News & market updates

Vidullanka submitted the lowest bid of 3.77 US cents/kWh for the Ceylon Electricity Board's 2×50 MW Mullikulam wind tender; Windforce bid 3.96, Hayleys 4.17, ACL 4.33 and Aitken Spence 4.805. Bids are below the prior 4.65 cents award and reflect efforts to cut generation costs amid a weak rupee.

Sri Lanka’s rupee opened weaker at 304.25/45 to the US dollar (from 304.10/25) and short-term government bond yields dipped, notably 2028 maturities. The ASPI fell 0.08% to 22,769 and Rs.57,000 million in Treasury bills will be auctioned on 29 Oct.

Sri Lanka ran a marginal current-account surplus of 6 billion rupees in Jan–Sept 2025 as tax and non-tax revenues rose while recurrent spending grew; the overall deficit was 441 billion rupees after grants. The central bank missed its 5–7% inflation target and the rupee has begun to depreciate amid policy framework concerns.

Foreign holdings in Sri Lankan government securities rose to Rs.130.96 billion as of 23 October, the highest since 16 November 2023; foreign investors made net purchases of Rs.606 million in the week and cumulative inflows since 26 December 2024 total Rs.61.7 billion.

Secondary bond market opened steady with yields broadly unchanged—01.06.26 at 8.25%, 15.03.28 at 9.20%, 01.09.28 at 9.30%, and total secondary Treasury turnover Rs.11.73bn. The rupee weakened slightly, with USD/LKR at Rs.304.10/304.25 and net liquidity surplus at Rs.135.06bn.

Central Bank of Sri Lanka appointed Dr. C. Amarasekara and K.G.P. Sirikumara as Deputy Governors. Amarasekara is a monetary-policy specialist and former IMF Alternate Executive Director; Sirikumara has led currency management, public debt, deposit insurance and financial-sector reform functions.

Central Bank of Sri Lanka appointed Dr. C Amarasekara and Mr. K G P Sirikumara as Deputy Governors effective 24.10.2025 and 03.11.2025 respectively. Both are long-serving central bank executives with experience in monetary policy, market operations, public debt and financial sector regulation.

Tokyo Cement Group reported Q2 turnover of Rs. 16,322 million and PAT of Rs. 1,003 million for the quarter ended 30 Sept, versus turnover of Rs. 13,833 million and PAT of Rs. 1,082 million a year earlier. Volumes were stable but margins contracted due to capitalisation of the Trincomalee expansion as the company cited a construction-led recovery supported by lower rainfall, low interest rates, stronger remittances and ongoing infrastructure projects.

Foreign holdings in Sri Lanka's rupee treasury bonds rose to 130.96 billion rupees as of Oct 23, the highest since Nov 16, 2023, with net inflows of 24,383 million rupees over the past nine weeks.

Sri Lanka's rupee closed weaker at 304.10/25 to the US dollar on Monday (from 303.70/85 on Friday). Government bond yields were largely steady — the 15.12.2026 note at 8.25/30% and the 15.09.2027 around 8.80/88%.

Sri Lanka and Australia signed bilateral agreements to reschedule about USD 39 million of Australian-held external debt, advancing Sri Lanka's external debt restructuring. The agreements were signed on 27th by Dr. Harshana Suriyapperuma for Sri Lanka and Matthew Duckworth for Australia.

Sri Lanka's rupee opened at 303.90/304.00 to the US dollar, slightly weaker than Friday's 303.70/85; government bond yields were broadly steady (e.g. 2028 ~9.19%, 2029 ~9.70%) and the ASPI was up 0.40% at 22,903.

Outbound departures for foreign employment fell 5% in 1H 2025 to 143,037 workers, while remittances rose to $695.7m in September and $5.8bn in the first nine months (up 20% y/y).

Overseas Realty (Ceylon) PLC (OSEA.N0000) reported group PBT of Rs. 6,809 million and group revenue of Rs. 8,984 million for the nine months ended 30 Sep 2025. A Rs. 313 million net exchange loss was recorded, offset by Rs. 2,331 million fair-value gains from investment properties; EPS was Rs. 5.20 and NAV/share Rs. 51.17.

Secondary bond market remained steady with yields broadly unchanged while foreign holdings of rupee government securities rose by Rs. 608 million (third consecutive weekly inflow). The rupee depreciated to about Rs. 304 and a Rs. 57 billion T-bill auction (91/182/364-day) is scheduled this week.

