News & market updates

Sri Lanka's rupee was flat at 336.20/30 to the US dollar while government bond yields edged slightly higher; key quotes: 15.12.2029 at 11.20/30, 01.08.2030 at 11.60/63, 15.10.2030 at 11.62/68 and 15.12.2032 at 12.05/10 percent.

Sri Lanka sold Rs14,000 million of Treasury bills on tap at average rates of 9.95%, 10.24% and 10.20%, bringing this week's total T-bill sales to Rs154 billion. Market subscription for the tap sale was Rs84,810 million.

Secondary bond market yields remained broadly steady, with maturities trading between about 10.05% (15.12.26) and 11.53%-11.55% (01.07.30). The money market had a net liquidity surplus of Rs.136.54bn (Rs.129.04bn at SDFR 8.25%), and USD/LKR closed at Rs.336.15/336.25 on $104.35m volume.

Sri Lanka's rupee closed at 336.20/30 to the US dollar (from 336.35/40), while government bond yields were broadly steady, with nearby maturities trading roughly between 10.30% and 12.15%.

Sri Lanka rupee quoted at 336.30/40 to the US dollar in the spot market; bond yields were broadly steady, with quoted maturities around roughly 11.20% (2029) up to about 12.75% (2037).

NDB reported Q2 2026 standalone post-tax profit of LKR 3.01 billion and 1H 2026 post-tax profit of LKR 4.83 billion, with operating profit before taxes of LKR 9.50 billion after recognising a LKR 2.55 billion fraud impact. Excluding the fraud, 1H profit would be LKR 6.21 billion; revenue grew 12.8%, Stage 3 coverage improved to 62.9%, and CET1/Tier 1 ratio was 9.7%.

CBSL held the policy rate at 8.75% after its Monetary Board review, citing Middle East-driven commodity price shocks; headline inflation rose to 6.8% YoY in June 2026. The bank said inflation will remain above the 5% target in the near term, stands ready to act, and noted reserves of $6.45bn with some rupee stabilisation.

National Development Bank PLC reported operating profit before taxes on financial services of Rs. 9.5 billion and post-tax profit of Rs. 4.83 billion for 1H 2026 after recognising Rs. 2.55 billion of fraud-related losses (part of a revised total Rs. 13.58 billion). Excluding the fraud, 1H post-tax profit would have been Rs. 6.21 billion; CET1 9.7%, CAR 15.3% and LCRs >163%.

CBSL Governor said private sector credit expanded 27.8% year-on-year in the first five months of 2026, with outstanding private credit at Rs.11.04 trillion in May. He said the 100-basis-point policy rate hike in May and other measures are expected to gradually moderate credit growth and demand pressures.

Colombo market rose after the Central Bank held policy rates steady; ASPI +0.02% to 21,149.56 while S&P SL20 fell 0.21%. SEYB, PKME, CARG and SEMB were main positive contributors as real estate management & development drove 65% of turnover with crossings in ONAL; foreigners net-sold Rs.241m.

91-day Treasury bill yield fell 18bp to 9.95% at the weekly auction as the full Rs.140 billion offered was raised. Money market liquidity rose to Rs.175.20bn and USD/LKR closed about 336.25/336.35.

Union Bank of Colombo (UBC.N0000) hosted Pensioners' Day and launched a competitive pension loan of up to Rs. 8 million at the bank's lowest interest rates, including Rs. 30,000 in annual PickMe rides for government pensioners. The event included partners such as Nawaloka Hospitals providing health screenings and services.

Sri Lanka's rupee closed at 336.35/40 to the US dollar in the spot market, while bond yields were broadly steady — e.g. the 15.09.2027 bond at 10.30/40%, 15.10.2028 at 10.70/80% and the 15.12.2029 bond at 11.20/30%.

Sri Lanka sold all Rs140bn of Treasury bills at Wednesday's auction; 3-month yield fell 18bp to 9.95%, 6-month fell 3bp to 10.24%, and 12-month was unchanged at 10.20%.

