News & market updates

Sri Lanka's rupee weakened, closing at 313.80/314.50 to the US dollar, while government bond yields were broadly steady (e.g., 15.02.2028 at 9.35/65%). Some longer-dated yields edged down — 15.12.2029 to 9.80/95% and 01.06.2033 to 10.80/90%.

ADB President Masato Kanda met CBSL Governor Nandalal Weerasinghe on 23 June to discuss current economic developments, ongoing reform efforts and central bank policies. The meeting included senior Sri Lankan officials and ADB representatives during Kanda's three-day visit.

The Middle East conflict threatens Sri Lanka’s migration and remittance flows — about half of remittances originate in the ME, and up to ~19,980 foreign employment opportunities could be lost in a month if disruptions continue. This would pressure foreign reserves, import capacity, unemployment and consumption, slowing the economic recovery.

Sri Lanka's rupee recovered to 313.00/50 against the US dollar and bond yields opened lower as oil prices fell, with the Central Bank keeping the Overnight Policy Rate unchanged at 7.75%. The ASPI was down 2.90% and an 80,000 million rupee T-bill auction was ongoing.

The Central Bank of Sri Lanka kept the Overnight Policy Rate at 7.75% and said low inflation (1.6% y/y in Feb) provides space to absorb higher energy costs, forecasting inflation will reach 5% in Q2-2026. It noted USD 7.3bn reserves, some rupee depreciation pressure and risks to tourism, trade and remittances.

Monetary Policy Board kept the Overnight Policy Rate unchanged at 7.75%. Inflation was 1.6% y-o-y in Feb 2026 and is expected to reach 5% in Q2-2026; the board cited higher global energy prices, Middle East conflict risks, and FX reserves of USD 7.3bn as key considerations.

Secondary government bond yields swung amid Middle East tensions and ahead of the Central Bank's 2nd Monetary Policy Review due today, with the 15.02.28 maturity at 9.50% and longer maturities trading up to 10.90%. The weekly T-bill auction offers Rs.80bn (below ~Rs.87.17bn maturing) and USD/LKR closed around 314.00/314.40.

Sri Lanka's rupee weakened to 314.20/40 per USD from about 313.00/314.00, and government bond yields edged up across maturities (e.g., the 15.10.2028 bond closed at 9.60/80% vs 9.45/65%).

Sri Lanka's rupee weakened to 313.50/314.50 per USD while government bond yields edged higher (e.g. 2029 bond ~9.80–9.85%) and the All Share Price Index fell 3.61% to 21,100.98, with the S&P SL20 down 3.84%.

Secondary Treasury bond yields initially rose on external pressures but reversed and closed lower after Brent crude plunged >10% amid US de-escalation; selected maturities traded in ranges ~8.57%-11.23% and secondary turnover was Rs.23.63bn. Money markets showed a net liquidity surplus of Rs.240.27bn and the USD/LKR spot closed around Rs.313.00/314.00.

Essential food importers warn retail prices could rise 10–20% ahead of the Sinhala and Tamil New Year as higher bunker fuel, freight and war-risk insurance costs plus a weakening rupee lift landed costs, while assuring there are currently no shortages.

Sri Lanka's rupee weakened to 313.00/314.00 per USD from 311.80/312.00, while government bond yields recovered and oil prices fell below $100 after the US announced a pause in planned strikes on Iran.

Sri Lanka's rupee weakened to 312.50/313.50 per USD on Monday from 311.80/312.00 on Friday, while government bond yields opened largely steady (e.g. 15.06.2029 at 9.70/80%, 15.12.2029 at 9.85/95%). The ASPI fell 2.01% to 20,225.08.

Economist Talal Rafi warned the Middle East war could complicate Sri Lanka's debt path as IMF program plans boost external reserves from ~$8.9bn to $13.4bn by end-2027 and envisage a $1.5bn ISB in 2027, with annual external debt servicing rising from $2bn to $3bn; he noted reform-dependent opportunities in renewables and data centres.

Secondary government bond yields rose sharply across the curve last week (selected tenors up 20–30bps; long-end approaching ~11%) as geopolitical risk, higher global rates and oil gains drove selling. T-bill auction rates held, foreign holdings fell by Rs 1.38bn, and USD/LKR closed ~Rs.311.85/312.00.

