News & market updates

The Sri Lanka Banks Association pledged full support to revive the economy after Cyclone Ditwah and said banks will conduct impact assessments and offer a Disaster Debt Relief Package for affected customers. Member banks may also delay gold loan auctions and will coordinate relief with the CBSL and government.

Colombo Stock Exchange ASPI fell 1.87% to 21,826.59 and the S&P SL20 dropped 1.75% to 6,030.66. Top decliners included Ceylinco Holdings, Melstacorp, Commercial Bank, Senkadagala Finance and Bukit Darah; construction names Access Engineering and Sierra Cables also slid, and Hemas appointed Ajith Fernando as chairman effective Jan 1.

Colombo Stock Exchange recovered as the ASPI rose 1% (219.51 pts) to 22,241.57, led by gains in diversified financials and construction-related shares, with notable rises in Ceylinco, Sampath, NDB, Bukit Darah, Sierra Cables and ACL Cables.

Asia Asset Finance PLC (AAF) reported 6M PBT up 150% YoY to Rs. 983.06 million. ROE rose to 20.12%, NIM improved to 11.01%, lending portfolio expanded to Rs. 36.7bn, NPL ratio fell to 9.39%, Core CAR >25% and branches increased to 107.

Global gold reserves reached about $4.83 trillion in November 2025 as central-bank buying pushed gold to $4,135.80/oz (a 44.66% value rise since Dec 2024). Poland and Kazakhstan led 2025 purchases year-to-date, while China resumed accumulation with 1.2t in Sept and 0.9t in Oct.

Mercantile Investments and Finance PLC surpassed Rs. 100 billion in total assets and posted a half-year PAT of Rs. 504 million (up 35% YoY), driven by loan growth to Rs. 75 billion and 40% deposit growth; Fitch Lanka also reaffirmed its BBB-(Ika) rating with a stable outlook.

Richard Pieris Finance Ltd. reported a profit before taxes of Rs. 292 million for the six months ended 30 September, a year‑on‑year increase of over 75%. Total assets exceeded Rs. 20 billion (up ~20%) and the company holds an 'A(lka)' Fitch rating with a Stable Outlook.

Richard Pieris Finance Ltd said it is forging ahead with resilience and growth, citing steady profitability, portfolio diversification, digital transformation, a new Sarumaga mortgage product and a Fitch 'A(lka) Outlook Stable' rating.

Sri Lanka's rupee closed at 307.80/95 to the US dollar on Friday, depreciating over the week from 306.90/307.20 last Friday while government bond yields were broadly steady (e.g., 15.12.2026 at 8.15-8.25%, 15.03.2028 at 9.00-9.05%). It has fallen from 292.58 in Dec 2024 despite record current-account surpluses and a sharply reduced budget deficit.

Lanka Rating Agency urges licensed finance companies to shift from consumption lending to industry-, export- and capital-formation financing; sector PAT was Rs. 69.4bn in FY24/25, regulatory capital ~Rs.433bn (CAR ~22%) and NPLs fell to ~8.3%.

Sri Lanka's rupee opened at 307.90/308.00 to the US dollar, sharply weaker than 305.50/306.00 a week earlier. Bond yields were broadly steady and the CSE opened lower (ASPI down 0.15%), with analysts citing central bank buy-sell swaps, import dynamics and flexible exchange-rate policy as drivers of the depreciation.

Richard Pieris Finance Limited reports steady growth and a Fitch credit rating of 'A(lka) Outlook Stable', and is pursuing digital transformation and product expansion including gold loans and the Sarumaga mortgage solution.

Asia Asset Finance PLC reported Profit Before Tax of LKR 983.06 million for the six months to 30 Sep 2025, up 150% year-on-year. Lending expanded to LKR 36.7 billion led by gold loans, NPLs improved to 9.39% and NIM rose to 11.01%.

HNB Finance PLC reported Profit After Tax of Rs. 620.43 million for 1H FY2025/26, up 129% YoY, with PBT rising 160% to Rs. 1,645.70 million. Gross income grew 29% to Rs. 8,089.25 million, driven by 36% loan growth (57% in leasing), a 34% rise in deposits and a 45% jump in net interest income.

HNB FINANCE PLC reported PAT of Rs. 620.43 mn for H1 FY2025/26, up 129% YoY. PBT rose 160% to Rs. 1,645.7 mn as gross income climbed 29% and loans grew 36% (leasing +57%); assets, deposits, ROE and EPS also improved.

