News & market updates

Sanasa Development Bank (SDB.N0000) reported a Q3 2025 Profit After Tax of Rs. 254 million and year-to-date loan growth of Rs. 9.7 billion. Asset quality improved with Stage 3 coverage up to 52.28%, total capital ratio at 14.90% and LCR of 148.65% while digital and ESG investments continued.

Sri Lanka's rupee closed marginally weaker at 304.20/35 to the US dollar, while government bond yields were broadly steady — the 15.12.2026 note around 8.05–8.10% and longer maturities roughly 8.85–10.25%.

President Anura Kumara Dissanayake's 2026 budget frames IMF-linked reforms to stabilise recovery, citing 4.8% growth in H1 2025 and reserves above $6bn while aiming to bring debt below 90% of GDP by 2032. It advances FDI-friendly rules, PPPs, SOE reform, tariff liberalisation and a $15bn digital push, keeps cost-reflective energy pricing and VAT changes, and includes measures that could hurt plantations and small businesses.

WealthTrust Securities reports secondary bond yields fell across the curve with strong buying and high volumes, and a Rs.80 billion Treasury bond auction scheduled for 13 Nov (Rs.35bn 1-Jul-2030; Rs.45bn 15-Jun-2035). The rupee appreciated to Rs.304.15/304.20 and net liquidity surplus was Rs.142.49bn.

Rupee closed stronger at 304.15/20 to the US dollar; government bond yields fell across several maturities, e.g. 15.09.2029 to 9.35/40% and 15.12.2032 to 10.25/32%.

Workers' remittances to Sri Lanka reached $712 million in October 2025, the highest monthly inflow so far this year and the second-highest on record. The amount rose 21.2% YoY, taking remittances to over $6.5 billion in the first 10 months (up 20.1% YoY).

Sri Lanka's official worker remittances rose 21.2% to USD 712m in October 2025 and reached USD 6.52bn in the first 10 months (up 20.1% YoY), putting the country on track to surpass the 2017 record of USD 7.16bn for the year.

SJB MP Dr. Harsha de Silva called the 2026 Budget a betrayal, alleging a Rs.1 trillion “deception” and warning it includes record Rs.3.8 t borrowing and tax hikes (VAT threshold cut, possible new property tax). He also criticised meagre housing/loan allocations, high taxes on building materials, SVAT removal and the rupee at Rs.307.

Sri Lanka's rupee opened at 304.80/90 to the US dollar while government bond yields fell sharply across the curve (e.g. 15.09.2027 quoted at 8.60/70% down from 8.65/74%). An auction of LKR 77,000 million T-bills is scheduled for Nov 12; ASPI opened up 0.91% at 23,549.

Central Bank of Sri Lanka reserves fell $28m to $6.21bn at end-October 2025; the CBSL expects a net reserve outflow of about $1.98bn over the next 12 months, and reported FX forward/futures positions of $2bn within three months and $1.4bn for three months to one year.

Secondary Government securities market turned bullish last week as strong demand pushed yields lower across 2026–2034 maturities (e.g., 2026 around 8.00%–8.10%, 2029 ~9.37%–9.46%, 2032–33 ~10.40%–10.62%) amid robust volumes. USD/LKR closed at Rs.304.80/304.90 and interbank liquidity surplus narrowed to Rs.118.29bn.

Private credit in Sri Lanka rose to a monthly record Rs236.3bn in September 2025, pushing 12-month private credit growth to 22.1% and taking year-to-date disbursements to Rs1,364bn. Analysts warned that high credit growth alongside easing monetary conditions and falling reserve collections could pressure the rupee and inflation, prompting calls to tighten the central bank's inflation target.

Sri Lanka's gross foreign reserves were $6,216m in October 2025, down $27m month-on-month and $256m year-on-year. The central bank has been unable to lift gross reserves since Oct 2024 and its dollar purchases in 2025 have helped drive currency depreciation amid expected ADB/IMF support.

Sri Lanka's central bank tightened vehicle credit from Nov 08, 2025, cutting LTVs to 70% from 80% for commercial vehicles, to 50% from 60% for cars/vans/SUVs, keeping three‑wheelers at 50% and other vehicles at 50% (from 70%). The move is a prudential and balance‑of‑payments measure amid 2025 rupee depreciation.

