News & market updates

China offered to help Sri Lanka diversify foreign-exchange reserves and expand renminbi (RMB) settlements to reduce dollar-related exchange-rate risks. Officials said wider RMB use, digitalisation and talks with Chinese firms including Sinopec could cut costs and attract investment.

The RMB Internationalization Forum 2025 in Colombo convened policymakers and business leaders to promote RMB trade and financial settlements between Sri Lanka and China, noting cross-border RMB settlements exceeded 35 trillion yuan in H1 2025. Officials, including the Central Bank governor and China's ambassador, discussed reserve diversification, digital RMB settlement mechanisms and potential new Chinese investments alongside an upcoming Investor Protection Act.

Sri Lanka's rupee opened weaker at 307.00/50 to the US dollar, while government bond yields were mostly steady; the ASPI fell 0.44% to 23,357.

Sri Lanka's central bank will only resume reverse repo liquidity auctions if short-term rates become volatile and currently deems overnight auctions unnecessary while operating a standing overnight facility at 8.25%. Forex interventions in 2025 have materially shifted liquidity and put upward pressure on the rupee.

Rs.80bn Treasury Bond auction was fully subscribed and the long end of the yield curve (2030+ tenors) declined, flattening the curve. The weekly T-Bill auction was undersubscribed and the USD/LKR depreciated to about 306.90/307.20.

Deputy Minister Anil Jayantha Fernando said Sri Lanka's budget contains no new taxes and aims to maintain tax stability, with customs exceeding its 2025 revenue target. He said reopening vehicle imports restored a revenue source and warned past rate cuts and import bans helped trigger repeated currency crises.

Dialog Axiata reported a 26.7% rise in profit to 5.69 billion rupees in the September 2025 quarter. Profit per share was 0.62 rupees; the group also recorded a forex loss of 394 billion rupees and higher net finance costs despite higher revenue and lower direct costs.

Ceylon Grain Elevators posted revenue up 22% to Rs 7.3bn and net profit of Rs 936mn (EPS 15.60), driven by stronger broiler day-old chick and processed chicken sales from its Three Acre Farms unit.

Sri Lanka's rupee weakened to 306.90/307.20 per US dollar on Friday from 305.50/305.90 the previous day, while government bond yields were broadly steady — the 15.12.2026 bond at about 8.10–8.20% and longer-dated yields around 9.4–10.7%.

Sri Lanka's rupee opened weaker at 305.50/306.00 to the US dollar while government bond yields were broadly steady with small moves across maturities. The ASPI fell 0.60% to 23,320 and telegraphic transfer USD rates were quoted at 302.25/309.25.

IMF staff are reviewing Sri Lanka’s published 2026 budget documents as part of the next Extended Fund Facility review. The assessment, to be discussed by the IMF Board, will evaluate fiscal prudence and structural reforms (trade liberalization, FDI, governance) and flags monetary stability and exporters' competitiveness (SVAT removal).

Sampath Bank reported nine-month PAT of Rs. 21.5 billion (up 21% YoY) and group PAT of Rs. 23.1 billion. NII fell 6% and NIM narrowed to 4.09%, but Rs.3.5b exchange gains, 20% growth in fee income, 18.9% loan growth and lower impairments supported the result.

The Treasury fully raised the Rs.80bn on offer at yesterday's bond auction, with the 01.07.30 issued at a weighted average 9.56% (down from 9.80%) and the 15.06.35 at 10.69%; yields traded lower, net liquidity was Rs.162.43bn and USD/LKR closed around 305.50/305.90.

Sri Lanka's rupee weakened to 305.50/90 per USD from 304.60/65 the previous day, while government bond yields closed largely steady (e.g. 15.12.2026 around 8.10–8.15% and 15.06.2035 around 10.68–10.73%).

Sampath Bank reported PAT of Rs 21.5 Bn for the nine months to 30 Sep 2025, up 21% year-on-year (PBT Rs 35.3 Bn; group PAT Rs 23.1 Bn). Net interest income fell 6% and NIM narrowed to 4.09%, while non-fund income rose 107% and impairment charges fell 62%.

HNB PLC reported Group PAT of Rs 34.7 Bn for the nine months to Sep 2025, up 47% YoY (Bank PAT Rs 31.5 Bn, +42%). Loans grew by Rs 287.7 Bn (Bank Rs 262.6 Bn), group assets exceeded Rs 2.6 Tn, net Stage 3 ratio fell to 1.36%, Tier I 16.74% and LCR 227.45%.

