News & market updates

Sri Lanka's Treasury bill yields fell at Wednesday's auction and all Rs120 billion offered were sold. The 3-month was down 8bps to 10.13% (Rs55bn sold), the 6-month down 3bps to 10.27% (Rs35bn) and the 12-month down 1bp to 10.20% (Rs30bn).

Sampath Bank (SAMP.N0000) will list Rs10 billion of Basel III-compliant tier-2 green bonds, offering 13.00% and 13.25% coupons for 5- and 7-year maturities; Fitch assigned the issue a final National Long-Term Rating of A(lka). Subscription opens July 17.

MAC Hotels and Villas (a subsidiary of MAC Holdings Pvt Ltd) acquired Serene Pavilions and in January 2026 reopened it after refurbishment and rebranding as CLOVE Beach – Wadduwa, a 15-room luxury boutique hotel in Wadduwa.

Sri Lanka's cabinet approved a new national livestock policy to replace the two-decade-old framework, prioritising private sector-led, market-oriented competitive production. The policy also emphasises sustainable, environmentally friendly development and targeted support for small-scale farmers.

Sri Lanka held the inaugural Development Partner Working Group on Digital Transformation on 13 July to align institutional frameworks and human-capacity building for national digital public services. The session, co-chaired by the Deputy Minister of Digital Economy and the UN Resident Coordinator, prioritized coordination with international partners and public-sector upskilling.

Sri Lanka's rupee traded at 336.35/50 to the US dollar on Wednesday, slightly weaker than the prior day's 336.00/20, while government bond yields were largely steady. Rs. 120,000 million of Treasury bills are scheduled for auction on July 15.

Asian stocks rallied after U.S. CPI fell 0.4% in June and annual core inflation eased to 2.6%, cutting rate-hike odds and sending two-year Treasury yields down 11bp to 4.19%. Oil steadied around $85.80/bbl and China's Q2 GDP slowed to 4.3%.

Three correspondent banks in the US, UAE and Vietnam rejected a fraudulent $1.3m government debt payment before scammers' revised instructions enabled part of a $2.5m Treasury phishing fraud to succeed, MPs heard. The Central Bank said it alerted the Treasury each time but had no statutory duty to file suspicious-transaction reports; the committee is probing payment governance and the PDMO handover.

Outgoing Swedish Ambassador Jan Thesleff said Sri Lanka's improving policy stability is restoring international investor confidence and named renewable energy, ICT, apparel, healthcare and food processing as key growth sectors; a Swedish business delegation will visit in January 2027.

The National System Operator has launched an international tender for a 250 MW/1000 MWh standalone BESS, to be delivered as 25 x 10 MW/40 MWh blocks under 15-year BOO contracts; proposals are due 14 August 2026. The tender aims to improve renewable integration and support the government's 70% renewable-by-2030 and net-zero-by-2050 targets.

Government set a 2027 primary expenditure ceiling of Rs.5.064 trillion (12.9% of GDP) and projects the budget deficit will narrow to 4.5% of GDP in 2027, targeting a primary surplus of 2.6% of GDP from 2027 onwards.

Commercial Bank will open subscriptions on 16 July for up to Rs.20bn of Basel III-compliant subordinated debentures and Sampath Bank will open on 17 July for up to Rs.10bn of Basel III-compliant Tier-2 green bonds. Commercial Bank offers 5/7/10-year series at 13.00–13.25%; Sampath offers 5- and 7-year series at 13% and 13.25%.

Government lost over Rs.25 billion in potential cigarette tax revenue since 2025 after the tax share fell to 67% (below the WHO's 75% benchmark), with over Rs.8 billion lost in the first six months of 2026, Verité Research said; Verité launched a Cigarette Tax Leakage Tracker on PublicFinance.LK.

C.W. Mackie PLC appointed Asoka Piyadigama as an Executive Director effective 1 August 2026. He currently serves as an Independent Non-Executive Director of York Arcade Holdings and Acme Printing and Packaging and sits on committees within the CFLB Group.

