News & market updates

John Keells Holdings delivered a broadly in-line Q2 FY26 with retail (BYD: 3,705 vehicles), consumer foods and financial services—led by Nations Trust Bank—driving growth; City of Dreams Sri Lanka became fully operational in Aug 2025 and was close to EBITDA breakeven.

Sri Lanka's rupee opened at 308.20/50 per USD, weakening from 308.00/20, while government bond yields edged higher across maturities and the ASPI fell 2.84% to 22,068.78.

Sri Lanka's current account recorded a $199.5m deficit in October 2025, the second consecutive monthly deficit, narrowing the YTD end‑October surplus to $1.65bn. Imports rose 26.7% YoY in October while exports fell 0.7% YoY; remittances and tourism helped inflows, reserves were ~$6.2bn and the rupee was down ~5% YTD.

CBSL held the Overnight Policy Rate at 7.75%, and short-end government bond yields rose during the week while the long end remained anchored. Treasury bond auction weighted averages came in below secondary market yields, the weekly T‑Bill auction was undersubscribed (64.32% taken up) and foreign holdings of rupee securities rose by Rs.1bn to Rs.139.53bn.

Gross dollar inflows were $2,357m in October 2025, $200m higher than imports of $2,157m, while the goods trade deficit was $1,007m. A surge in private credit lifted investment goods and vehicle imports (personal vehicle imports rose to $205.6m from $2.0m a year earlier).

The government opened designated local and foreign-currency bank accounts to receive disaster relief contributions, including a Bank of Ceylon rupee account (2026450) and Central Bank foreign currency accounts in USD, EUR, GBP, JPY and AUD; details shared with diplomatic missions.

Sri Lanka's rupee closed at 308.00/20 to the US dollar, marginally weaker than the prior day. Government bond yields were broadly steady, with the 15.12.2026 bond at 8.20/30%, the 15.02.2028 bond at 9.12/18% and the 01.07.2030 bond at 9.55/60%.

CBSL Governor Nandalal Weerasinghe said annual external debt servicing will average about $2.75bn through 2027, rise to $3.2–3.5bn from 2028 and could peak near $4bn in some years; 2025 debt service is $2.435bn with $1.948bn paid by September. He urged fiscal discipline, reserve rebuilding and sustained policy buffers to manage repayments.

Sri Lanka's rupee was quoted at 307.90/308.20 to the US dollar and government bond yields were steady, with the 15.03.2028 bond at 9.05/13% and the 15.12.2032 bond at 10.23/30%.

Treasury bond auctions on 26 Nov produced weighted-average yields below prevailing secondary-market levels—01.03.2030 at 9.53% (vs ~9.60–9.64) and 01.06.2033 at 10.39% (vs ~10.45–10.50). Secondary turnover was Rs.28.60bn, net liquidity surplus Rs.92.26bn, and USD/LKR closed at 308.05/308.15.

Sri Lanka's average tourist daily spend fell to $148 from $171, a survey of 11,000 inbound and 5,000 outbound travelers found; independent travelers stay longer (around 16 days) and 58% of tourists were women, presenting opportunities for targeted services.

Sri Lanka’s rupee closed slightly weaker at 308.05/15 per USD versus 308.00/05 the previous day, and short-end government bond yields rose (e.g. 15.12.2026 quoted at 8.25/35% from 8.20/30%) while long-term yields remained steady.

CBSL kept policy rates unchanged at 7.75% in its final 2025 Monetary Policy Review, citing price stability and potential growth. The Bank projected 4.5% GDP growth for 2025, expects inflation to reach a 5% target by H2 2026, and said gross official reserves remain above $6bn.

CBSL Governor Nandalal Weerasinghe said pent-up demand for vehicle imports has largely been exhausted by November, with Letters of Credit for vehicle imports declining and easing foreign exchange outflows. Vehicle imports were $286m in September and $1.2bn in the first nine months of 2025.

Central Bank of Sri Lanka held the policy rate at 7.75% (SDFR 7.25%, SLFR 8.25%) in its November review, the third consecutive hold. Weekly T‑Bill yields stayed broadly steady (91d 7.52%, 182d 7.91%, 364d 8.03%), the T‑Bill auction was 64.32% subscribed and USD/LKR closed near 308.10.

