News & market updates

Official worker remittances fell to US$695.0m in June 2026, the lowest since November 2025, but were still 9.3% higher year‑on‑year; inflows in the first six months rose 23.2% to US$4,604.8m. Analysts link the June drop to rupee depreciation since April and Middle East tensions prompting use of informal channels like Hawala.

Colombo Stock Exchange fell as the ASPI dropped 1.07% (−233.18 pts) to 21,532.38 amid escalating West Asia tensions. Banks led selling with turnover at 1.04 billion rupees; Palm Garden Hotels reported non-compliance with minimum public holding and People's Leasing listed 59,766,864 scrip shares.

The Ceylon Chamber hosted a B2B session (8–10 July 2026) for a 31-member FIEO Indian export delegation to connect Indian SMEs (pharmaceuticals, engineering, apparel, food, infrastructure) with Sri Lankan companies to explore sourcing, market expansion and commercial partnerships.

Alpha Fire Services (AFS.N0000) will acquire Icon Engineering for Rs260 million in a share-swap, issuing 9,122,807 new shares valued at Rs28.50 each. The deal gives new investors a 19.38% stake, expands MEP/HVAC operations into the Maldives and is expected to boost group profitability ~30% and bring USD inflows.

WindForce PLC secured up to US$18 million in IFC local-currency financing to develop Sri Lanka's first utility-scale 100MW solar project. IFC also committed US$10m to New Anthoney's Farms, bringing total IFC investments advised by TWC Capital to up to US$28m across renewables and agribusiness.

Sri Lanka's rupee was quoted at 335.70/336.00 to the US dollar in the spot market on Monday, while local bond yields were broadly steady (e.g. the 15.12.2029 bond at 11.00/15%). The Colombo Stock Exchange opened lower with the ASPI down 0.19% at 21,724.13.

Sri Lanka's tourism earnings fell 12% YoY to $1.51bn in 1H 2026. June receipts were $151.1m (down 11% YoY) and the government has revised 2026 targets to $3.5bn and 2.5m arrivals, requiring more than $2bn in H2 to meet the updated earnings goal.

Australia's High Commissioner Matthew Duckworth reaffirmed support for Sri Lanka's bid to join RCEP and urged continued trade reforms and full digitalisation of border processes to strengthen competitiveness and integrate into regional supply chains.

Private sector credit rose Rs.238.1bn M-o-M to Rs.11.04tn in May (2.2% M-o-M, 27.8% YoY). The CBSL raised the OPR by 100bps to 8.75% in late May to curb credit-driven import demand amid sharp rupee depreciation.

Workers' remittances rose 9.3% YoY to $695m in June, lifting January–June inflows 23.2% YoY to over $4.6bn — the strongest first half on record, bolstering Sri Lanka's foreign-exchange position amid weak exports and tourism.

Sri Lanka's official reserves fell 6.9% (US$431m) to US$6.45bn in June. CBSL estimates short-term FX outflows of US$2.15bn and short positions of US$4.04bn; IMF cut the end-2026 NIR target to US$778m and CBSL is expected to buy dollars, implying continued rupee depreciation pressure.

Senkadagala Finance PLC reported a record group profit after tax of Rs. 2.05 billion for FY2025/26 (up 16% YoY); total assets rose 40% to Rs. 57.07 billion and total capital adequacy stood at 23.84% after a Rs. 1.035 billion rights issue.

TWC Capital advised WindForce PLC on an IFC commitment of up to $18m for Sri Lanka's first utility-scale 100 MW solar project, and advised New Anthoney's Farms on a separate $10m IFC financing, totalling up to $28m in development finance.

Foreign portfolio inflows into rupee-denominated government securities totalled Rs 32.04 billion for the week ending 9 July—the largest weekly inflow since Feb 2013—raising foreign holdings to Rs 168.90 billion. Secondary bond yields re-priced higher mid-week amid rising oil prices and geopolitical risk, T-Bill auction yields broadly steady, and the rupee weakened to ~Rs 335.8; a Rs 150 billion Treasury Bond auction across three maturities is scheduled on 15 July.

Merchant Bank of Sri Lanka & Finance PLC (MBSL) appointed veteran banker Russel Fonseka as Chief Executive Officer. Fonseka brings 30+ years' banking experience and was General Manager/CEO of Bank of Ceylon until August 2025.

Dr. Hans Wijayasuriya, Sri Lanka's Chief Advisor to the President on Digital Economy, met Malaysia's Secretary‑General Datuk Abdul Halim bin Hamzah in Geneva to exchange strategic approaches for improving public digital services and AI governance. The discussion took place on the sidelines of the WSIS Forum and AI for Good Global Summit 2026.

Radisson Hotel Kandy appointed Mr. Mangala Hemananda as General Manager; he brings 20+ years' hospitality experience and led the hotel to the Quality Accelerator Award for Q1 2025 in the MEA and SEAP region.

FHIIT, a Sri Lankan functional-fitness brand, is expanding with a new facility at Orion City after six years of growth operating in Colombo and Wattala, promoting its HIART training methodology and community-driven model.

Binance held a 9th anniversary community meetup in Colombo on 12 July attended by 500+ people to promote secure blockchain literacy, wallet security and Web3 talent development. The event underscores efforts to build a local digital ecosystem aligned with Sri Lanka's shift toward digital-first growth.

The Ceylon Chamber of Commerce met Belarusian Ambassador Mikhail Kasko to explore closer private‑sector ties to boost trade in machinery, agriculture and pharmaceuticals and increase exports (apparel, tea, coconut, spices, fresh produce) and tourism via direct air links.

Sri Lanka was ranked No. 50 on Travel And Tour World's Top 50 Food Destinations for 2026. TTW highlighted Sri Lanka's aromatic spices and regional offerings from Colombo street food and coastal seafood to tea-inspired hill-country cuisine.

Medihelp Hospitals won three Gold and three Silver Awards at the National Convention on Quality and Productivity (NCQP) 2026. The awards recognise staff-led quality improvement projects across patient safety, operational efficiency and clinical processes that were implemented across the group.

Sysco LABS renewed its role as Strategic Partner of the AmCham Internship Bootcamp 2026, supporting mentorship and internship opportunities that provide final-year university students with a 'Fast Track to Corporate' experience.

Ceylon Chamber of Commerce will hold Scale Up 2.0, a National SME Forum on Aug 11 at the Taj Samudra in Colombo to connect SMEs with buyers, financial institutions, policymakers and support organisations to address market access, finance and value‑chain challenges; registrations are open.

DFCC Bank PLC has signed an MoU with Co-Energi to provide customers with energy audits, technical advisory and tailored sustainable financing for energy-efficiency projects. The partnership aims to help businesses lower operating costs and boost long-term resilience.

DFCC Bank held its annual Buddhanuwandana Poson Bhakthi Gee observances in Colombo and Kandy, livestreaming the programmes and hosting a Dansala at Kandy's Sri Dalada Maligawa to engage employees, customers and the public.