News & market updates

Sri Lanka's NCPI inflation rose to 5.4% in May 2026 from 4.7% in April. Food inflation increased to 1.5% and non-food inflation to 8.6%; the 12-month moving average rose to 2.4% and the NCPI was up 1.2% month-on-month.

Asian markets rose after Iranian and US negotiators reported progress in peace talks, helping Brent crude drop 1.9% to $79.01/bbl; at the same time a hawkish Federal Reserve outlook kept Treasury yields and the dollar firm, keeping rate risks prominent.

Secondary bond market rallied, driving yields sharply lower across the curve and prompting a drop in T‑bill auction rates — the 91-day yield fell to 10.02% and the 182-day to 10.16%. Foreign holdings of rupee government securities rose marginally to Rs. 121.35 billion and money-market liquidity narrowed to Rs. 31.25 billion.

Softlogic Capital PLC has appointed Imran Furkan to its Board as an Independent Non-Executive Director. Furkan is CEO of Tresync (Australia) and currently serves on the boards of Asiri Surgical Hospital PLC, Odel PLC and Maharaja Foods PLC.

US dollar eased ahead of the US PCE inflation print after the Fed left rates unchanged at 3.50%-3.75% and removed guidance on additional rate moves; the DXY trades near 100.70 after a 13‑month high, with markets also watching global PMIs, oil and gold.

Fraudsters are sending WhatsApp messages impersonating the Department for Registration of Persons to obtain NIC details and OTPs/passwords, then use them to access victims' bank accounts and steal funds. Sri Lanka CERT warns the public and says the DRP does not verify identities via WhatsApp.

Seylan Bank launched 'Seylan Athwela', a concessionary agriculture financing programme offering loans up to LKR 5 million at 5% interest and financing up to 75% of project costs with tenors of up to 3 years (working capital) and 5 years (investment). The scheme funds cultivation (excluding tea/rubber/coconut cultivation), processing/value-addition, machinery, sheds, warehouses, solar projects and working capital to support farmers and agribusinesses.

SDB bank (SDB.N0000) launched a fixed deposit campaign offering rates up to 11.25% p.a. for 120–390 day tenures. The time-bound drive aims to boost deposit mobilization amid rising market interest rates and is available via branches and digital channels.

Colombo Stock Exchange closed down: ASPI fell 0.48% to 22,253.52 and S&P SL20 fell 0.25% to 6,199.97, with market turnover of 1.18 billion rupees. Top gainers included Vallibel Power Erathna and Hatton National Bank, while John Keells, Aitken Spence, DFCC and Commercial Bank were among the main decliners.

PayMedia (Pvt) Ltd marked its 12th anniversary, highlighting a decade of delivering fintech solutions to banks and financial institutions—digital wallets, smart banking platforms, micro‑finance apps, digitized onboarding and AI-powered services. The company says it has earned security certifications and will continue driving financial inclusion and fintech innovation in Sri Lanka.

Colombo Stock Exchange ASPI fell 0.25% to 22,305.37 (down 55.94 pts) while the S&P SL20 dropped 0.30% to 6,196.50. Market turnover was Rs 423.9m, led by insurance at Rs 135.1m; NDB, Sampath and Lion Brewery were top gainers while Hayleys, Aitken Spence, Haycarb and LOLC led losses.

The Colombo Stock Exchange (CSE) and SEC will hold a free investor forum on 25 June on the CSE trading floor, noting the ASPI rose 360% to 22,310.80 over the past six years. The CSE will open the trading floor 9:00–17:00 with stockbroker and unit trust reps on site to facilitate account openings (first 200 entrants eligible for a raffle).

Mahindra Ideal Finance (MIFL) opened its 38th branch in Kohuwela, offering leasing, vehicle and business loans, draft and revolving loans, and fixed deposits. The branch targets vehicle dealers, importers, individuals and businesses in a commercial Colombo area; MIFL is Fitch-rated AA-(lka) Stable and debt-listed on the CSE.