Sampath Bank reported profit up 4% y/y to LKR 7.5 billion in the September 2025 quarter (earnings LKR 6.41 per share). Fee and commission income rose 43% to LKR 6.2bn while net interest income declined as interest expenses grew faster; loans rose 22% and Group Tier 1 ratio was 14.06%.

Sri Lanka's rupee opened weaker at 304.75/85 to the US dollar and bond yields opened steady as an Rs.80,000 million Treasury bond auction was underway. The ASPI was down 0.32% at 23,582.

Hatton National Bank (HNB) posted group PAT of Rs. 34.7bn in the first nine months of 2025, up 47% YoY. Group net loans rose by Rs. 287.7bn YTD and asset quality improved, with the Net Stage 3 ratio falling to 1.36%.

Weekly Treasury Bill auction was undersubscribed, raising Rs.43.31bn (56.25%) of Rs.77.00bn offered; 91-day and 364-day yields held at 7.52% and 8.04% while the 182-day rose 1bp to 7.91%. Secondary bond yields edged up marginally and an Rs.80bn Treasury Bond auction is scheduled for 13 November (settlement 17 Nov).

Commercial Bank of Ceylon reported Q3 profit of 16.59 billion rupees, up 32% year-on-year, with quarterly EPS of 10.18 rupees. Nine-month profit was 47.3 billion rupees (up 52%), loans grew 25% to 1,740 billion, NIM improved to 4.53% while Tier-1 fell to 13.3%.

Sri Lanka's rupee closed at 304.60/65 to the US dollar, weaker than 304.20/35 the previous day, while local government bond yields edged up marginally; a Rs.80,000 million Treasury bond auction is scheduled for tomorrow.

Sri Lanka Customs reached its 2025 revenue target on 11 Nov, collecting Rs 2,117.2 billion (USD 7.06bn) — 50 days before year-end. Officials attributed the surplus to higher vehicle import taxes, stronger enforcement and valuation, a rebound in import volumes, and digitisation of Customs procedures.

Sri Lanka's rupee opened weaker at 304.50/60 to the US dollar while bond yields were largely steady (01.05.2028 at 8.88/93%, 15.12.2032 at 10.25/30%). A 77,000 million rupee T-bill auction was ongoing and an 80,000 million rupee Treasury bond issue is scheduled for tomorrow; the ASPI was up 0.65% at 23,734.

Adviser Duminda Hulangamuwa said the 2026 Budget aims to restore the private sector as the "engine of growth" by mobilising private capital, offering tax incentives and institutional reforms to boost investment. He highlighted landmark laws (PPP, SOE, Strategic Development Projects, Port City) and a land bank to unlock projects including mining, plantations and wind power.

Sanasa Development Bank (SDB) reported Q3 2025 Profit After Tax of Rs. 254 million, with loans and advances up Rs. 9.7 billion YTD, lower NPLs and Stage 3 coverage improving to 52.28%; Total Capital Ratio 14.90% and LCR 148.65%.

DFCC Bank reported Group profit after tax of LKR 8.53 Bn for the period ended 30 Sep 2025 and group total assets rose ~20% to LKR 853 Bn. Loans grew 26% and net interest income rose 11%; the bank launched an LKR 3 Bn Blue Bond and recorded fair value gains partly from Commercial Bank share price increases.

DFCC Bank reported PAT of Rs.13.3bn including a disposal gain (core Group PAT Rs.8.53bn) for the nine months to 30 Sep 2025. Net interest income rose 11%; loans grew 26%, deposits 22% and total assets up ~20% to Rs.853bn while CASA improved to 25.34%.

Sri Lanka's central bank bought US$55mn in October 2025 and returned US$9.5mn. Year-to-date purchases stand at US$1,461mn versus US$2,061mn a year earlier amid excess liquidity, lower interest rates and a surge in private credit, with buy-sell swaps injecting further bank liquidity.

Secondary bond yields consolidated at recent lower levels as market participants awaited a weekly T‑Bill auction offering Rs.77 billion (Rs.10bn 91‑day, Rs.30bn 182‑day, Rs.37bn 364‑day). Net liquidity surplus was Rs.145.28bn at the SDFR 7.25%, and USD/LKR closed about 304.20/304.35.