News & market updates

Brent crude jumped past $110/bbl in March 2026, prompting Sri Lanka to raise diesel 7.8% and petrol 10%, which widens the import bill, pressures reserves and has devalued the rupee. The shock raises energy and transport costs, risking higher inflation and strain on fuel importers and the power sector.

NDB Wealth Management, a fully owned subsidiary of National Development Bank (NDB.N0000), hosted an investor forum in Kandy focusing on the low interest rate environment and emerging investment opportunities. Company executives highlighted renewed capital market prospects post-2022 crisis and urged long-term, risk-aware portfolio positioning.

Sri Lanka's rupee weakened to 311.60/90 per US dollar and government bond yields rose after global energy prices increased; selected yields included the 15.10.2029 at 9.60–9.70% and the 01.06.2033 at 10.60–10.70%.

CB Governor P. Nandalal Weerasinghe told Bloomberg (7 Mar 2026) Sri Lanka has sufficient policy buffers—stronger foreign reserves, flexible policy and exchange-rate flexibility—to absorb external shocks; inflation is about 1.6% and IMF talks may be needed if shocks intensify.

The Iran conflict has pushed oil above $110/bbl, forcing central banks to weigh supporting growth against fighting higher inflation. Emerging Asian central banks may reverse dovish stances or intervene to defend currencies amid risks of capital outflows and stagflation.

CBSL: Sri Lanka's banking sector profits after tax rose 19.3% YoY to Rs. 369 billion in 2025. Net interest income grew 11.7% to Rs. 1.02tn, non-interest income rose 49.8% to Rs. 275bn, loans up 23% to Rs. 12.9tn, deposits near Rs. 20tn and credit-to-deposits 69.9%.

Treasury told ISB investors it expects GDP to average 3.1% annually from 2027–2030 and will maintain a long-term real interest-rate anchor of 2.5–2.6% under the IMF-supported program. The Treasury said the IMF RFI carried an approval-rate of about 3.27–3.28% and the IMF Fifth Review was delayed by Cyclone Ditwah but should advance in March 2026.

Government will maintain cost-reflective pricing for fuel and electricity despite rising global oil prices, avoiding subsidies that would burden state finances. Officials warned this could cause a short-term inflation spike to around 5–6% and dent export competitiveness (tea exports are exposed to the Middle East).

Commercial Bank MD/CEO Sanath Manatunge will moderate a panel at the Sri Lanka Institute of Directors forum on 10 March where Sir Mark Tucker will deliver the keynote. The session also features Indrajit Coomaraswamy and AIA Insurance Lanka CEO Chathuri Munaweera.

Secondary bond yields closed higher last week, with 2028 tenors trading around 8.95%–9.20% and long-end yields rising to about 10.65%–10.80%. Weekly T-bill rates held broadly steady (91d 7.63%, 182d 7.92%, 364d 8.23%), the auction was undersubscribed (accepted Rs.55.33bn) and USD/LKR depreciated to Rs.310.80/311.20.

Fitch warns the Iran conflict could raise credit risks for emerging-market sovereigns by raising global energy prices and straining remittances, fiscal subsidies, exchange rates and access to finance; hydrocarbon exporters could benefit while importers (e.g. Pakistan, Egypt, Philippines, Ukraine) are more vulnerable.

Sri Lanka's rupee weakened to 311.50/312.00 against the US dollar (from 311.00/20 on Friday) and government bond yields opened higher after global oil prices jumped over 20% and rose above $100/barrel.

Ceylon Money Market Fund (managed by Ceylon Asset Management) was the top-performing Sri Lankan money market fund in 2025 with an 8.92% p.a. return (net of WHT) and was upgraded to an A (Stable) rating; Hatton National Bank is the fund's trustee and custodian.

CFA Society Sri Lanka and Frontier Research will run a half-day "Economics in Practice" executive program on 12 March (08:30–12:30) in Colombo to teach professionals to interpret key economic indicators, fiscal and external trends and their business/investment implications; registration closes 10 March.

Sri Lanka’s official worker remittances rose 33% to US$729 million in February 2026. Inflows for January–February increased 32% to US$1,480.1 million, with remittances climbing after the central bank wound down the parallel exchange rate regime.

