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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%.

Global stocks fell and oil and gas prices rose sharply after a major escalation in the Middle East, while the Bank of Japan left rates unchanged and the yen hovered near 160 per dollar.

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 Treasury bill yields were unchanged across maturities at Wednesday's auction; 60.79 billion rupees were sold of 120 billion offered, with the 3-month at 7.61% (26.26bn sold), 6-month at 7.91% (12.83bn) and 12-month at 8.23% (21.69bn).

Fitch warns a prolonged Middle East conflict could raise developed-market sovereign risks via higher energy prices and borrowing costs; its baseline keeps Brent near current levels then $70/bbl in 2026, while a $95–$100/bbl scenario would slow DM growth and lift inflation, hitting Italy, the UK, Japan and France hardest.

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.

Asian shares rallied as oil prices paused—Brent fell to $102.28/bbl and WTI dropped ~1.6%—while markets turn to the U.S. Federal Reserve meeting for guidance on interest-rate paths. Attention is on the Fed’s dot plot and Powell’s comments amid geopolitical-driven oil risks.

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%.

The Central Bank of Sri Lanka urged the Government to continue fiscal consolidation and strengthen external buffers, warning rising global risks — geopolitical tensions, commodity price volatility and adverse weather — could threaten macro-financial stability. The warning was issued with the release of the Financial Sector Performance 2025 report.

CBSL said banking gross loans rose 21.4% y/y and finance company lending rose 51.9% at end-2025, with Stage 3 loan ratios falling to 9.7% (banks) and 6.1% (finance companies). Liquidity and capital buffers eased but remained above regulatory minima; ASPI gained 41.9% and the rupee depreciated 5.6%.

Secondary bond yields rose and market activity remained subdued ahead of a Rs.120 billion Treasury Bill auction (offered amount below maturing volume of ~Rs.142.44 billion). The rupee slightly appreciated to Rs.311.30/311.40 and short-tenor bills saw continued demand while longer-tenor yields moved higher.

Central Bank said Sri Lanka must sustain fiscal consolidation and bolster external buffers to safeguard macrofinancial stability, noting private‑sector credit rose and public‑sector exposure fell in 2025. It warned the widened credit‑to‑GDP gap and external shocks (Middle East conflict, commodity volatility, Cyclone Ditwah) could weaken credit quality.

Sri Lanka's rupee strengthened to 311.30/40 per US dollar in spot trading (from 311.50/60), while government bond yields closed mixed on limited trading; the 15.12.2026 bond was about 8.10-8.20% and longer-dated maturities ranged roughly 9.15%-10.80%.

Central Bank reports credit expanded sharply in 2025: banking gross loans rose 21.4% y/y and finance companies' gross loans rose 51.9% y/y. Asset quality improved (stage‑3 loans down), liquidity and CAR moderated but stayed above regulatory minima; ASPI +41.9%, rupee −5.6%.

Union Bank of Colombo PLC's Basel III Tier II debenture issue was oversubscribed with applications totalling Rs. 3.23 billion for 32.29 million debentures; the bank allotted debentures across Types A–C per its basis of allotment.

Secondary Treasury bond yields rose amid Middle East unrest and Brent crude staying above $100, while the rupee weakened to Rs.311.50/311.60. Selected maturities traded higher (e.g. 01.07.28 at 9.25%, 01.10.32 at 10.30%) with secondary volume Rs.7.93bn.

Sri Lanka's rupee was quoted at 311.40/60 to the US dollar and bond yields were broadly unchanged. Sovereign secondary market quotes ranged roughly from 8.10% to 10.90% across maturities and the telegraphic-transfer dollar rate was 308.00/315.00.

Siyapatha Finance PLC will raise up to Rs. 3.75 billion via five-year subordinated debentures (initial Rs. 2.0bn, option to add Rs. 1.75bn) at a fixed 11.50% p.a.; Fitch assigned a final national long-term rating of BBB+(lka) to the issue.

Sri Lanka rupee closed weaker at 311.50/60 per USD on Monday (from 311.15/25 on Friday) while government bond yields rose; reported yields ranged from about 8.10% (Dec 2026) up to roughly 10.80–10.90% (Jun 2035), with several maturities higher.

Sri Lanka sold Rs4,000 million of Treasury bonds on tap at a weighted average yield of 10.80% (15 Aug 2036), bringing total bonds sold this week to Rs91.02 billion; settlement is March 16.

Sri Lanka's secondary government bond market was volatile early in the week but closed broadly steady week‑on‑week. A Treasury Bond auction raised Rs.87.02bn (66.94% of Rs.130bn offered) amid undersubscription, foreign holdings fell by Rs.4.5bn, and system liquidity remained ample at around Rs.406.78bn.

The public debt management office sold Rs9,000 million of Treasury bills on tap at average rates of 7.91% (6-month) and 8.23% (12-month), bringing last week's total T-bill sales to Rs105,719 million. Total market subscription was Rs7,500 million; earlier in the week the office raised Rs96.71 billion of 3-, 6- and 12-month bills.

Sri Lanka's rupee was quoted at 311.10/30 to the US dollar, broadly unchanged, while government bond yields edged up slightly across maturities; the ASPI fell 1.51% to 21,365.78.

Asian markets were cautious as Gulf hostilities kept oil elevated (Brent $104.01/bbl), complicating the inflation outlook and likely keeping most central banks on pause this week. The Fed is widely expected to hold while the RBA may hike to 4.1%.