News & market updates

The LMD-PEPPERCUBE Business Confidence Index fell 16 points to 132 in June, marking a 20-month low. The drop accompanies a 7.8% year-to-date rupee depreciation, fuel price hikes, central bank forex interventions (over US$223m sold in May) and elevated inflation risks.

Citizens Development Business Finance (CDB.N0000) received a USD 15 million investment from Swedfund to expand MSME lending; 30% of financing will target women-owned or -led businesses and the deal includes support for ESG and climate-related lending practices.

Colombo Stock Exchange ASPI fell 0.65% to 22,263.28, with utilities leading turnover at Rs.486 million. Top movers included Lighthouse Hotel (+4.64%), HNB (+0.19%), Sampath (+0.17%) and Pan Asia (+1.29%); Windforce (-5.12%) and Hayleys (-0.94%) were top decliners, and Asia Asset Finance declared a Rs.0.70 dividend on its convertible preference shares.

Commercial Bank of Ceylon signed an MoU with Carmart to offer structured leasing for Peugeot and Leapmotor vehicles until 30 June 2027, including attractive interest rates, documentation concessions and a complimentary first-year-fee credit card. Carmart will add perks such as a complimentary full tank and free vehicle registration.

Parenthood Global held the Mom Leaders Conference on 21 May 2026 at Cinnamon Life, recognising Top 10 Most Outstanding Mom-Inclusive Workplaces including Ceylon Tobacco Company, Hemas Holdings, DFCC Bank and National Development Bank; sponsors included Maharaja Foods and others.

People's Bank hosted the 'Entrepreneurial Glory and Trade Fair 2026' in Kurunegala, offering exhibitors, expert seminars, business advisory sessions and awareness of specialised SME loan schemes to support MSMEs. The bank said it will extend the initiative with regional trade fairs across Sri Lanka.

HNB PLC has partnered with Euro Motors Pvt Ltd to introduce a comprehensive vehicle leasing solution in Sri Lanka. The financing plan targets DONGFENG and JETOUR models and includes maintenance support to expand those brands' presence.

Colombo Stock Exchange ASPI fell 0.45% midday to 22,309.09 with turnover of 951.8 million rupees, utilities contributing 448.6 million. Convenience Foods Lanka authorized an 8.00 rupee first-and-final dividend and Tokyo Cement proposed a 2.50 rupee first-and-final dividend.

National Development Bank PLC (NDB) received an interim Deloitte forensic report identifying approximately Rs.13,579,664,684 of suspicious transactions in an ongoing fraud investigation; the findings are preliminary, the report is confidential, and NDB said it will make further disclosures as appropriate.

Government tabled its Fiscal Strategy Statement for 2027 and defended recent tax amendments, clarifying that digital VAT targets non-resident service providers and that the reduction of the compulsory VAT registration threshold from Rs.60m to Rs.36m has been postponed.

National Development Bank said Deloitte's interim forensic review identified suspicious transactions worth Rs.13,579,664,684 (Rs.13.58bn). The bank said the observations are preliminary, the report is confidential and it will make further disclosures as appropriate.

Colombo bourse finished the week higher, with the ASPI up 0.21% and the S&P SL20 up 0.51%; yesterday ASPI closed at 22,409.81 and the S&P SL20 at 6,247.42. Turnover topped Rs.1.9bn with foreign net inflow of Rs.9.3m; COCR, PKME and SIL led turnover while ACL fell and Hayleys, HNB Finance, Lanka Realty and CIC posted gains.

Rights issue · 2:9 at Rs 5.50 · XD Jun 2, 2026

Sri Lanka's rupee closed at 336.30/70 to the US dollar, firming from 337.25/35 the previous day, while government bond yields were broadly steady; select maturities ranged from about 10.35% (15.09.2027) to 11.75% (15.03.2035).

Sri Lanka sold Rs60bn of government bonds: Rs45bn of 15 Oct 2030 bonds at an average yield of 11.44% and Rs15bn of 15 Mar 2035 bonds at an average yield of 11.88%; both issues are available on tap.

Sri Lanka sold Rs1,521 million of treasury bills on tap at average yields of 10.14% (3-month) and 10.21% (6-month), taking the week's total T-bill sales to Rs71.521 billion; settlement is June 26.

Sarvodaya Development Finance PLC (SDF.N0000) reported FY2025/26 profit of LKR 820.1m, a 73.1% YoY increase, with total income of LKR 6.42bn (+46.8%) and total assets of LKR 37.37bn (+65.8%).

Sri Lanka's rupee was quoted at 336.90/337.00 to the US dollar on Friday, from 337.25/35 the previous day, while government bond yields were slightly higher — e.g. the 01.08.2030 bond at 11.25/30% (up from 11.20/25%).

Jeffrey Mohamed was arrested and remanded until 9 July over an alleged scheme to illegally remit nearly Rs.190 billion overseas by falsely claiming imports. Prosecutors say transfers in US dollars went via a Colombo Fort company using multiple bank accounts, with about 36 companies identified and probes into money‑laundering and possible drug-linked funds.

Rs.60bn Treasury Bond auction set for 26 June: Rs.45bn 15-Oct-2030 (11% coupon) and Rs.15bn 15-Mar-2035 (11.5%); secondary bond yields held broadly steady, net liquidity surplus was Rs.65.36bn and USD/LKR around 337.30.

Janashakthi Insurance PLC (Janashakthi Life) moved up from 7th to 5th in the LMD Readers’ Choice Most Loved Life Insurance Brands 2026, signalling stronger consumer preference and brand trust.

Colombo Stock Exchange closed flat (ASPI +0.01% to 22,409.81) on Friday with market turnover of Rs1.91bn. Top contributors included DFCC, Melstacorp and Central Finance while John Keells, Access Engineering, Haycarb and Aitken Spence lagged; Nations Trust Bank announced allotment of its Basel III Tier 2 debenture issue and its shares closed at Rs318 (-0.08%).