Company filings and market news from across Sri Lanka's stock market.
ASPI fell 0.29% to 21,145.73 while the S&P SL20 rose 0.03% to 5,945.01; turnover exceeded Rs.3.2bn with foreign net inflow of Rs.79.8mn and a Rs.2.3bn crossing in Cargills driving volume. Negative contributors included CINS, COMB, RICH, CARS and HARI; Melstacorp, NTB and HNB were also active.
Sri Lanka's Colombo Stock Exchange closed down: ASPI fell 0.50% to 21,424.71 with market turnover of Rs.1.089 billion and banks leading turnover at Rs.221.1 million. Merchant Bank (MBSL) set a rights reference price of Rs.0.30 and its stock closed down 5.31% at Rs.10.70.
Rights issue · 4:21 at Rs 10.00 · XD Jul 7, 2026
Merchant Bank of Sri Lanka & Finance PLC (MBSL) appointed veteran banker Russel Fonseka as Chief Executive Officer. Fonseka brings 30+ years' banking experience and was General Manager/CEO of Bank of Ceylon until August 2025.
Fitch says Sri Lanka's central bank tighter capital rules for gold-backed loans (10% risk weight for LTV<70% from 1 Sep) will be manageable for banks but hit finance companies harder; Asia Asset Finance, L B Finance, UB Finance, HNB Finance and MBSL face the largest capital impacts.
Fitch says Sri Lanka’s new risk weights for gold loans (10% for <70% LTV; 40% for 70–100% LTV; 100% for >100% LTV) will raise average risk density to ~12% for banks and ~26% for finance firms and could cut finance companies’ Tier‑1 ratios by ~1pp to a little over 5pp, with Asia Asset Finance most affected.
Fitch says the CBCSL directive raising risk weights on gold-backed loans will raise average risk density to ~12% for rated banks and ~26% for finance companies, cutting banks' CET1 by ~2–35bp and finance companies' Tier‑1 by about 1pp–>5pp. Asia Asset Finance, L B Finance, UB Finance, HNB Finance and MBSL are singled out as most affected.
Rights issue · 4:21 at Rs 10.00 · XD Jul 7, 2026
Rights issue · 4:21 at Rs 10.00 · XD Jul 7, 2026
Merchant Bank of Sri Lanka & Finance PLC (MBSL) proposed a Rs. 999.1 million rights issue of 99,912,312 non-redeemable preference shares at Rs.10 each. The raise, with dividends tied to the five-year Government securities yield plus 100bps (capped at Rs.1.05), is intended to bolster Tier I capital to meet Finance Companies Direction No.3 and address Central Bank restrictions.
Merchant Bank of Sri Lanka & Finance PLC (MBSL) recalibrated the MBSL Midcap Index effective 1 January 2026, setting the midcap market-cap range at Rs. 8.45 billion–Rs. 84.5 billion and selecting 25 constituents. New inclusions include Sierra Cables, Aitken Spence, Vallibel Finance, Lanka IOC, JAT Holdings and Prime Lands; Citizens Development, CIC, Ceylon Grain Elevators, John Keells, Hayleys Fabric, Teejay Lanka and Watawala Plantations were excluded.
Priyantha Herath was appointed to the Board of Merchant Bank of Sri Lanka & Finance PLC (MBSL) as an Independent Non-Executive Director. He brings over 27 years' experience, including CFO roles and as Founder/CEO of PNB Holdings.
Sri Lanka's ASPI fell 0.36% to 22,292.28 while the S&P SL20 dropped 0.43% to 6,198.82; top decliners included Sampath Bank, HNB, Melstacorp, John Keells and C T Holdings, and Merchant Bank of Sri Lanka & Finance was the biggest gainer. Market turnover was 5.6 billion rupees.
Merchant Bank of Sri Lanka & Finance (MBSL) saw its Rs.1.0bn five-year debenture issue attract Rs.2.34bn in bids (oversubscribed); Type A pays 12.50% p.a. and Type B 11.75% p.a., and Fitch rated the issue 'BBB+(lka)'.
Fitch assigned Merchant Bank of Sri Lanka & Finance PLC's proposed subordinated debentures of up to Rs.1 billion a final National Long-Term Rating of 'BBB+(lka)'. The five-year rupee notes will be listed on the CSE and proceeds will be used to bolster Tier 2 capital and support loan-book expansion.
Merchant Bank of Sri Lanka & Finance PLC (MBSL) had its proposed subordinated debentures of up to LKR1 billion rated 'BBB+(lka)' by Fitch; the five-year rupee notes will be listed on the CSE and proceeds will bolster Tier 2 capital to support loan-book expansion.
Fitch published an expected national long-term rating of 'BBB+(EXP)(lka)' on Merchant Bank of Sri Lanka & Finance PLC's proposed Rs. 1 billion five-year subordinated debentures, which will be listed on the CSE. Proceeds are intended to strengthen Tier-2 capital and support loan-book expansion; final rating subject to documentation.
Fitch assigned Merchant Bank of Sri Lanka & Finance PLC's proposed LKR1 billion five-year subordinated debentures an expected national long-term rating of 'BBB+(EXP)(lka)'. MBSL, whose national rating was upgraded to 'A(lka)' in January, plans to use proceeds to strengthen Tier-2 capital and support loan-book expansion.
Merchant Bank of Sri Lanka & Finance PLC will issue up to 10 million 5-year unsecured subordinated debentures to raise Rs1 billion, initially offering 5 million at Rs100 each and a further 5 million if oversubscribed; issuance subject to regulatory approvals.
Chandima Rodrigo was appointed Independent Non-Executive Director of Merchant Bank of Sri Lanka & Finance PLC (MBSL), filling the vacancy left by Prof. N.S. Punchihewa. Rodrigo has over 30 years' experience in law and finance with senior roles across multiple sectors.