LB Finance (LFIN) has moved to fully acquire Associated Motor Finance (AMF) via a mandatory offer effective 29 Oct at Rs.50 per share for 113 million shares, with the Central Bank expecting the merger to complete by 31 Mar 2027. First Capital Research says the deal could add about Rs.25bn to LFIN's loan book by FY27E and support continued loan growth.

Sarvodaya Development Finance (SDF.N0000) was upgraded by Lanka Rating Agency to BBB- (Stable) from BB+ (Stable). Its loan book grew 25.4% to Rs.24bn in 6M FY26, gross NPLs fell to 6.0%, and CAR stands at 25.9% after issuing Rs.2bn of Tier II debentures.

CSE All Share Index rose 0.69% (158.99 pts) to 23,112.48 as buying on positive company results lifted the market. Top contributors were Senkadagala Finance, NDB, Colombo Dockyard, John Keells and C T Holdings, with turnover rising to 6.06 billion.

LB Finance PLC’s proposed LKR10bn senior and LKR10bn subordinated debentures (total up to LKR20bn) were assigned expected national ratings of A-(EXP)(lka) and BBB(EXP)(lka) by Fitch; proceeds are to fund loan-book growth, diversify funding and boost Tier-2 capital.

CSE ASPI closed up 0.11% at 22,953.49 while the S&P SL20 dipped 0.05% to 6,249.28. Top contributors were Senkadagala Finance (up 25%), Sunshine Holdings, Colombo Dockyard, Cargills and Aitken Spence, with market turnover down to 4.4 billion rupees.

Colombo Stock Exchange closed up 0.54% as the ASPI rose 123.47 pts to 22,928.31 and the S&P SL20 gained 0.62% to 6,252.40. Top contributors were Senkadagala Finance, Bukit Darah, John Keells Holdings and Commercial Bank; turnover edged to 5.7 billion rupees and spot gold was $4,013.70.

Siyapatha Finance, the fully owned subsidiary of Sampath Bank, opened its 58th branch in Mannar to expand its presence in the Northern Province. The branch will offer leasing, fixed deposits, gold financing, business and personal loans, factoring and Smart Pay bill payment.

Union Bank reported Profit Before Tax of Rs. 1,178 million for the nine months to 30 Sep 2025, up 52% y/y, and PAT rose 194% to Rs. 343 million. Total assets grew 17% to Rs. 171,864 million and the bank plans to raise up to Rs. 3 billion via Tier II Basel III debentures.

The US Federal Reserve cut its policy rate by 25 basis points to a 3.75–4.00% target range and said it will halt quantitative tightening, concluding reductions of its securities holdings on Dec. 1. The Fed cited slower job gains and still-elevated inflation in its statement.

Sri Lanka's ASPI rose 0.27% to 22,839.53 while the S&P SL20 fell 0.13% to 6,202.71; top contributors were Ceylinco Holdings, Colombo Dockyard, Singer (Sri Lanka), Ceylon Grain Elevators and Diesel & Motor Engineering. Market turnover rose to 7.78 billion rupees and spot gold traded at $4,010.92.

Union Bank reported PBT of LKR 1,178 million for the nine months to 30 Sep 2025, up 52% YoY; PAT was LKR 343 million (+194%), gross income LKR 13,199m (+7%), loans rose 32% to LKR 107,592m, and the bank plans to raise up to LKR 3 billion via Tier II debentures.

Lanka Rating Agency upgraded Vallibel Finance PLC's long-term entity rating to A- with a stable outlook. The rating cites FY25 profit after tax rising 22.8% to Rs.2,629m, net interest income up 15.9% to Rs.8,118m, Tier-1 CAR of 16.5%, low NPLs, a diversified lending book and plans to grow gold loans and digital services.

DFCC Bank (DFCC Aloka) partnered with Evolution Auto to launch the Mahindra Treo Pink Edition in Jaffna, linking inclusive finance and green mobility to support women entrepreneurs. At the two-day Green Wheels Carnival DFCC offered tailored finance, advisory services and retail products including leasing, personal loans and pawning.

Colombo ASPI rose 0.26% to 22,850.95 while the S&P SL20 fell 0.13% to 6,268.87; top contributors were Hayleys, Ceylon Grain Elevators, Cargills and Bairaha Farms, with market turnover at LKR 9 billion.