Speakers at an OPA seminar warned the Middle East conflict will raise global energy prices, strain fuel supplies (fuel ≈20% of Sri Lanka's import bill), and hit tourism and remittances (≈40% from the Middle East), urging price reforms, renewables, maritime and cyber security upgrades.

A 25-member delegation from the Central Bank of Sri Lanka attended a week-long Capacity-Building Program on “Financial Frontiers – Innovation, Resilience and Internationalisation” at the Reserve Bank Staff College, Chennai from 2–6 March 2026. The program covered financial innovation, reserve management, currency internationalisation, payments and fintech regulation to strengthen central bank competencies and India–Sri Lanka financial cooperation.

Sri Lanka's rupee weakened to 311.80/312.00 per US dollar on Friday from 311.50/65 the previous day. Most government bond yields fell, for example the 15.02.2028 bond closed around 9.20–9.35% and the 01.06.2033 around 10.60–10.85%.

Sri Lanka’s rupee was quoted at 311.50/80 to the US dollar, slightly weaker; government bond yields largely stabilized with mixed moves across maturities. The All Share Price Index rose 0.82% to 20,429.62.

Secondary Treasury bond yields rose sharply by about 20–30 bps across the curve, with several maturities trading up to c.11.12% and total secondary Treasury turnover of Rs.51.91bn on 18 March. Money-market net liquidity surplus was Rs.283bn (CB drained Rs.100bn; SDFR deposits Rs.183.12bn) and USD/LKR spot closed near 311.50/311.65.

An IMF team will visit Colombo from March 26 to April 9, 2026 to conduct combined fifth and sixth reviews of Sri Lanka’s EFF, and completion could unlock about US$700 million in tranches. The reviews follow delays due to Cyclone Ditwah and will cover fiscal response, monetary policy and financial-sector stability.

An IMF staff team will visit Sri Lanka from March 26 to April 9, 2026 to conduct the combined 5th and 6th reviews of the EFF-supported reform programme and will report findings at the mission's conclusion.

Sri Lanka's rupee closed at 311.50/65 per US dollar (weaker from 311.30/50) and government bond yields rose across the curve — e.g., 15.02.2028: 9.25-9.40% (from 9.15-9.25%), longer-dated yields up to about 11.00%.

Weekly T‑Bill auction was undersubscribed, raising Rs.60.79bn (50.66% of Rs.120bn) while weighted average yields held at 7.61% (91d), 7.91% (182d) and 8.23% (364d). Secondary bond yields rose amid the Middle East conflict and high oil prices; net liquidity surplus was Rs.341.21bn and USD/LKR closed at 311.30/311.50.

Sri Lanka's rupee was quoted at 311.25/40 per US$ while government bond yields rose across tenors (e.g., 01.07.2028 around 9.30-9.35%) as oil topped $110 after the Iran-Qatar strike; the ASPI fell about 1%.

Sri Lanka's rupee closed at 311.30/50 to the US dollar, slightly weaker, while government bond yields edged up — for example the 01.07.2028 yield rose to 9.25/35% and the 15.12.2029 yield to 9.75/80%.

Sri Lanka's economy grew 4.8% in Q4 2025 and 5.0% for the full year, supported by lower inflation and exchange rate stability. Industry expanded 7.8% in 2025 while agriculture rose 1.4% and services 3.3%, with falling interest rates and some private credit expansion.

Sri Lanka's rupee strengthened to 311.25/35 per US dollar while bond yields were broadly steady and a 120,000 million rupee Treasury bill auction was ongoing. The ASPI opened up 0.79% at 20,578.50.

Sri Lanka's economy expanded 5.0% in 2025, with GDP at constant prices rising to Rs. 13,128,577 million. Industry led growth at 7.8% while services grew 3.3% and agriculture 1.4%; authorities cited easing interest rates, a relatively stable exchange rate and stronger construction, manufacturing, financial services, IT and tourism activity.

Sri Lanka's economy expanded 5.0% in 2025, with Q4 growth slowing to 4.8% (from 5.4% in Q3). Industry led the expansion (7.8%) driven by construction, mining and manufacturing, while services grew 3.3% and agriculture 1.4%.