News & market updates

Colombo Stock Exchange closed down as the ASPI fell 0.40% (85.54 points) to 21,461.63, with market turnover of 1.67 billion rupees. Bukit Darah, John Keells, Aitken Spence and Associated Motor Finance were positive contributors while C T Holdings and Melstacorp were among the largest decliners; capital goods led turnover at 469.3 million rupees.

Seylan Bank PLC opened its 292nd 'Pahasara' library at Nankadawara Kanishta Vidyalaya on 21 May 2026, donating two laptops, a multimedia projector and books. The initiative included student activities and financial literacy sessions and is part of the bank's goal to establish 300 libraries nationwide.

BIZENIUS (UAE) and RiskTAE Ltd. (UK) appointed Dr. Gishan Illangakoon as Senior Strategic Advisor to deliver Basel-aligned capital and liquidity management solutions for smaller and mid-sized banks. Dr. Illangakoon brings over 32 years' senior banking and risk management experience.

Colombo Stock Exchange trended up intraday, with the ASPI +0.26% (55.89 pts) to 21,603.06 and the S&P SL20 +0.16% (9.59 pts) to 6,010.27; market turnover was LKR 511.7m, led by capital goods (LKR 32.3m). Top positive contributors included Melstacorp, Hayleys, John Keells and Lanka IOC; Commercial Bank, Malwatte Valley Plantations and Ceylon Cold Stores were top negatives.

Asia Asset Finance PLC has partnered with Assetline Insurance Brokers to provide end-to-end insurance services to AAF customers, integrating insurance with its leasing products to improve access and service efficiency.

Sri Lanka operationalised the Central Bank's Green Finance Taxonomy with EU support and ran capacity-building sessions in May 2026 engaging over 200 stakeholders on reporting guidelines, screening tools and green product development. The CBSL Board has approved the rollout and will make materials publicly available.

Commercial Bank of Ceylon signed an MoU with the Sri Lanka Air Force to offer SLAF personnel concessionary personal loans, leasing, housing loans and credit cards. The package includes concessionary interest rates, reduced documentation charges and flexible repayment alignment to incomes.

Colombo market rebounded as the ASPI rose 0.67% to 21,547.17 with net foreign inflows of Rs. 22.6 million. Gains were led by selected blue-chip counters and heavy turnover in capital goods and food & beverage names, with notable moves in DIAL, BREW, CCS, ABAN and JKH.

Bank of Ceylon has reached all 331 Divisional Secretariat Divisions by opening a BOC Connect agent banking centre at the Welipitiya Post Office, completing nationwide DSD coverage. The expansion aims to boost financial inclusion and digital access through agent banking and the BOC Flex app.

Sri Lanka's rupee closed at 337.00/75 per US dollar, slightly weaker than 337.00/30 the previous day, while local bond yields rose (notably the 2030 and 2035 maturities). An auction of 140 million rupees in treasury bills is scheduled for Wednesday.

The IMF approved Sri Lanka’s combined Fifth and Sixth Reviews on 28 May 2026, releasing SDR 508 million (~US$695m) and bringing total EFF disbursements to SDR 1.778 billion (~US$2.4bn). The Fund said stabilisation has improved revenues, growth and reserves but warned debt sustainability remains “very high” and key structural reforms (electricity, public financial management) are unfinished.

Rupee weakened to 338.00/10 per USD from 337.00/30 while bond yields were broadly steady and a 140,000 million rupee T-bill auction is scheduled for Wednesday. A 01.08.2030 bond was quoted at 12.10/20% (down from 12.15/20%) and a 15.06.2034 bond at 13.00/15% (up from 12.75/13.00%).

Fitch cut its forecast for global growth in 2026 by 0.2 percentage points to 2.4% as an oil shock from the US‑Iran conflict and a prolonged Strait of Hormuz closure lifts energy prices (Brent now seen at $87/bbl for 2026). The agency said a tech investment boom cushions activity and central banks are likely to hold rates this year amid higher inflation risks.

Wealth Trust/Finance Ministry reported a steady secondary bond market and announced a Rs.150 billion Treasury Bond auction for 11 June (settlement 15 Jun 2026): Rs70b 15-May-2030 (coupon 11.00%), Rs60b 15-Dec-2032 (11.50%), Rs20b 1-Jul-2037 (10.75%). Secondary yields were broadly steady (e.g. 15.09.27 at 11.00%) and USD/LKR spot closed at Rs.337.00/337.35.

