News & market updates

Siyapatha Finance PLC opened its 64th branch in Bandarawela as part of its 2026 expansion strategy. The branch will provide leasing, fixed deposits, gold financing, business and personal loans, factoring and bill payment (Smart Pay) services to local customers and SMEs.

Rupee closed at 336.00/60 to the US dollar, slightly weaker than 336.00/30 the previous day; government bond yields rose, with the 15.12.2029 note at 11.05/15% and the 15.12.2032 note at 11.65/75%.

Sri Lanka's ASPI fell 0.60% to 21,697.72 as markets slowed amid escalation in the Middle East and global instability. Seylan Bank, Lanka IOC and Malwatte Valley Plantations were among gainers while Commercial Bank, Melstacorp, Lion Brewery and Hayleys led declines; Vidullanka authorised a first gross dividend of Rs0.20 per share to be dispatched by Aug 7, 2026.

Parliament approved a new four-tier National Tariff Policy (0%, 10%, 20%, 30%) and two export orders covering 8,225 HS codes, replacing the prior 0/15/20% bands. The government also set a phased CESS removal through 2029 to lower intermediate and consumer import costs and support exports.

The Committee on Public Finance approved submitting to Parliament a Customs Ordinance resolution and two Export Development Act orders to implement a National Tariff Policy that restructures import duties into four bands (0%, 10%, 20%, 30%) from 1 April 2026 and reduces ceramic-tile taxes to 20% by 2029. The reforms aim to simplify tariffs, phase out para-tariffs by 2029 and support the EDB’s target to double exports from US$18bn to US$36bn over five years.

Sri Lanka will begin paddy procurement for the 2026 Yala season from July 15, with the Treasury allocating Rs6 billion and state banks providing Rs10 billion in Odapana loans. The Paddy Marketing Board holds about 120,000 mt, with tenders to release ~60,000 mt and 20,000 mt supplied to Sathosa.

The weekly Treasury Bill auction raised the full Rs.100 billion with weighted average yields broadly steady: 91-day 10.21%, 182-day 10.30% and 364-day 10.21%. Secondary bond yields rose and the rupee weakened to ~LKR 335.75/336.20 amid renewed Middle-East tensions and higher oil prices.

The ASPI fell 0.61% (133.80 pts) to 21,828.50, extending its slide to a seventh straight session. Market turnover was Rs.2.25bn on 210.1m shares with foreign net selling of Rs.22.5m and major negative contributors including Sampath, Hayleys, Dialog, LOLC and HNB.

Yesol Lanka, a BOI-approved Puttalam venture, converts fish-processing waste into exported fishmeal, fish oil and paste, shipping 30,000–35,000 tonnes annually and earning $2–2.5m. The $3m plant can process up to 100 mt/day, employs 45 directly and pays collectors Rs.20–30/kg.

UAE investors make up 19% of foreign investor interest in Port City Colombo, with Singapore, China and the UK at 13% each, while South Asian investors—notably India—remain underrepresented; officials see this as a key growth opportunity. The development is an SEZ offering single-window approvals, unrestricted foreign ownership, multi-currency transactions and fiscal incentives.

Hela Apparel Holdings (HELA.N0000) has appointed Emerald Investments Ltd to manage its Egypt manufacturing facility under a Management Service Agreement signed 7 June through 31 December 2026, with an option for Emerald to acquire the unit; the move aims to address working capital constraints and maintain production.

Arcasia Investment & Trading Ltd and ATX Partners have entered binding agreements to acquire a 50.16% controlling stake (1.88 billion shares) in Industrial Asphalts, triggering a Mandatory Offer; the offer price and terms will be announced after SEC approval.

Brent crude rose 5.3% to $78.10/bbl and WTI gained 5.4% to $74.31 after renewed US–Iran hostilities, triggering a global market sell-off. Major U.S., European and Asian indices fell as investors reassessed geopolitical risks to energy supplies.

Sri Lanka welcomed 34,721 tourists in the first six days of July, a 3.6% YoY decline, while YTD arrivals stand at 1.18 million, 2% below the same period in 2025. The country is targeting 3 million arrivals and $4 billion in tourism earnings for 2026, requiring stronger momentum in H2.

President Anura Kumara Dissanayake pledged the largest-ever Budget allocation for drinking water projects in the 2027 Budget. He reviewed 2026 project progress, urged consolidation of overlapping institutions, and instructed expedited resettlement and low-income housing support, citing Kandy North, Greater Colombo wastewater, Ambatale and Anuradhapura North projects.

Heads of the IEA, IMF, World Bank and WTO said the war in the Middle East is straining energy, trade and food security and pledged coordinated support and readiness to act. They noted fuel and fertilizer prices have fallen since June but uncertainty and transit strains persist.

People's Leasing & Finance PLC posted PAT of Rs.5.08bn (41% YoY) and PBT of Rs.8.56bn for FY2025/26, with total assets up 65% to Rs.321.23bn; the annual report also highlights new AI-powered and digital reporting features.

Dividend · Rs 0.20 · XD Jul 20, 2026

First Interim dividend of LKR 0.2/share; XD 2026-07-20; record 2026-07-21; payable 2026-08-07; FY For the year 2026/2027

Asian shares rose as semiconductor stocks rebounded while Brent crude jumped to about $78.65/bbl after renewed Gulf hostilities, pushing up global bond yields and increasing markets' bets on further Fed rate hikes.

Sri Lanka's rupee weakened to 336.65/75 per US dollar (from 336.00/30) and government bond yields rose, with the 01.08.2030 quoted at 11.38/45% (up from 11.30/35%).

The Ceylon Chamber of Commerce's Commercial Documents Registration Division has launched a Free Sale Letter service to help Sri Lankan pharmaceutical manufacturers and exporters meet international compliance requirements. The service expands CDRD's trade documentation offerings, including Certificates of Origin and support via the e-DAS system.

The Ceylon Chamber's Commercial Documents Registration Division introduced a Free Sale Letter for pharmaceuticals to expand export documentation support for Sri Lankan pharmaceutical manufacturers and exporters. The division also issues Certificates of Origin and other certified export documents via a 24/7 e-service and e-DAS attestation.

DarazMall's opening of Daraz Sri Lanka's 7.7 Super Savings Sale drove nearly 10x sales growth for official brand stores; participating brands saw ~8x orders, store visits rose 5x and average order value increased threefold.

FTZ Toastmasters Club has launched a membership drive across Gampaha District targeting school leavers, university students, entrepreneurs and professionals to build communication, public speaking and leadership skills. Established in 2005, the club uses the Toastmasters educational programme and cites several distinguished alumni.

Maliban renewed its title sponsorship of the S. Thomas' College Hockey Programme for another year, continuing support after a strong 2025 season and backing youth development and school hockey fixtures.

Seylan Bank (Seylan Cards) was the Title Partner of Pickleball Slam 2026, sponsoring the event to promote lifestyle and wellness and to engage existing and potential cardholders.

Access Solar and Access Real Estate have named javelin thrower Rumesh Tharanga as their corporate brand ambassador in a sponsorship running through the 2028 Olympic Games. The partnership will provide financial and logistical support for Tharanga and his coach and is presented as part of the Access Group's commitment to sports development.