News & market updates

The Central Bank of Sri Lanka briefed Parliament on current monetary policy, exchange-rate behaviour and the country's economic situation. Governor Nandalal Weerasinghe and senior CBSL officials answered MPs' questions and provided clarifications.

Asia Asset Finance will raise Rs1.5039bn via a 4-for-11 rights issue of 45,162,012 shares at Rs33.30 to strengthen Tier 1 capital to meet CBSL regulatory requirements and support business expansion; shares traded up 4.09% at Rs56 intraday.

Sri Lanka's rupee was quoted at 333.00/335.00 to the US dollar on Thursday, slightly weaker than 332.25/332.75 the previous day, while the secondary bond market was quiet ahead of a 150,000 million rupee Treasury bond auction; onshore yields were around 11.85–12.30%.

The CBSL cut the mandatory conversion period for export proceeds from 90 days to 30 days, and the rupee strengthened to about Rs. 332.25/333.00 from Rs. 337.00/337.75. The move is intended to accelerate repatriation of export earnings and boost foreign-exchange liquidity to stabilise the market.

T-Bill yields rose for the fourth consecutive week—91-day 10.09%, 182-day 10.27% and 364-day 10.16%, the highest since late Sept 2024. The rupee appreciated after CBSL cut exporters' FX conversion time to 30 days; the auction accepted Rs.71.744b of Rs.140b (51.25%) ahead of a Rs.150b bond auction.

Authorities uncovered about $85m of suspected foreign-exchange fraud routed overseas via thousands of TT transactions through shell companies, involving roughly 105 local firms and transfers through 13 banks. Government plans tighter oversight, mandatory Customs registration/TINs and to reclassify FX breaches under AML laws; probes continue.

Commercial Bank of Ceylon (COMB.N0000) launched 'ComBank GIG+' — a specialised account for freelancers and digital earners to receive foreign currency payments (USD, EUR, GBP, AUD). It supports PayPal-linked withdrawals, offers first-year fee waivers and preferential FX rates, and aims to formalise foreign income for access to savings, credit and investment services.

Colombo Stock Exchange closed down as the ASPI fell 0.89% (191.45 points) to 21,270.02. Bank stocks led declines with DFCC, Commercial Bank and National Development Bank among top negatives, while Ambeon, Melstacorp and Asiri gained; Asia Asset Finance filed a rights issue to raise Rs1.5bn.

HNB PLC has partnered with Access Motors to launch an exclusive Jaguar and Land Rover leasing scheme effective 25 May 2026, offering special leasing rates, a first-year credit card fee waiver, discounted insurance and vehicle discounts up to Rs.500,000 plus complimentary first-five services.

Binance's new stock trading product amassed over US$400 million in assets under management in its first week. About 25% of users were under 25, more than 80% of volume came from emerging markets, nearly 40% of trades were under US$100, and 70% of users held positions.

ASPI fell 0.4% (85.70 pts) to 21,461.47 as selling pressure reversed early gains; turnover was below Rs.1.7bn and foreign investors were net buyers of Rs.55.9m. Major negative contributors were C T Holdings, Melstacorp, Ambeon, Access Engineering and Central Finance, while John Keells, Chevron Lubricants and Commercial Bank were top turnover names.

PMF Finance (PMB.N0000) launched SIDQ, its Islamic Finance Unit, on 8 June to offer Shariah-compliant, asset-backed financing and target underserved segments including the Eastern Province.

Rights issue · 4:11 at Rs 33.30 · XD Jul 31, 2026

The Public Debt Management Office raised Rs.71,744 million in the T‑bill auction, accepting 51.2% of bids against a Rs.140,000 million target; yields rose to 10.09% (91-day), 10.27% (182-day) and 10.16% (364-day).

Sri Lanka Treasury bill yields rose across maturities at Wednesday’s auction while demand was weak: 71.74 billion rupees sold of 140 billion offered. The 3-month yield rose 25bp to 10.09%, the 6-month up 26bp to 10.27% and the 12-month up 14bp to 10.16%.

Sri Lanka rupee closed at 332.25/75 to the US dollar on Wednesday, firmer than 337.00/75 the previous day; bond yields were broadly steady, with the 01.08.2030 bond around 12.25/40% and the 15.03.2035 at 13.00/20%.

Sri Lanka's central bank cancelled the registration of Co-operative Leasing Company Limited effective June 10, barring it from undertaking new finance leasing business after repeated failures to comply with reporting requirements and the Masterplan for consolidation of non-bank financial institutions.

Sri Lanka Customs collected 217.9 billion rupees in May, 16% above the 187.8 billion target. Customs collections for the first five months reached 1,143.7 billion rupees, 44% higher year‑on‑year, driven by stronger enforcement, improved valuation and a rebound in import volumes.

The Central Bank of Sri Lanka cancelled the Certificate of Registration of Co-operative Leasing Company Limited (CLCL) effective 10.06.2026 for repeated non-compliance with reporting requirements and the Masterplan for consolidation; CLCL may not undertake new finance leasing business except existing contracts entered before the cancellation date.

Opposition Leader Sajith Premadasa called on the Government to table in Parliament the Treasury's report on a $2.5 million cyber fraud involving external debt payments. He also warned that conflicting statements from the Government and the Central Bank are creating policy uncertainty and urged a clear fiscal and monetary framework and disclosure of IMF/World Bank/ADB commitments.

The Central Bank of Sri Lanka now requires exporters to convert any residual foreign-currency export proceeds into rupees by the 10th day of the month following receipt under amended Repatriation of Export Proceeds rules. The change replaces the 90-day window and is intended to support FX liquidity amid recent rupee pressure.

Asian stocks slid as Middle East tensions escalated and oil rose (Brent +0.9% to $92.29/bbl), amplifying inflation concerns and the prospect of further interest-rate moves. Investors are focused on upcoming U.S. CPI data and central bank responses.

Cabinet approved gazetting new Foreign Exchange regulations — Investments Abroad by Residents (No.1 of 2026) and Transfer of Funds Abroad by Emigrants (No.2 of 2026) — and a new Section 22 Order, replacing the 2021 rules governing overseas investments and emigrant remittances. The Central Bank recommended the changes, which aim to streamline the framework while retaining current restrictions.

Secondary bond-market rates edged up with selected Treasury maturities trading between 11.00% and 12.30%, and a Rs. 140 billion T‑Bill auction scheduled for June 10 (Rs.65b 91-day, Rs.55b 182-day, Rs.20b 364-day). Money-market call and repo rates remained above 9%, and USD/LKR closed near Rs.337/337.75.

Sri Lanka's central bank cut exporters' dollar conversion extension to 30 days and the rupee strengthened to about 332/334 (intraday low 328.00 from 336.50). Short-term government bond yields traded lower, with a 15.12.2029 bond at 11.95/12.15% and a 01.08.2030 quote at 12.20/30%.

Sri Lanka's central bank cut the mandatory conversion period for exporters' foreign-currency receipts from 90 days to 30 days, requiring conversion by the 10th of the following month. The rule is intended to generate predictable monthly dollar inflows to banks to ease FX shortages and help stabilise the rupee, while tightening exporters' working-capital flexibility.

Sri Lanka's Central Bank ordered exporters to convert export dollar proceeds within one month (down from three) effective immediately to curb rupee depreciation. The move follows a $211m defence of the currency in May and a 100bp overnight policy rate hike on May 26.

CT SMITH Holdings renewed its Silver Partnership with CFA Society Sri Lanka for the fourth consecutive year to support capital market development and promote ethics, governance and professional standards across Sri Lanka’s financial services industry.