News & market updates

Insurance industry GWP rose 24.54% to Rs.114,863 million in 1Q 2026 from Rs.92,229 million a year earlier. Total assets grew 16.65% to Rs.1,478,777 million and industry PBT edged up 3.14% to Rs.9,978 million, with Life PBT down 11.5% and General PBT up 28.1%.

Sri Lanka rupee quoted at 336.30/50 per US dollar, slightly weaker than 336.00/20 the previous day; bond yields were slightly higher after recent government bond sales. Rs120,000 million Treasury bills auction is scheduled for July 15.

Sri Lanka sold Rs150 billion of government bonds across 2030, 2034 and 2037 maturities, with average yields of 11.57%, 12.04% and 12.58% respectively; all offered amounts were sold and are available on tap.

Commercial Bank of Ceylon (COMB.N0000) will list Rs20 billion of Basel III-compliant unsecured subordinated debentures at 13.00% and 13.25%; an initial 100 million units at Rs100 each will be offered and subscription opens July 16.

Sri Lanka's rupee closed at 336.00/20 to the US dollar, slightly weaker versus 335.70/90 on Friday; government bond yields were broadly steady with most maturities closing flat.

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.

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.

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.

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.

Foreign holdings in Sri Lanka rupee bonds rose by a net US$97.1m in the week to July 9, lifting foreign holdings to Rs168,895m — the highest since Aug 10, 2023. The inflow coincided with the rupee recovering to about 330/USD and a 100bp May policy rate hike by the Central Bank.

Sri Lanka's foreign reserves fell 6.2% to US$6,450m at end-June 2026. The central bank net-bought US$70.5m in June and US$556.4m in H1 2026, but the decline could pressure IMF reserve targets and future disbursements.

ADB lowers developing Asia and Pacific growth to 4.9% for 2026 (from 5.5% in 2025), a 0.2 percentage point downgrade from April due to prolonged energy-market disruptions. It raises regional inflation to 4.3% for this year and warns of risks from tighter financial conditions, supply-chain strains and higher fertilizer/commodity costs.

ADB retains Sri Lanka's 2026 GDP growth forecast at 4%, lowers 2027 to 4.0% from 4.2% citing the recent 100 basis-point rate hike, and raises 2026 inflation to 6% due to domestic fuel price rises and electricity tariff increases.

Sri Lanka sold Rs10,000 million of treasury bills on tap at average rates of 10.21% and 10.30%, bringing total bills sold this week to Rs110,000 million; market subscription was Rs46,180 million. The sales included 3-, 6- and 12-month bills (3- and 12-month at 10.21%, 6-month at 10.30%).

Sri Lanka's rupee closed at 335.70/90 to the US dollar, slightly stronger than 336.00/60 the prior day, while government bond yields were largely flat. Yields across quoted maturities ranged around 10.30–11.80% with little change on the day.

Sri Lanka's rupee was quoted at 335.75/90 to the US dollar in the spot market, firmer than 336.00/30 the previous day; dealers said bond yields were slightly higher, with the 15.12.2029 bond around 11.05–11.15% and 2030–2033 maturities quoted near 11.15–11.85%.

Asian stocks rose sharply, led by chip and AI firms, as investors brushed off Middle East attacks; SK Hynix priced its ADR at $149, raising about $26.5bn. Brent crude was set for a 5% weekly rise to $76.03/bbl and Japan's yen firmed after finance minister comments.

Global FDI rose 6% to $1.6 trillion in 2025, driven by a small number of megaprojects—notably AI-related data centres—while developed-economy inflows rose 11% and developing economies grew only 2% to $901bn. The recovery is narrow and concentrated, with risks from trade uncertainty, geopolitics and high financing costs for 2026.

Secondary government bond yields rose and the Finance Ministry announced a Rs.150 billion Treasury bond auction across three maturities (Rs.70bn 15 Oct 2030; Rs.50bn 15 Oct 2034; Rs.30bn 1 Jul 2037). Market liquidity increased to Rs.139.01bn and USD/LKR closed at 336.00/336.40.

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%.

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.

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%).

Sri Lanka sold all Rs100bn of Treasury bills at Wednesday's auction; 3-month yield 10.21% (-2bp), 6-month 10.30% (unchanged), 12-month 10.20% (+1bp). The 3-month sold Rs58.47bn (Rs50bn offered), 6-month sold Rs35bn, 12-month sold Rs6.53bn.

Sri Lanka rupee closed at 336.00/30 to the US dollar, weaker than 334.75/85 the previous day, while government bond yields rose across several maturities (e.g. 15.02.2028 at 10.45/55%, 15.12.2029 at 11.00/10%).

Sri Lanka's rupee weakened to 335.50/90 per US dollar from 334.75/85 and government bond yields rose; a Rs 100,000 million Treasury bill auction is scheduled for 8 July.

Brent crude rose about 2% to $75.60/bbl and 10-year U.S. Treasury yields climbed to ~4.565% as renewed Middle East fighting and U.S. moves on Iranian oil raised supply and inflation risks. Equities saw renewed volatility and the AI rally lost momentum after volatile semiconductor results.

Sri Lanka's official reserve assets fell 6.3% in June to USD 6,450m, a USD 431m drop from May, the Central Bank said. The decline was driven by a 6.1% fall in foreign-exchange reserves to USD 6,254m and an 11.7% drop in gold reserves to USD 191m.

The Treasury will offer Rs.100 billion in a T-bill auction today (Rs.50bn 91-day; Rs.35bn 182-day; Rs.15bn 364-day). Secondary bond yields were broadly steady with the short end around 10.50–10.65% and 4-year paper near 11.10–11.33%; net liquidity surplus Rs.134.77bn and USD/LKR ~335.

Colombo Stock Exchange All Share Price Index fell 141.27 points (0.64%) to 21,821 at midday. Nations Trust Bank said its Basel III-compliant Tier-2 debentures will be listed on July 8 with 5-, 7- and 10-year tranches paying 13.75%, 13.85% and 13.95% respectively.