ASPI fell 1.57% (340.85 pts) to 21,403.28 as the CSE opened in the red amid rising interest rates and Middle East tensions. Turnover was over Rs.2.6bn with foreign net outflows of Rs.54.1m; Melstacorp, Bukit Darah, Sampath and LOLC were key negatives while John Keells and ACL led turnover and HNB rose.

Active credit cards rose by 12,999 in April to 2,228,852, slowing from a 22,473 increase in March; year-to-date growth was 63,070 (2.9%) and 2025 saw a 7.8% rise. Expansion has been supported by economic recovery, lower interest rates and promotional campaigns by card issuers.

Sri Lanka Customs says vehicle imports remained resilient despite a 50% surcharge introduced in May, with vehicle duties contributing about 30% of Customs revenue (e.g. Rs.76bn of Rs.212bn as of 28 May). The CBSL was a net seller of $211.3m in May as the rupee weakened, underlining FX pressure and potential interest-rate implications.

L B Finance PLC reported pre-tax profit of Rs.25.01 billion for the year ended 31 Mar 2026 (up 22%) and remitted Rs.13.72 billion in taxes. Loans expanded 58% to Rs.312.66 billion, group assets rose to Rs.415.57 billion, and the acquisition of AMF added ~Rs.17.2 billion in loans.

Colombo Stock Exchange's ASPI rose 0.67% to 21,547, led by gains in Dialog Axiata (up 6.80% to LKR44.00) and Sampath Bank (up 0.72% to LKR139.75). Market turnover was LKR2.16 billion, with capital goods leading turnover at LKR791.2 million.

Colombo Stock Exchange ASPI rose 0.83% to 21,581.80 midday, led by gains in Dialog, Hayleys, Colombo Fort Land & Building and Browns Investments; Commercial Bank slipped and Hela Apparel faces a trading suspension effective June 18 unless compliance is rectified by June 16.

Janashakthi Life (flagship of JXG) now accepts new life insurance applicants up to age 80 and provides life cover and maturity benefits up to age 90, extending beyond the prevailing market norm of 65–70 years to address an ageing population.

People’s Bank became the first state-owned bank in Sri Lanka to be awarded ISO 22301:2019 certification for its Business Continuity Management System. The certification was awarded by Bureau Veritas after assessment, with implementation support from MillenniumIT ESP and consultancy from Ernst & Young.

Intesa Sanpaolo and Banco BPM have launched a bidding war for Monte dei Paschi di Siena, with Intesa announcing an unsolicited €30.6bn offer (a 12.5% premium to MPS’s Friday close). Banco BPM has proposed talks on a "merger of equals"; shares in Intesa and BPM fell while MPS rose slightly.

Sampath Bank PLC opened a Colombo Port City branch, marking the first banking transaction within the development and positioning the bank to provide local and foreign currency banking, trade finance, treasury, remittances and digital banking for residents and non-residents.

Sri Lanka's rupee closed at 337.00/30 to the US dollar on Monday, from 335.50/336.25 the previous day. Bond yields were mostly steady: the 01.08.2030 bond rose to 12.15/20%, the 15.01.2033 was unchanged at 12.30/65%, and the 15.03.2035 edged up to 12.80/13.10%.

New active credit cards in Sri Lanka rose by 12,999 in April, down from 22,473 in March, taking total active cards to 2,228,852 by end-April. Analysts say growth was driven by economic recovery and falling rates but may slow after the Central Bank's 100bp May rate hike and amid fuel rationing.

IMF cut Sri Lanka's 2026 growth forecast to 3% and approved temporary fiscal easing under the EFF, enabling an immediate SDR 508m (~$695m) disbursement. It also lowered end‑2026 reserve projections to $8.645bn and trimmed 2026 tourism earnings to $2.5bn.

Private sector borrowing rose by Rs. 100.6 billion month‑on‑month to Rs. 10.8 trillion in April (0.9% M-o-M, 27% YoY), according to CBSL data. Domestic banking units accounted for most of the increase (up Rs. 97 billion to Rs. 10.24 trillion) while OBU credit rose marginally to Rs. 559.6 billion.

Sri Lanka's workers' remittances rose 36.2% YoY to $847m in May, and pushed January–May inflows above $3.9bn, bolstering foreign exchange reserves and macro stability. May marked the fifth consecutive month of strong growth and was second only to the Dec 2025 record.

Colombo Stock Exchange slid, ASPI down 1.68% (366.31 points) to 21,377.82 at midday. Vallibel One released its annual report showing profit of 13,164,778 rupees (prev. 11,760,829) and its shares were trading down 0.41% at Rs.96.00.