Alliance Finance Company PLC waived the outstanding loan balance and returned the property deed to the children of a deceased customer (Gampaha branch) as an act of compassionate finance.

An IMF country team will visit Sri Lanka from June 24–30 to assess the country's economic recovery and formally review progress on its economic reform program. The delegation will meet government authorities and stakeholders to take stock of recent economic developments.

Emerging Women Summit in Kilinochchi drew over 200 participants, including 150+ women entrepreneurs, to strengthen access to finance, markets and business support. Organised by LIIN under the GRIT Project (funded by Global Affairs Canada), the event featured financing and market-access sessions, 40+ stalls and participation from institutions including DFCC Bank and Commercial Bank.

Hatton National Bank PLC signed an MoU with the Institution of Engineers Sri Lanka on 20 May 2026 to offer IESL’s 25,000+ members customised pre‑approved premium credit cards, pre‑approved personal loans and access to HNB Priority Circle. The package offers concessions and tailored banking for engineering professionals.

DFCC Bank relocated its Ratnapura branch to No. 269, Main Street, Ratnapura, offering a more accessible, spacious modern branch that continues to provide the full range of DFCC products and digital banking services.

Sri Lanka's Central Bank has opened a public consultation on its inflation target review ahead of an October decision, inviting comments through 15 July 2026. The current MPFA target is 5% (±2%) set in October 2023 and the review is required at least every three years under the new Central Bank Act.

Sri Lanka has issued a Gazette to systematically monitor imports, requiring detailed importer information and mandating banks to assign a separate identification number for each transaction to curb illicit foreign-exchange outflows. The move follows disclosures of scams using fake company registrations and aims to protect reserves without fully restricting trade.

Former Finance Minister Ravi Karunanayake has asked President Dissanayake to cut the Central Bank’s inflation target to 2% ahead of the October 2026 statutory review. He cited recent inflation breaches (5.4% in April, 5.5% in May), currency weakness and fuel-driven price pressures as reasons.

Binance Research reports the tokenized real-world-asset market crossed US$10B in market cap in 2026 (a 10x rise since early 2024), with weekly volume averaging US$735M; ~80% of Binance tokenized stock traders are in emerging markets and 93% of trades are fractional (median US$18.81).

Sri Lanka sold Rs5,170 million of Treasury bills on tap at an average yield of 10.16%, bringing total bills sold this week to Rs75,170 million; settlement is June 19.

Regulations No. 06 of 2026, effective 19 June 2026, prohibit commercial banks from making advance payments for imports unless the importer is registered as an 'eligible importer for effecting Advance Payment'; banks must assign unique transaction numbers and notify Sri Lanka Customs with TIN, beneficiary and transaction details.

Sri Lanka's rupee was quoted at 333.50/334.00 to the US dollar on Friday (from 333.90/334.20), while government bond yields fell further — e.g., a 01.03.2030 bond quoted at 10.95/11.00% down from 11.05/15%.

CoPF chair Harsha de Silva questioned CPC's FX management after a reported $46m single-day dollar purchase on 29 May, warning large one-off buys can destabilise the FX market. CPC says it will smooth purchases, planning $11m daily and preparing multi-day buying plans after fuel import bills jumped from ~$100m to >$500m monthly.

Abans Finance PLC reported profit after tax of Rs. 857 million for the year ended 31 Mar 2026, a 101% increase from the prior year. Total assets rose 54% to Rs. 20.81 billion, loans reached Rs. 14.65 billion and customer deposits were Rs. 11.04 billion.

Hatton National Bank (HNB.N0000) appointed Champika Dodanwela as an Independent Non-Executive Director. She brings over 35 years of banking experience, including senior roles and a CFO tenure at Seylan Bank and earlier work at Sampath Bank.

Secondary bond market retained positive momentum as yields eased on selected tenors (e.g. 15.12.26 at 10.05–10.15%, 01.05.27 at 10.40%). Money market showed a Rs.31.20bn net liquidity surplus with Rs.59.22bn at SDFR; USD/LKR closed at Rs.333.75/334.10 on $97.15m traded.