Headline CCPI inflation rose to 6.8% YoY in June 2026, a three‑year high. CBSL said non-food inflation accelerated to 8.4% and food inflation to 3.6%, raised the policy rate in late May, and expects inflation to remain above the 5% target before easing amid elevated uncertainty from the Middle East conflict.
Interest RatesConsumer Staples (FMCG)
Ada Derana·Jul 1, 2026·Promotional / marketing·UBCPositive
Union Bank of Colombo (UBC.N0000) launched the Union Bank Pension Loan allowing government pensioners to borrow up to Rs. 8 million with up to 15-year repayment, low interest, no guarantor and benefits including LKR30,000 annual PickMe rides and a LKR7,000 yearly health package at Nawaloka Hospitals.
Interest RatesHealthcare & Pharma
Ada Derana·Jul 1, 2026·Award or certification·SAMPPositive
Sampath Bank PLC retained Sri Lanka's Best Retail and Best Commercial Bank titles for the 12th year and won Best Corporate Governance – Sri Lanka 2026 at the World Finance Banking Awards. The awards highlight the bank's performance, digital capability expansion and governance practices.
Colombo Stock Exchange closed marginally lower as the ASPI fell 0.09% (‑19.58 pts) to 22,243.70 while the S&P SL20 rose 0.02% to 6,206.51. Market turnover was Rs 1.070 billion, telecoms led turnover with Rs 247.6 million, and the CSE delayed opening due to a technical issue.
Ada Derana·Jul 1, 2026·Promotional / marketing·SEYBPositive
Seylan Bank PLC partnered with AECC Global to offer tailored financing and easier foreign payments for Sri Lankan students studying abroad, including low fees and attractive exchange rates to ease funding and payments for overseas education.
Yevan David climbed from 28th to 19th in the FIA F3 Sprint Race at the Red Bull Ring but his Feature Race ended on the first lap after contact; his racing is supported by DIMO and Nations Trust Bank.
Ada Derana·Jul 1, 2026·Promotional / marketing·HAYL+1Positive
Hayleys Solar (Hayleys PLC) and PMF Finance PLC signed an MOU to provide customised financing for residential and commercial solar installations, aiming to lower upfront costs and accelerate solar adoption in Sri Lanka.
The Council for Business with Britain elected Ameena Ziauddin as President at its 26th AGM and named a 2026–27 committee including Aitken Spence Travels, Hayleys, John Keells and invited Commercial Bank's CEO to serve. The UK Developing Countries Trading Scheme and rising British tourist arrivals were highlighted as opportunities for exporters and tourism.
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.
UK High Commissioner urged Sri Lankan businesses to use the Developing Countries Trading Scheme (DCTS), which offers zero-tariff access to the UK and whose January 2026 reforms expand preferential access for the apparel sector, boosting export opportunities for Sri Lankan firms.
Exporters
Daily FT·Jul 1, 2026·Award or certification·PLCPositive
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.
Citizens Development Business Finance PLC (CDB.N0000) ran its sixth SMB Fair in Kandy on 19–20 June, showcasing local SMEs and offering a 25% cashback via CDB SELF QR payments. The two-day event drew over 1,000 visitors per day and aimed to boost small-business growth.
IMF mission chief Evan Papargeorgiou urged Sri Lanka to 'stay the course' and sustain reform momentum after staff-level talks, saying the IMF has relaxed some EFF targets as fuel prices rose about 50% and monetary tightening may slow growth. He noted authorities have delayed reforms at loss-making SOEs including SriLankan Airlines, Ceylon Petroleum Corporation and Ceylon Electricity Board.
Sri Lanka's inflation rose to 6.8% in June 2026, the highest since June 2023 and close to the Central Bank's 7% upper target. The rise was driven by a ~47% fuel price hike and higher food and transport costs; the Central Bank raised its policy rate by 100bp.
Interest RatesFuel & Energy PricesConsumer Staples (FMCG)
Colombo headline inflation rose to 6.8% Y-o-Y in June 2026 (from 5.5% in May), with a 2.1% month-on-month increase driven by food (fish, vegetables) and non-food items amid energy price pass-through. The Central Bank projects inflation to remain above the 5% target near term before easing, with elevated uncertainty due to Middle East tensions.
Interest RatesFuel & Energy PricesConsumer Staples (FMCG)
IMF staff completed a June 24–30 visit, noting inflation rose from 1.6% y/y in Feb to 5.5% y/y in May after energy price increases and that authorities responded with a 100 bps policy rate hike and temporary on-budget relief (fuel, electricity, fertilizer, cash transfers). The IMF said sustaining reforms is critical and the Seventh Review of the EFF will assess program progress in the fall.
Interest RatesRupee & ForexFuel & Energy PricesTourism
Foreign holdings of rupee government securities rose by Rs.14.51 billion in the week to 25 June — the largest weekly foreign inflow since 8 June 2023 — lifting total foreign holdings to Rs.135.86 billion. The Treasury Bond auction raised the full Rs.60 billion, flattening the yield curve; money-market liquidity improved and the rupee dipped.
Sanasa Development Bank (SDB.N0000) said CEO Kapila Ariyaratne will step down effective 6 Oct 2026 and Deputy CEO Manoj Akmeemana will become CEO from 7 Oct 2026, subject to Central Bank approval.
HNB Finance PLC attracted Rs.4.572 billion in subscriptions for its Rs.2.5 billion rights issue (including additional-share applications) prior to cheque realisation.
Nations Trust Bank PLC allotted the full 150 million Basel III-compliant Tier 2 debentures, raising the maximum Rs.15 billion after exercising an oversubscription option. The unsecured, subordinated five-, seven- and 10-year debentures include a non-viability conversion feature; 112.5m were allotted preferentially.
Sri Lanka's CCPI rose to 5.5% in May (from 5.4% in April), driven partly by higher local energy costs, eroding real returns on typical savings. Wealth managers recommend diversifying into unit trusts (money-market, income/balanced and equity funds) to protect savings.
Interest RatesFuel & Energy PricesConsumer Staples (FMCG)
UNP MP Ravi Karunanayake urged Parliament's Committee on Public Finance to summon Central Bank officials, Customs and the chief compliance officers of 13 banks to probe an alleged ~$1bn foreign-exchange fraud involving phantom imports and possible crypto-enabled capital flight.
Vallibel Finance (VFIN.N0000) reported FY2025/26 PBT of Rs.7.6bn, up 37.5%, with total assets rising to Rs.180.2bn (61.4% growth) and NPLs falling to 2.53%; the company also cited 70% portfolio growth and ongoing digital transformation initiatives.
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.
Interest RatesFuel & Energy PricesGold & PawningExporters
Daily FT·Jun 30, 2026·Capacity or capex·ABLPositive
Amana Bank acquired ownership of its corporate office at 353 Galle Road, Colombo 3 from Lee Hedges for Rs. 2.7 billion. The five‑storey, ~50,000 sq ft property on 95 perches had been leased since October 2025 and now provides Amana Bank full ownership.