Sri Lanka's NCPI inflation rose to 6.5% year-on-year in June, up from 5.4% in May, driven mainly by higher food prices. Food inflation climbed to 3.3%, core inflation to 5.0%, and monthly NCPI increased 1.6% to 222.3 points.

Secondary government bond yields rose ahead of the Monetary Policy announcement, with maturities trading roughly between 10.70% and 12.25%; a Rs.140bn T‑Bill auction (Rs.60bn 91d, Rs.50bn 182d, Rs.30bn 364d) is scheduled today. Money-market surplus was Rs.142.36bn and USD/LKR closed near 336.35/336.50.

The Central Bank kept the overnight policy rate unchanged at 8.75%, and the Colombo Stock Exchange All Share Price Index rose 0.39% to 21,228.39. Brokers noted a flow of funds from equities to fixed-income instruments amid higher interest rates; turnover was 2.7 billion rupees.

Sri Lanka rupee quoted at 336.50/75 to the US dollar in the spot market (from 336.35/50), while bond yields were broadly steady and Rs.140,000 million of Treasury bills are to be issued at auction. Government bond quotes were around 11.20–12.15%, with small moves on a few maturities.

Central Bank kept the Overnight Policy Rate unchanged at 8.75%. Headline inflation rose to 6.8% in June, with higher fuel prices and Middle East tensions posing upside risks; gross official reserves were USD 6.45bn and the rupee has stabilised.

Asian stocks rose, led by a rebound in semiconductor shares as MSCI's Asia-Pacific ex-Japan index gained 1.2% and South Korea's Kospi jumped over 6%. Brent crude nudged to $91.55/bbl and markets are focused on upcoming US earnings and central bank meetings.

The Central Bank of Sri Lanka kept the Overnight Policy Rate (OPR) unchanged at 8.75%. Headline inflation accelerated to 6.8% y/y in June 2026 driven by higher energy and food prices; gross official reserves were USD 6.45bn and the rupee has stabilised.

Union Bank (UBC.N0000) launched a competitive pension loan of Rs 8 million at the lowest interest rates while hosting a Pensioners' Day offering health screenings and benefits, including Rs 30,000 in annual PickMe rides for government pensioners; Nawaloka Hospitals participated as a partner.

Sri Lanka's rupee closed at 336.35/50 per US$ (from 336.25/35), while bond yields were broadly steady; the 15.09.2027 bond closed at 10.35/40% and longer-dated yields ranged about 11.20–12.60%.

Sri Lanka's NCPI rose to 6.5% year-on-year in June 2026, up from 5.4% in May, as the All Items index increased 1.6% month-on-month to 222.3. The monthly rise was driven by a 2.5% jump in the Food index (250.5), while non-food inflation stood at 9.3% year-on-year.

Secondary bond market was quiet ahead of the 22 July Monetary Policy announcement; yields closed broadly steady to marginally higher with select tenors at 10.30%, 12.00% and 12.00%. Net liquidity surplus rose to Rs.148.13bn, SDFR deposits Rs.103.38bn, USD/LKR ~336.25/336.30.

Sri Lanka's rupee was quoted at 336.35/40 to the US dollar on Tuesday (from 336.25/35), bond yields were broadly steady, and Rs.140,000 million of Treasury bills are to be auctioned on 22 July.

Asian stocks rose as hopes of Middle East mediation pulled Brent down to $88.88/bbl from a one-month high, while investors awaited major tech earnings and monitored rising U.S. Treasury yields and interest-rate expectations.

Sri Lanka's rupee closed at 336.25/35 to the US dollar on Monday, while bond yields were broadly steady with key maturities trading roughly between 10.35% and 12.70%.

Colombo Stock Exchange fell 0.80% as the All Share Price Index closed at 21,234.81 amid escalating West Asia tensions and rising oil prices. Top decliners included Dialog Axiata and Commercial Bank, with market flows shifting from equities to fixed income amid higher interest rates.

Foreign holdings of rupee government securities rose by Rs. 7.67 billion last week to Rs. 176.56 billion. Secondary bond yields firmed after Treasury auctions and geopolitical-driven oil price moves while T-bill yields softened, liquidity surplus rose to Rs. 167.97bn and USD/LKR closed ~336.2.