The Cabinet approved a five-year National Policy (2026–2030) to prevent money laundering, counter terrorist financing and combat financing of WMD proliferation. The policy follows the Central Bank FIU's 2024–25 national risk assessment aligned with FATF standards and aims to strengthen coordination and preventive measures.

Serendib Hotels PLC appointed banking veteran Janakan Selvaratnam as an Independent Director. He has 25 years at Citibank Sri Lanka, consults to Sampath Bank's Board Credit Committee, and serves on the boards of Eden Hotel Lanka and Palm Garden Hotels.

BPPL Holdings (via subsidiary Beira Brush) will acquire Ravi Industries' customer base, 'Ravi' trademark and related IP under a business transfer agreement with minimum consideration of Rs.300 million payable over five years linked to revenue. The company says the deal will create synergies and position Beira Brush among the largest industrial brushware manufacturers in Asia.

Government banned imports of goods produced using forced labour effective 10 July, requiring importers to certify goods are free of forced labour to strengthen compliance and reduce the risk of higher U.S. tariffs (USTR had proposed an additional 12.5% on Sri Lankan exports). The move targets protection of apparel exports to the US, Sri Lanka's largest market (~$3bn annually).

Cabinet approved a €924,063 German grant to fund a program promoting energy-efficient, climate-resilient buildings in Sri Lanka, to be implemented by GIZ with the Energy Ministry and the Sustainable Energy Authority.

Logical, a Sri Lankan-founded AI startup, was accepted into Y Combinator and raised over Rs. 150 million in initial funding. The company is building a proactive desktop AI copilot that transfers context across apps to help knowledge workers take action with fewer prompts.

Colombo market fell to a three-month low as the ASPI slipped 0.50% (107.39 pts) to 21,424.99 and the S&P SL20 dropped 0.37% (22.04 pts) to 6,000.15. Foreign investors were net sellers of Rs.126.9m; main negative contributors included Carson, Melstacorp, Vallibel One and John Keells, while Lanka IOC, Ceylon Cold Stores and Dipped Products led turnover.

Cabinet approved loan and grant agreements securing a $35m ADB loan plus grants of over €15.4m and $5.5m to fund a grid-based rooftop solar and virtual net metering project. The project aims to improve integration of rooftop solar into the national grid and boost small- and medium-scale renewables.

SLIIT Business School published an international study introducing a new digitalisation index covering 71 countries (2010–2022) that classifies nations as Digital Pioneers, Adapters, or Followers. The research finds digital competitiveness depends on innovation, human capital, cybersecurity, R&D and institutional readiness, not just technology adoption.

A three-night luxury destination wedding for 600 guests at Cinnamon Bentota Beach showcased Sri Lanka's capacity to host international high-end weddings. The event highlighted economic opportunities for hospitality, event production, catering, transport and other local service providers.

FitsAir renewed its partnership with the Lanka Premier League as the Official Airline Partner for the 2026 season. The tie-up is intended to support tourism by attracting international players, travelling fans and global broadcast audiences.

NÜWA at City of Dreams Sri Lanka celebrates its first anniversary and has been awarded a Five-Star Classification by the Sri Lanka Tourism Development Authority, marking the 113-room hotel as a flagship luxury property in Colombo.

LOLC Holdings PLC held a strategic engagement with the National Bank of Rwanda to support financial inclusion and expand LOLC Unguka Finance's growth in Rwanda, including cooperation on MSME development and green finance initiatives.

Sri Lanka stocks closed flat as the ASPI rose 0.01% to 21,426.43, with banks leading turnover at 327.4 million rupees. Haycarb, John Keells and Ceylon Cold Stores were top gainers while HNB, Central Finance and Commercial Bank were top decliners; Digital Mobility Solutions disclosed ESOP allotments and its shares closed down 0.30%.

Samaposha (CBL) will be the title sponsor of the Provincial School Games for a 10th consecutive year; the 2026 Games begin 21 July across seven provinces with over 35,000 athletes from 3,500 schools competing in 70 events. The sponsorship is part of its 'Dinana Daruwo' child development and Govi Paula local sourcing initiatives.