News & market updates

Secondary bond market opened subdued ahead of a Rs. 140 billion Treasury Bill auction today and a Rs. 250 billion Treasury Bond auction on Thursday. Yields edged higher on selected maturities and several block trades supported transaction volumes.

Parliament's Committee on Public Finance warned the PDMO lacks sufficient expertise to manage Sri Lanka's Rs.31.1 trillion government debt and urged significant strengthening of its technical, governance and operational capacity. MPs requested a Training Needs Assessment within two weeks; the PDMO has an approved cadre of 80 posts with about 60 filled and has had IMF technical assistance.

S&P Global affirmed Sri Lanka's long- and short-term sovereign ratings at 'CCC+/C' with a stable outlook and revised the transfer and convertibility assessment to 'B-'. The agency warned higher energy costs and Middle East risks could pressure growth and external balances, and forecasts 3.8% GDP growth in 2026.

FinTech Forum Sri Lanka board director Dhanika Perera urged building a stronger fintech ecosystem to drive the digital economy, calling for industry-wide collaboration on regulation, interoperability, financial inclusion and accelerated digital payment adoption.

DFCC Bank has introduced Sri Lanka's first ATMs and cash recycler machines offering transactions in eight languages, now available at Bandaranaike International Airport and DFCC locations in Hiriketiya, Ella and Arugam Bay, with wider rollout across its network planned.

Colombo Stock Exchange closed higher, the ASPI rose 0.20% (41.92 pts) to 21,229.14 and turnover was Rs 2.02bn with retail leading at Rs 1.04bn. SANASA Life said escrow proceeds were released and invested in government securities, and Odel restarted construction on Zone 1 of its mall with completion expected in 1.5-2 years.

CSE Clear, the Colombo Stock Exchange's fully owned CCP, marks its first anniversary after clearing and settling LKR 1,188 billion across more than 8 million trades while implementing a margining framework, a Contributory Guarantee Fund and enhanced risk monitoring to strengthen post-trade resilience.

Janashakthi Insurance PLC (Janashakthi Life) was named among Sri Lanka's 50 Best Workplaces™ for 2026 by Great Place To Work® Sri Lanka in the Medium category (251-500 employees). The recognition follows its Great Place To Work® Certified status and an 88% Employee Trust Index™ score in 2025.

Dubai's Department of Economy and Tourism signed a strategic agreement with Swiss wealth manager Julius Baer to mobilise its global network and attract international investors, business owners and family offices to establish and expand in Dubai. Julius Baer, with CHF 547bn AUM and more than 60 locations, will support Dubai's push to grow its private-wealth ecosystem under the D33 agenda.

The CSE opened higher with the ASPI up 0.07% at 21,187.22 and the S&P SL20 up 0.10% at 5,948.74; market turnover exceeded Rs.2bn and foreigners were net buyers (Rs.15.7m). John Keells, Hayleys and HNB were key contributors while capital goods and banking led turnover.

DFCC Bank has launched Sri Lanka's first ATMs and cash recycler machines offering transactions in eight languages, now live at Bandaranaike International Airport and DFCC outlets in Hiriketiya, Ella and Arugam Bay, with a wider countrywide rollout planned.

Colombo Stock Exchange midday: ASPI rose 0.56% to 21,306.64, led by gains in Colombo Dockyard, Dialog Axiata, Melstacorp, PGP Glass, Commercial Bank and Kelani Cables while Vidullanka fell. R I L Property disclosed public shareholding is 46.1071% after prior miscalculations.

Sanasa Development Bank (SDB) opened a new Business Centre at 167, Union Place, Colombo 02 to expand its corporate and business banking presence. The centre will target corporate, institutional and mass-affluent clients with tailored lending, deposit, money-market and digital banking solutions.

Sri Lanka's rupee closed flat at 336.20/35 to the US dollar and government bond yields were broadly steady, with most listed maturities little changed (e.g. 15.09.2027 at 10.30/40%, 15.12.2029 at 11.25/30%).

Secondary government bond yields edged higher on selected longer maturities while Treasury bill yields fell; the 91-day yield declined 18 bps to 9.95%. Foreign holdings of rupee government securities rose by Rs.5.83bn to Rs.182.39bn and system liquidity remained in surplus at Rs.163.07bn.