Central Bank Governor Nandalal Weerasinghe said Letters of Credit that rose from pent-up vehicle import demand are now declining and vehicle imports should stabilise in coming months. He added the LKR exchange rate is set by market demand and supply, with the CBSL intervening to smooth volatility and noting about 5% depreciation year-to-date.

Sri Lanka's rupee was quoted at 307.90/308.20 to the US dollar, slightly firmer than the prior day's 308.00/05, while government bond yields were largely steady and a LKR 42,000 million Treasury bond auction was underway. The ASPI rose 0.10% to 22,866.

President Anura Dissanayake will outline the government's views on the next phase of economic rebuilding and the policy choices shaping it at the Sri Lanka Economic and Investment Summit on December 2, 2025, in Colombo.

Sri Lanka's rupee closed at 308.00/05 per US$ on Wednesday, slightly weaker than the prior day, while government bond yields rose; a 42,000 million rupee Treasury bond auction is scheduled for Thursday (27).

Central Bank Governor Nandalal Weerasinghe said the rupee can move both ways and the central bank will ensure gradual two‑way exchange rate movement. Officials expect a current account surplus of around 1% of GDP and anticipate motor vehicle imports to fall as new letters of credit slow.

Central Bank Governor Nandalal Weerasinghe said Sri Lanka's forex reserves will reach a post-crisis high by year-end after $370m from the ADB and over $340m from the IMF are expected in December. Reserves have remained below $6.5bn since Oct 2024 and a $7bn figure in IMF papers is a projection, not a target.

Sri Lanka's rupee was flat at 307.90/308.00 to the US dollar while short-term government bond yields edged up slightly and longer maturities held steady; a LKR 42,000m Treasury bond auction was ongoing and a LKR 86,500m T-bill auction was scheduled, ASPI +0.54%.

Sri Lanka's central bank kept the Overnight Policy Rate at 7.75% in its November 2025 decision. The Bank said the stance aims to steer inflation toward a 5% target, with gross official reserves above USD 6 billion and reduced depreciation pressure on the rupee.

Secondary bond market remained subdued and yields broadly steady ahead of the Central Bank's Monetary Policy Review No.06 today; the weekly T-Bill auction offers Rs.86.50 billion (Rs.16.00b 91-day, Rs.40.00b 182-day, Rs.30.50b 364-day).

Ambeon Capital PLC's Taprobane Minerals Project reported drilling expanded estimated resources nearly 15-fold, with a base-case IRR of 73% and NPV8 of USD 180m; funding is secured, commercial operations are expected by early 2026 and first production in early 2027.

Ambeon Capital PLC's Taprobane Minerals Project reported drilling expanded estimated resources nearly fifteenfold in the initial development area, with a base-case IRR of 73% and an NPV8 of $180m; funding is secured and commercial operations are targeted for early 2026 with first production in early 2027.

Sri Lanka's rupee closed at 307.90/308.00 to the US dollar and bond yields were broadly steady (roughly 9.05%–10.70% across maturities). Auctions: 42,000 million rupees of Treasury bonds on Thursday (27) and 86,500 million rupees of T-bills on Wednesday (26).

Sri Lanka's rupee opened at 307.80/90 to the US dollar, flat from the prior open, while government bond yields were largely steady (e.g., 15.03.2028 quoted at 9.00/05%). Auctions for 42,000 million rupees of Treasury bonds (Thu 27) and 86,500 million rupees of Treasury bills (Wed 26) are scheduled.

Secondary bond market started the week slowly ahead of the final 2025 Monetary Policy Announcement and upcoming T‑bill/Bond auctions, with yields consolidating and total secondary market Treasury Bond/Bill volume at Rs. 3.56 billion (14 Nov). Net liquidity surplus was Rs. 58.50 billion and USD/LKR closed steady at Rs. 307.80/307.90.

First Capital Research assigns a 60% probability the Central Bank will keep policy rates unchanged at tomorrow’s review and a 40% chance of a cut (30% for 25bp, 10% for 50bp), citing rapid credit growth, weak reserves and rupee pressures as reasons against easing.