Sri Lanka stocks closed lower as the ASPI fell 0.20% to 21,405.41 and market turnover hit a 52-week low of Rs 722.6m. Banks led turnover at Rs 184.3m; Commercial Bank, RIL Property, Melstacorp and People's Leasing were among gainers while John Keells and Digital Mobility were among laggards, and oil prices rose on Gulf tensions.
Commercial Bank of Ceylon's Basel III Tier-2 debenture issue was oversubscribed with applications for over 200 million debentures worth Rs 20 billion against an initial Rs 10 billion offer. CSE indices traded lower (ASPI down 0.11% at 21,424.48) with banks leading turnover at Rs 54.4 million.
Colombo Stock Exchange traded higher Thursday morning, with the ASPI up 29.70 points (0.14%) to 21,447.50 and market turnover of LKR 229 million, led by banks (LKR 74.9 million). Lanka Realty Investments received LKR 1.05 billion from Lee Hedges for the final balance on its 51% stake sale, and Asia Asset Finance announced a LKR 0.70 fixed non‑cumulative preference dividend per share.
Rs.120 billion Treasury Bill auction scheduled today as secondary bond market activity picked up and yields compressed; money-market rates edged down and USD/LKR closed at 336.30/336.40.
Colombo Stock Exchange fell as the ASPI dropped 1.07% (−233.18 pts) to 21,532.38 amid escalating West Asia tensions. Banks led selling with turnover at 1.04 billion rupees; Palm Garden Hotels reported non-compliance with minimum public holding and People's Leasing listed 59,766,864 scrip shares.
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.
Colombo Stock Exchange fell, with the ASPI down 0.39% to 21,995.04 and the S&P SL20 down 0.27% to 6,150.33. Top negatives included Melstacorp, John Keells and Carson Cumberbatch while Digital Mobility Solutions, Royal Ceramics and Haycarb were positive; turnover was LKR 1.13 billion.
Colombo Stock Exchange indices rose after a delayed opening auction call, with the ASPI up 0.26% (57.99 pts) to 22,321 and the S&P SL20 up 0.31% to 6,224. The opening delay was blamed on a CSE-side technical issue that accidentally suspended active accounts after a new policy on inactive accounts; the CSE had not yet issued a statement.
Daily FT·Jul 1, 2026·Award or certificationPositive
People's Leasing & Finance PLC presented its AI-enabled 13th Integrated Annual Report for FY2025/26 to People's Bank chairman on 22 June 2026, adding WhatsApp interactions, AI video/text chatbots, multi-language and accessibility features and full compliance with SLFRS S1/S2 sustainability disclosures.
Central Bank cut LTV caps on motor financing (to 60% from 70% for >1yr vehicles; to 40% from 60% for newer/unregistered) and on gold loans (to 70% from 80%); Fitch says the tighter caps should strengthen lenders' risk profiles, especially finance companies.
Fitch says Sri Lanka's Central Bank cut LTV caps on motor financing (to 60% from 70% for vehicles >1yr and to 40% from 60% for newer/unregistered vehicles) and reduced gold-loan LTVs to 70% from 80%, measures that should strengthen lenders' risk profiles but may weigh on volumes and earnings, especially at finance companies.
Sri Lanka's forex inflows were US$2,337m in September (down from US$2,521m in August) while imports rose to US$2,048m, leaving a US$289m surplus. Vehicle and fuel import increases drove the shift and analysts warn fiscal-buffer use or liquidity injections could erode reserves and pressure the rupee and rates.
Interest RatesRupee & ForexFuel & Energy Prices
Daily FT·Oct 27, 2025·Award or certificationPositive
Alliance Finance Company PLC (ALLI.N0000) was awarded SSCI Version 2.0 Certification Level 3 at GSFC 2025, the first South Asian financial institution to reach this level. People's Leasing & Finance PLC (PLC.N0000) has already started SSCI onboarding, while other Sri Lankan banks/NBFIs have enrolled, underscoring a sector-wide push toward sustainable finance.
People’s Leasing & Finance PLC posted a 51.56% YoY increase in loans and receivables for FY25 and reported PAT of Rs.3.60 billion (PBT Rs.5.79 billion). NPLs fell ~46% to Rs.9.56 billion, total assets reached Rs.194.53 billion and capital adequacy remained above regulatory requirements.
The SEC, with ADB technical support, released a regulatory framework enabling issuance and trading of Green, Blue, Social and Sustainability‑Linked (GSS+) bonds on the Colombo Stock Exchange, allowing sovereigns and corporates to raise capital for environmental and social projects.
Experts at a CMA seminar said Budget 2025 has strengths but flagged practical concerns and tax risks, including taxing foreign service income at 15%, raising capital gains tax to 15%, and replacing SVAT with a risk-based refund; speakers urged focus on debt sustainability and SME support.
Interest RatesExportersIT & Digital
Ada Derana·Feb 26, 2025·Promotional / marketingPositive
People’s Leasing & Finance PLC relocated and upgraded its Hingurakgoda branch to a larger, modern facility at Govi Mawatha to improve service capacity and customer experience. The branch was inaugurated by Chairman Prof. Ajantha Samarakoon and the company also contributed to an elephant fence for a local school.