollar on Tuesday, slightly stronger than 336.20/35 the previous day, while local government bond yields were broadly steady with small moves across maturities. An auction of Rs.140,000 million T-bills is ongoing; TT USD rates were 331.75/340.75.

Hambantota International Port Group said it handles over 50,000 vehicles on site and that only 1,278 locally imported vehicles have remained over three months and 581 for more than a year, most tied to pre-2025 import-ban legacy cases. HIPG defended its storage rules (10 days free for imports, 21 days for transshipment), saying charges, waivers and concessions are used to encourage timely clearance and manage limited port space.

FinTech Forum Sri Lanka board director Dhanika Perera urged building a stronger fintech ecosystem to drive the digital economy, calling for industry-wide collaboration on regulation, interoperability, financial inclusion and accelerated digital payment adoption.

DFCC Bank has introduced Sri Lanka's first ATMs and cash recycler machines offering transactions in eight languages, now available at Bandaranaike International Airport and DFCC locations in Hiriketiya, Ella and Arugam Bay, with wider rollout across its network planned.

John Keells Holdings (JKH.N0000) will launch Wendy's in Sri Lanka as part of a Consumer Foods expansion; franchise agreements and preliminary work are complete and the first outlet is expected by December 2026.

Colombo Stock Exchange closed higher, the ASPI rose 0.20% (41.92 pts) to 21,229.14 and turnover was Rs 2.02bn with retail leading at Rs 1.04bn. SANASA Life said escrow proceeds were released and invested in government securities, and Odel restarted construction on Zone 1 of its mall with completion expected in 1.5-2 years.

Prime Sports Hub officially opened a new indoor sports complex in Thalahena, Malabe, featuring Sri Lanka’s first premium cushioned tournament-grade acrylic pickleball courts and fully equipped indoor cricket nets. The facility will offer coaching, group training, school and corporate bookings, and tournaments.

The Class of 2001/2002 of the University of Colombo Faculty of Science launched the 25FOR25: Empowering Futures Scholarship Program and awarded 25 students two-year merit-cum-need scholarships, with alumni mentoring and support.

CSE Clear, the Colombo Stock Exchange's fully owned CCP, marks its first anniversary after clearing and settling LKR 1,188 billion across more than 8 million trades while implementing a margining framework, a Contributory Guarantee Fund and enhanced risk monitoring to strengthen post-trade resilience.

TECNO launched the CAMON 50 Pro in Sri Lanka, priced at LKR 159,999, featuring AI 60X Super Zoom, SuperZoom FlashSnap, a 50MP Sony Ultra Night Camera, IP68/IP69K water resistance, 6.78" AMOLED display and a 6500mAh battery.