News & market updates

Colombo Stock Exchange's ASPI fell 0.40% (86.60 pts) to 21,678.96 and the S&P SL20 dropped 0.33% to 6,057.66, with market turnover Rs194.1m as banks weighed on the index. Alpha Fire Services announced a proposed acquisition of Icon Engineering, projecting group revenue above Rs1bn, ~30% higher profitability and foreign currency inflows from Maldives projects.

AmCham Sri Lanka led a delegation to the AmChams of Asia Pacific Washington Doorknock (21–24 June 2026) to lobby US policymakers on the US–Sri Lanka bilateral trade agreement, Section 301 issues affecting exporters (notably apparel), and to seek US investment and development finance support.

Hatton National Bank (HNB.N0000) has been named Title Sponsor of the Ceylon Chamber of Women Entrepreneurs Fashion Week & International Summit 2026, to be held 16–20 July at Cinnamon Life, Colombo. HNB says the sponsorship supports women's entrepreneurship, SME development and financial inclusion.

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.

Government will implement a phased, FATF-aligned AML regulatory framework for virtual asset service providers and has proposed the SEC as prudential regulator, while cryptocurrencies remain unrecognised and banks/cards are barred from facilitating crypto transactions. Talks to enable PayPal inward receipts continue and some banks already offer Wise/Payoneer for cross-border receipts.

PMF Finance PLC has withdrawn its proposed listed, rated, unsecured senior redeemable debenture issue of up to Rs. 1 billion after a board decision following an internal assessment; the company gave no further details.

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%).

CSE ended an eight-session slide as the ASPI rose 0.31% to 21,765.56 and the S&P SL20 gained 0.25% to 6,081.43. Turnover topped Rs.2bn with foreign net outflows of Rs.673mn; top contributors included Ceylon Cold Stores, Haycarb, John Keells and RIL, while banks (Commercial Bank, Sampath) led turnover.

Media Fest 2026, Sri Lanka's full-day media industry gathering, kicks off today at the Taj Samudra, Colombo focusing on 'Staying Relevant in a Changing World' and digital transformation. Sponsors include Commercial Bank PLC, Mahindra Ideal Finance, SriLankan Airlines and Taj Samudra.

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.

Nations Trust Bank (NTB.N0000) appointed Ananda Jayawardana as an Independent Non-Executive Director; he brings 25+ years' experience in leveraged & structured finance, debt capital markets and corporate banking.

Sampath Bank's proposed LKR10 billion Basel III-compliant subordinated green bonds were assigned a final National Long-Term Rating of 'A(lka)' by Fitch. The five- and seven-year bonds, to be listed on the CSE, will bolster Tier-2 capital and finance/refinance green projects and include a non-viability conversion clause.

Union Bank CEO Dilshan Rodrigo said SMEs are understating revenues and profits—banks often reconstruct financials and find turnover about 40% higher—hindering cash-flow lending. He urged stronger audit standards, independent SME credit ratings and deeper capital markets for long-term SME finance.

Minority shareholders of Associated Motor Finance (AMF.N0000) say the proposed amalgamation with L B Finance (LFIN.N0000) undervalues AMF and have asked the SEC and CSE to review the Rs.55 per-share cash consideration; CBSL said pricing is outside its remit.

A seminar on Beneficial Ownership compliance will be held on 22 July 2026 at The Kingsbury, Colombo to provide guidance on BO filings under the Companies Act No. 12 of 2025 and CBSL Direction 2 of 2026, highlighting the statutory BO filing deadline of 30 September 2026 and non-compliance risks.

Nations Trust Bank (NTB.N0000) appointed Ananda Jayawardana as an Independent Non-Executive Director. He brings over 25 years' experience in leveraged and structured finance across Asia, with senior roles at Standard Chartered and the Royal Bank of Scotland.

Colombo market fell for an eighth session as ASPI dropped 0.60% (130.78 pts) to 21,697.72 amid renewed Middle East tensions, with turnover over Rs.1.4bn and foreign net outflow of Rs.91.7m. Declines were led by Commercial Bank, Melstacorp, Hayleys and John Keells, while capital goods, food & beverage and banking drove turnover.

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.

The Employees' Trust Fund Board will require employers with 15 or more employees to submit ETF contributions and monthly returns electronically for contributions relating to July 2026, due on or before 31 August 2026. Payments must be made via designated banks' internet banking or by direct debit; cash, cheques and printed returns will no longer be accepted.

Commercial Bank of Ceylon (COMB.N0000) was ranked No.1 banking brand in the Service Brands category and No.2 among all service brands in LMD Magazine's 2026 Most Loved Brands survey for the third consecutive year. It was also voted People's Private Banking Services Brand of the Year for the fourth consecutive year at the SLIM Kantar People's Awards 2026.

DFCC Bank PLC has entered a strategic partnership with MyFees.lk to expand digital payment and settlement capabilities across Sri Lanka's education sector. MyFees.lk serves 180+ institutions and over 650,000 students; the tie-up aims to simplify fee collection and develop further education-focused digital financial solutions.

Commercial Bank of Ceylon PLC participated in a seven-day Professional Development Program on Women Leadership in Banking (22–28 June 2026) run by BIMT Campus with AIT Extension in Thailand. The programme covered strategic leadership, AI, cybersecurity and digital transformation.

Bank of Ceylon launched BOC Flex – Tap & Pay, Sri Lanka's first mobile banking wallet-based contactless payment solution on 9 July 2026. The wallet uses virtual cards, auto top-up and NFC support to enable contactless POS and online payments, boosting digital payments and competitive pressure on other banks.

CA Sri Lanka and the Colombo Stock Exchange on 6 July launched an SME Creditworthiness Rating Framework, the SME Connect Awards and The Entrepreneur magazine to standardise SME credit assessments and boost access to finance. Workshops and guidelines will support adoption.

The 13th CFA Society Sri Lanka Capital Market Awards will be held on 10 September 2026 at the Oak Room, Cinnamon Grand, Colombo, recognising excellence in investment research, investor relations and corporate governance across Sri Lanka's capital markets.