Sri Lanka's finance ministry said debt is on a sustainable trajectory after completion of the debt restructuring, placing debt below IMF DSA targets; yields on the government's international bonds have steadily declined, the ministry reported.

Sri Lanka's rupee closed at 311.00/20 to the US dollar, slightly firmer on the day but weaker week-on-week. Government bond yields were broadly steady across maturities, with the 15.12.2026 issue quoted at 8.20/30%.

Asia-Pacific stocks were set for their steepest weekly fall in six years while Brent crude rose to around $83/barrel as the Middle East conflict intensified. U.S. Treasury yields climbed about 18 basis points this week and the dollar posted its largest weekly gain in 16 months.

Sri Lanka's rupee weakened to 311.30/60 per US dollar from 310.50/311.10, while government bond yields were broadly steady across the curve (e.g. 01.06.2033 quoted at 10.48/51%). The ASPI fell 0.44% to 22,733.15 and the S&P SL20 rose 0.55% to 6,390.67.

Secondary bond market yields held broadly steady, with major maturities trading between 8.95% (15.01.28) and about 10.795% (15.06.34/35). Net liquidity surplus was Rs. 336.51bn, CB drained Rs. 75bn via overnight repo at 7.57%, and USD/LKR closed at 311.00/311.50.

Sri Lanka sold Rs7.5bn of Treasury bills on tap at average yields of 7.92% (6-month) and 8.23% (12-month), bringing this week's T-bill sales to Rs55.33bn. Settlement date is March 6, 2026.

NDB Wealth hosted an exclusive investor forum and networking session in Kandy, discussing the low interest rate environment and emerging investment opportunities. Speakers highlighted macro stabilization, improving liquidity and chances across equities and fixed income while stressing disciplined long-term asset allocation.

Sri Lanka's rupee weakened to 310.50/311.10 per US dollar on Thursday from 310.30/60, while government bond yields were broadly steady — 15.12.2026 at 8.20/30% and long-dated bonds roughly 9.22–10.75%.

Sri Lanka will establish an independent Microfinance and Loan Regulatory Authority by amending the Microfinance Act to bring more lenders under regulation; the bill proposes fines up to LKR 5 million, up to five years' jail for illegal lending, and powers to investigate practices and set enforceable interest-rate standards.

National Development Bank (NDB) received Colombo Stock Exchange approval in principle to list Rs 16 billion of debentures, issuing 120 million Tier-2 Basel III-compliant GSS+ bonds (11.50%, 11.04% and 11.85%) at Rs100 each. Subscription opens March 10; issue is rated BBB+(lka) by Fitch and managed by NDB Investment Bank.

Global markets were volatile as the escalating Middle East conflict pushed oil up (Brent ~$81.18, nearly $10 above last Friday), drove sharp equity losses in Asia (South Korea KOSPI -12%), and lifted US Treasury yields (10-year 4.08%), stoking inflation and rate-cut worries.

Sri Lanka's rupee weakened to 310.70/85 per USD from 310.30/60, while government bond yields were broadly steady (around 9.00–10.55% across quoted maturities); the ASPI rose 1.05% to 22,814.22 and the S&P SL20 was up 0.90%.

Net money-market liquidity surplus rose to Rs. 403.77 billion (from Rs. 332.49b) with Rs. 254.06 billion at the Central Bank SDFR and the DOD conducting Rs.75bn overnight and Rs.75bn seven-day repos. T-bill yields held broadly steady (91d 7.63%, 182d 7.92%, 364d 8.23%) and USD/LKR closed at 310.30/310.60.

Capital Alliance PLC (CALT) was upgraded by Lanka Rating Agency to an ‘A+’ rating from ‘A’ with a Stable Outlook, citing strong capitalisation, improved profitability and total equity of ~Rs.15 billion as of 30 Sep 2025; LRA noted capital adequacy remained comfortably above regulatory requirements.

Gold rose 0.8% to $5,177.26/oz as the widening Middle East conflict boosted safe-haven demand and a softer dollar; U.S. April futures were up 1% at $5,186.40. The piece also notes Fed chair nomination and upcoming U.S. jobs data that could affect rates.