News & market updates

Fitch affirmed People's Bank's National Long-Term Rating at 'AA-(lka)' with a stable outlook. Fitch cited the bank's financial strength but said heavy sovereign exposure, rising interest rates and higher credit costs will pressure profitability and flagged rising pawning concentration (~19% of gross loans).

Sarvodaya Development Finance PLC held Achievers' Night 2026 on 11 July, awarding 75 employees cash prizes and selecting 29 top performers for overseas tours. Awards spanned 10 categories (including Best Gold Loan Officer and Best Deposit Mobiliser) and five upcoming branches were recognised.

CBSL said loan-to-value (LTV) limits for motor-vehicle and gold-backed loans will remain as macroprudential measures. Governor Nandalal Weerasinghe added there is no indication the Finance Ministry will change or suspend the vehicle import surcharge.

Asian stocks rose, led by a rebound in semiconductor shares as MSCI's Asia-Pacific ex-Japan index gained 1.2% and South Korea's Kospi jumped over 6%. Brent crude nudged to $91.55/bbl and markets are focused on upcoming US earnings and central bank meetings.

HDFC Bank (HDFC.N0000) said it diversified in 2024–25 into leasing (Super Draft Leasing), gold purchase loans, personal loans and green financing aligned with the Central Bank's Green Taxonomy. The bank also introduced green deposit products and named Hemal C. Lokugeegana as CEO to drive sustainable growth from 2026.

Abans Finance PLC (AFSL.N0000) opened four new branches—Ambalangoda, Moratuwa, Horana and Kiribathgoda—bringing its network to 22 after reporting FY ended 31 Mar 2026 profit after tax of Rs.857 million (up 101%). Total assets rose 54% to Rs.20.81 billion and customer deposits reached Rs.11.04 billion.

LOLC Finance PLC opened two new branches in Mirigama (18 June 2026) and Galagedara (2 July 2026) to expand its islandwide footprint and offer its full range of financial and digital services.

Asian shares slipped as Gulf fighting pushed Brent crude above $90/bbl, stoking inflation fears and increasing the likelihood of earlier Fed rate hikes. Packed tech earnings and AI valuation worries add downside risk to equities while higher yields support fixed income.

Softlogic Finance (CRL.N0000) reported a financial year profit of approximately Rs.150 million and says its Capital Adequacy Ratio is about 61%. The company notes assets >Rs.7.5bn, a lending portfolio ~Rs.6.7bn, deposits >Rs.3.8bn and zero non-performing loans on new originations.

LOLC Holdings PLC's fully owned subsidiary LOLC Microfinance Bank Pakistan inaugurated a new head office in Islamabad as it expands operations, managing a loan portfolio exceeding $70m, deposits over $90m and a network of 88 branches.

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.

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.

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 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.

Siyapatha Finance, Sampath Bank's fully owned subsidiary, opened its 64th branch in Bandarawela as part of its 2026 expansion. The branch will offer leasing, deposits, gold financing, business and personal loans, factoring and Smart Pay bill services; Siyapatha holds a Fitch A(lka) Stable rating.

LCB Finance reported a 55% rise in PBT to Rs. 439 million for the year ended 31 March 2026, with total assets at Rs. 12.87 billion. Operating income rose 36.9% to Rs. 1.34 billion, lending grew 32% to Rs. 10.30 billion, gold loans surged 136% and deposits rose 35% to Rs. 6.29 billion.

Asian stocks drifted lower despite Samsung Electronics forecasting a 19-fold jump in Q2 operating profit, as the yen hovered near 40-year lows, oil prices rose modestly and U.S. yields inched up amid geopolitical and Fed policy uncertainty.

Asian shares eased as investors awaited a key AI earnings season and oil slipped after OPEC+ raised output targets; softer U.S. payrolls and lower energy costs cut the chance of an imminent Fed hike. Futures imply about a 78% probability of no rate change at the July 29 meeting.

Asian stocks rose (MSCI Asia-Pacific ex-Japan up ~1.3%) after a softer-than-expected US jobs report reduced near-term Fed rate-hike odds and regional PMIs showed economic expansion in June.

Asia Asset Finance PLC opened a new Training and Development Centre in Kurunegala. The centre will provide induction, residential and management training to strengthen governance, compliance, employee retention and service quality across the company's finance operations.

People's Bank marked its 65th anniversary on 1 July and reports consolidated assets of over Rs. 3.7 t. The bank serves 15.2m customers (4m digital users), operates 745 branches and 300+ SBUs, opened a new head office and pledged Rs.300m to the Rebuilding Sri Lanka Fund.

Asian stocks closed a strong quarter — Japan's Nikkei is set for a ~36% quarterly rise and South Korea's KOSPI about 65% — as a resurgent dollar (index +1.3% this quarter) pushed the yen to a four-decade low of 162.41 and sent gold sharply lower; Brent crude at $72.49/bbl.

Richard Pieris Finance reported Profit Before Taxes of Rs.701.6 million for the year ended 31 March 2026. Profit after tax was Rs.448.7 million (up 76%), total assets Rs.24.57 billion, customer deposits Rs.11.68 billion, loans Rs.10.84 billion, and Fitch affirmed A(lka) Stable.

Asian shares pulled back after Apple raised iPad and MacBook prices (Apple shares slid 6.1%), denting chip stocks and sending MSCI’s Asia‑Pacific ex‑Japan index down 3.8%; the yen hovered near 40‑year lows and Brent crude fell to $73.9/bbl.

Asia Asset Finance PLC announced a Rs.1,503,894,999.60 rights issue of 45,162,012 ordinary voting shares at Rs.33.30 each (4 new for every 11) to strengthen Tier 1 capital and support lending growth; the offer is subject to CSE in-principle and shareholder approval.

Asian equities surged after strong Micron and Qualcomm earnings eased AI-related worries, lifting MSCI Asia-Pacific ex-Japan about 1.6% with Japan's Nikkei >4% and South Korea's KOSPI +5.5%. Oil fell to roughly $72.5/bbl and gold slid below $4,000 amid a firmer dollar and lingering rate-hike expectations.

Richard Pieris Finance reported Profit Before Tax of Rs. 701.6m and Profit After Tax of Rs. 448.7m for the year ended 31 Mar 2026; total assets rose to Rs. 24.57b, customer deposits to Rs. 11.68b, loans and lease receivables expanded and Fitch affirmed an A(lka) Stable rating.

Asian stocks wobbled after a global tech- and semiconductor-led selloff, with MSCI’s Asia-Pacific ex-Japan index down 0.02%. Market caution was driven by concerns about higher interest rates (Fed/BoJ), falls in oil and gold, and volatility around currencies and tech sector valuations.

Lanka Credit and Business Finance PLC opened its 25th branch in Wellawatta on 11 June 2026 and plans to expand its branch network to 30 outlets by year-end. The new branch will offer deposit and lending products, including gold loans, business loans and housing loans.

Asian markets rose after Iranian and US negotiators reported progress in peace talks, helping Brent crude drop 1.9% to $79.01/bbl; at the same time a hawkish Federal Reserve outlook kept Treasury yields and the dollar firm, keeping rate risks prominent.