Sri Lanka's call and repo rates rose to about 7.90–7.95% last week as excess liquidity fell and market volumes increased, while the rupee weakened. Analysts say the central bank's 7.75% single policy rate is constraining interbank activity and complicating monetary rebalancing.

Sri Lanka worker departures for foreign jobs fell 5% to 143,037 by June 2025, with monthly outflows easing from February before a May uptick. The central bank links the easing to recovery in activity and wages and the piece notes ties to remittances, policy and rupee moves.

The Committee on Public Finance approved the 2026 Appropriation Bill after Ministry of Finance briefings on proposed sector allocations and fiscal targets; President Anura Kumara Disanayake will present the Budget speech on 7 November.

SriLankan Airlines reported a Group loss of Rs. 2,735 million for FY2024/25, versus a profit of Rs. 7,925 million in FY2023/24. The change was mainly due to a much lower exchange gain (Rs. 3,925m in FY25 vs Rs. 26,717m); excluding exchange gains the FY25 loss was Rs. 6,660m (vs Rs. 18,792m).

Rupee closed slightly weaker at 303.70/85 per US$ on Friday, while government bond yields were broadly steady — the 15.12.2026 bond at 8.25–8.30% and the 15.12.2032 bond around 10.50–10.65%.

Sri Lanka's rupee was quoted at 303.50/70 to the US dollar, slightly firmer from 303.65/75, while secondary-market bond yields eased on 2028-2029 tenors (e.g. 15.03.2028 at 9.18–9.22%). The ASPI opened up 0.33% at 22,927.

Margin loans by Sri Lanka banks rose to Rs60 billion from Rs48 billion between January and August 2025, about a 25% increase, the central bank's macroprudential director said. The central bank's Financial Stability Review said bank exposure remains small but flagged rising stock-market volatility and other financial risks.

Secondary Treasury yields held broadly steady across the curve while secondary market turnover was Rs. 26.69 billion on 22 October. Net liquidity surplus was Rs. 123.31 billion, SDFR deposits Rs. 138.91 billion, SLFR withdrawals Rs. 15.60 billion, overnight call/repo ~7.90%, and USD/LKR closed at 303.65/303.75.

SriLankan Airlines reported a Group loss of LKR 2,735 million for 2024/25 versus a profit of LKR 7,925 million in 2023/24, mainly due to a much smaller exchange gain (LKR 3,925m vs LKR 26,717m). Excluding exchange gains, the underlying loss was LKR 6,660m (vs LKR 18,792m previously).

Tokyo Cement Group reported Q2 (30 Sep 2025) turnover of Rs.16,322 million and PAT of Rs.1,003 million versus Rs.13,833 million turnover and Rs.1,082 million PAT a year earlier; margins contracted due to capitalisation of the Trincomalee expansion projects.

Sri Lanka's rupee closed weaker at 303.65/75 per US dollar, down from 303.40/50 the previous day; government bond yields were broadly steady, with the 15.12.2026 bond at 8.35% and other maturities showing only minor changes.

Sri Lanka expects about US$1.5bn of vehicle imports in 2025, up from an earlier US$1.0bn estimate, which should boost tax revenues and narrow the budget deficit; imports are expected to normalize next year and car prices are falling.

Sri Lanka's rupee opened at 303.58/63 to the US dollar, slightly weaker than 303.40/50 the previous day, while bond yields were broadly steady (e.g. 15.12.2026 at ~8.30-8.35% and 15.12.2029 at ~9.70-9.75%). The Colombo Stock Exchange opened higher with the ASPI up 0.48%.

Prof. Wasantha Athukorala said domestic debt growth has eased to about Rs. 49–50 billion a month in the first half of 2025, signalling stabilisation in borrowing. He urged land, labour and capital market reforms to lift underperforming FDI, noting BOI approvals of $861m across 81 projects Jan–Aug 2025.

Treasury bill auction accepted Rs.39.62 billion with weighted average rates at 7.52% (91-day), 7.89% (182-day) and 8.02% (364-day), while the USD/LKR spot rate slipped to Rs.303.40/303.50. Net liquidity surplus was Rs.119.08 billion and secondary market turnover was Rs.3.24 billion on 21 Oct 2025.