HNB Finance PLC appointed Supun Dias and Sivarajah Nandakumar as Non-Independent Non-Executive Directors. Both appointees are long-serving Executive Vice Presidents at Hatton National Bank with over 34 years of service.

Sri Lanka's rupee was quoted at 336.25/45 to the US dollar on Monday, little changed from Friday; bond yields were broadly steady, with 2028–2030 maturities trading around 10.75%–11.65%.

CSE indices rose modestly and turnover reached Rs.2.07 billion, led by John Keells Holdings with Rs.661 million traded; ASPI closed up 14.48 pts at 21,187.22 and S&P SL20 gained 6.18 pts to 5,948.74.

Colombo Stock Exchange closed flat, ASPI up 0.07% to 21,187.22 with turnover of 2.07 billion rupees; capital goods led turnover at 866 million rupees.

Seylan Bank's employees won national Mercantile competitions: the Seylan Rugby Team were unbeaten champions of the 2025 Bowl Championship (33–0), while the athletics contingent set meet records and secured 8 gold, 2 silver and 9 bronze medals.

Sri Lanka ranked the 4th largest global improver in the 2026 IIF Investor Relations and Debt Transparency Report, with its Investor Relations Country Score rising to 43.67 (from 37.33) and debt-transparency ranking improving from 19th to 5th. The PDMO's investor-relations program and stronger debt management aim to broaden the investor base and reduce the borrowing uncertainty premium.

Sampath Bank (via its Employees' Union and Sustainability Unit) supported essential upgrades at Lady Ridgeway Hospital, refurbishing a blood-filtration machine, installing air-conditioning in the physiotherapy unit, adding directional signboards and child-friendly decorations.

CPA Australia President Prof. Dale Pinto said management accountants who embrace AI, data analytics and ethical judgement will outperform, urging the profession to shift from reporting to strategic advising amid geopolitical uncertainty and sustainability priorities.

Janashakthi Finance PLC launched 'Project Compass', a service transformation programme to enhance customer experience, strengthen processes and build a culture of service excellence. The initiative will be rolled out with partner Blue Mango Partners over the coming months.

Sarvodaya Development Finance PLC held Achievers' Night 2026 on 11 July, awarding 75 employees cash prizes and selecting 29 top performers for overseas tours. Awards spanned 10 categories (including Best Gold Loan Officer and Best Deposit Mobiliser) and five upcoming branches were recognised.

Colombo Stock Exchange ASPI rose 0.57% (up 120.83 pts) to 21,293.57 at midday, with market turnover LKR 264 million and capital goods leading turnover at LKR 80.9 million. Ceylon Cold Stores reported June-quarter profit of LKR 1.063 billion, down 3% year-on-year.

India amended its DTAA with Sri Lanka to add a Principal Purpose Test (Protocol signed 16 Dec 2024, entered into force 19 Jun 2026; India applies amendments for fiscal years from 1 Apr 2027), and Deloitte urges Sri Lanka to modernise its treaty network. Sri Lanka has not joined the MLI, so updates would require bilateral negotiations.

India and Sri Lanka's DTAA was amended to add a strengthened preamble and a Principal Purpose Test (PPT); the Protocol entered into force on 19 Jun 2026 and India will apply the changes for fiscal years starting on or after 1 Apr 2027. Deloitte says Sri Lanka should modernise its treaty network (it has not joined the MLI) and urges businesses to review cross‑border structures for genuine commercial substance.

Ceylinco Life (Ceylinco Holdings PLC) hosted 10 winning families — 40 participants — on an all-expenses-paid Malaysia tour under the 19th 'Family Savari' promotion. The itinerary included Kuala Lumpur highlights (Petronas Twin Towers, Aquaria KLCC) and Genting Highlands as part of its customer engagement rewards.

The ASPI fell 1.09% (232.67 pts) over the week and the S&P SL20 declined 0.95% (57.12 pts). Declines were led by JKH, HNB, CINS, GRAN and BREW while a large negotiated crossing in UML supported market activity; weekly turnover was Rs.2.45bn and foreigners were net buyers of Rs.1.07bn.