President Anura Kumara Dissanayake urged controlling pressure on the exchange rate while presenting the 2026 budget, noting the rupee fell from 297.57/USD in Jan 2025 to 304.42 by Oct 2025. He blamed central bank dollar purchases, unsterilized liquidity and a projected 2025 budget deficit of 4.5% of GDP for depreciation.

Ceylon Chamber Chair Krishan Balendra said Budget 2026 continues post‑crisis fiscal discipline, citing strong revenue growth, low inflation, a smaller fiscal deficit and a current‑account surplus, and noted commercial banks have begun offering 10‑year fixed‑rate mortgages.

President Anura Kumara Dissanayake said Sri Lanka’s 2025 debt service totals US$2,435mn, of which US$1,948mn was paid by September and US$487mn is due by Dec 31. The Treasury is using multilateral loans and central bank reserves to repay, and analysts warn inadequate monetary tightening could force FX sales that would spur depreciation, suggesting dollar taxes on exporters or neutral FX purchases.

President Anura Kumara Dissanayake announced in the 2026 budget concessional housing loans and a contributory pension scheme for Sri Lankans working abroad, with an initial allocation of 2 billion rupees from the Sri Lanka Bureau of Foreign Employment to be implemented in 2026.

Sri Lanka's rupee closed broadly flat at 304.80/90 per US$ and government bond yields fell across tenors, with strong demand for 2028-29 notes.

Sri Lanka is targeting a budget deficit of 5.1% of GDP in 2026, with a revised out-turn of 4.5% in 2025. Total revenues are targeted at 5,270 billion rupees (15.3% of GDP) and public investment is set at 1,380 billion rupees, up from 1,033 billion in 2025.

President Anura Dissanayake said Sri Lanka's 2025 budget deficit is expected to be 5.2% of GDP, below the originally projected 6.7%. He contrasted this with past projection overruns (e.g., 2020 projection 7.9% vs outturn 10.9%) and said projections now have credibility.

Sri Lanka's cabinet has approved the 2026 budget; President Anura Kumara Dissanayake will present the budget today at 1:30 pm.

Sri Lanka's rupee opened weaker at 304.90/305.05 to the US dollar and government bond yields ticked up across maturities (e.g., 15.09.2027 quoted 8.75/78% vs 8.70/75%). The ASPI opened up 0.17%.

John Keells Holdings said Keells supermarkets recorded 14% same-store sales growth and 19% footfall growth in 2025, and opened two outlets bringing the total to 142. The company noted lower spend per visit but higher cumulative customer spend and plans further expansion.

Secondary bond yields fell further on strong buying, with 01.08.26 at 8.05%, 15.12.26 at 8.10% and 2029 tenors down around 9.45–9.55%; secondary bond volume was Rs.18.80bn. Money markets showed a net liquidity surplus of Rs.125.92bn and USD/LKR closed near 304.85/304.95.

Sri Lanka's rupee closed weaker at 304.85/95 to the US dollar on Thursday, while government bond yields slipped (e.g. 15.09.2027 at 8.70/75%, 15.02.2028 at 8.97/9.02%).

Ceylon Petroleum Corporation's net profit fell 17.9% to Rs. 17.0 billion in 1H2025 as turnover dropped 19.3% to Rs. 439.5 billion, driven by lower global oil prices and a stronger rupee. CPC also cut dues to Iran to $130.96m by end-June via ongoing tea-for-oil settlements.

Weekly Treasury Bill auction held yields steady at 7.52% (91-day), 7.90% (182-day) and 8.04% (364-day), but was undersubscribed, raising Rs.66.96bn (86.4% of Rs.77.5bn offered). Secondary bond yields consolidated, money-market rates were ~7.90%-7.96% with a Rs.133.17bn liquidity surplus and USD/LKR at 304.65/304.80.

Sri Lanka's rupee weakened to 304.80/305.00 per USD while government bond yields fell about 3–4 basis points; the ASPI opened up 0.65% at 23,103.42.

President Anura Kumara Dissanayake will present the 2026 Budget (second reading of the Appropriation Bill) to Parliament tomorrow (7 Nov). Debates on the second reading run from 8 Nov with votes and committee stages scheduled through 5 Dec, including the second-reading vote on 14 Nov and the third-reading vote on 5 Dec.