News & market updates

Cabinet approved revised regulations allowing foreign money or value transfer service providers to register and be supervised by the Central Bank under the Payment and Settlement Systems Act, strengthening AML/CFT oversight and formalising remittance and digital payments operations.

The rupee weakened versus the US dollar, with indicative TT rates at Rs.320.40/Rs.330.81 and interbank spot closing at Rs.328.50/Rs.332.00. The Central Bank capped trades at Rs.330, used moral suasion to calm markets and said it may force exporters to convert dollar earnings sooner.

Sri Lanka sold 4,300 million rupees of 3-, 6- and 12-month Treasury bills on tap at average yields of 9.36%, 9.68% and 9.83%, bringing total bills sold this week to 99,859 million rupees; settlement is May 29.

IMF Executive Board completed the combined Fifth and Sixth reviews of Sri Lanka’s EFF, unlocking SDR508 million (≈US$695m) in immediate financing. Program performance was generally strong, but some continuous criteria were missed and risks from the Middle East war and Cyclone Ditwah weaken the outlook.

IMF approved a US$695m disbursement to Sri Lanka under its EFF despite breaches including intensified import controls and a cyberattack that led to a missed US$2.5m external payment; authorities requested a waiver and pledged corrective actions.

Lanka Microfinance Network (LMFN) formally inaugurated its governance structure on 15 May 2026, electing a nine-member Board including five office bearers to represent microfinance institutions nationwide. LMFN said it will prioritize working with the newly created Microfinance and Credit Regulatory Authority established under the Microfinance and Credit Regulatory Authority Act No. 9 of 2026.

Colombo stocks recovered after the CBSL hiked policy rates by 100bps, with the ASPI up 0.11% at 22,199.23 and turnover around Rs.1.86bn. DIAL, CCS, BREW, CARS and NDB were top positive contributors; VLL saw net foreign buying while AAIC saw net foreign selling and Food & Beverage led turnover.

Commercial Bank of Ceylon (COMB.N0000) has upgraded its Self-Onboarding Platform to let new customers, including Sri Lankans abroad, open savings accounts instantly via web or mobile with real-time video identity verification and automated compliance screening.

Commercial Bank of Ceylon has enabled PayPal-linked withdrawals via ComBank Digital, allowing eligible customers to transfer PayPal balances directly into their Commercial Bank accounts instantly. Linking uses email-and-DOB authentication and the digital process takes about two minutes without a branch visit.

Commercial Bank of Ceylon now lets Sri Lankan freelancers, digital entrepreneurs and exporters transfer PayPal balances directly into Commercial Bank accounts via ComBank Digital. Eligible customers link PayPal by matching registered email and date of birth for near-instant authenticated transfers, which the bank says will facilitate foreign currency inflows.

Dr. Nirmal De Silva launched his book 'The 15 Organizational Realities' at BMICH, Colombo, presenting fifteen recurring organizational patterns and practical leadership shifts based on over 7,800 engagements across more than 250 organisations. The launch included a panel of senior private- and public-sector leaders.

Senior public debt managers and international institutions met in Colombo at the 2026 Asian Regional Public Debt Management Forum to advance regional cooperation on climate resilience and debt sustainability, focusing on local-currency debt markets, green financing and AI/technology in debt operations.

Dividend · Rs 5.95 · XD Jul 1, 2026

Final dividend of LKR 5.95/share; XD 2026-07-01; record 2026-07-01; payable 2026-07-20; FY 31st March 2026

Sri Lanka's rupee closed at 328.50/332.00 to the US dollar on Wednesday, weaker than Tuesday's 324.00/325.50, while government bond yields rose (01.08.2030: 12.00/15%, 15.01.2033: 12.45/55%, 15.03.2035: 13.00/15%).

Sri Lanka sold all offered Rs240 billion of 2030, 2033 and 2035 government bonds at average yields of 11.86%, 12.32% and 12.93% respectively; all three issues are available on tap.

Dividend · Rs 3.75 · XD Jul 1, 2026

Final dividend of LKR 3.75/share; XD 2026-07-01; record 2026-07-01; payable 2026-07-07; FY 31st March 2026

Sri Lanka's Treasury bill yields jumped after the CBSL raised the overnight policy rate: 91-day 9.36% (from 8.18%), 182-day 9.68% (from 8.25%), 364-day 9.83% (from 8.49%); the PDMO accepted Rs.95,559 million of Rs.140,000 million offered, settlement May 29, 2026.

Sri Lanka's unit trust industry held AUM at Rs. 589 Bn in April 2026 (flat vs March, -2.3% YoY); equity-related funds saw flows rise 91.7% YoY to Rs. 61 Bn while fixed-income funds fell ~10% YoY, and investor numbers reached 154,250 (up 26.6% YoY).

HNB Finance PLC reported FY 2025/26 PAT of Rs. 1.68 billion, up 120% year-on-year, and PBT of Rs. 3.9 billion. Total assets rose 61% to Rs. 94.4 billion, lending grew 70% to Rs. 76.3 billion, leasing rose 98% and gold loans increased 80%.

John Keells Holdings (JKH) posted Group EBITDA of Rs.80.01 billion for FY2025/26, up 75%. Recurring profit attributable rose 155% to Rs.13.24 billion; group units Nations Trust Bank (NTB) and Union Assurance (UAL) also reported improved results, with NTB completing the HSBC Sri Lanka retail acquisition.

The Sri Lanka Banks' Association says the banking sector remains stable and customer deposits are safe despite recent electronic fund-transfer and cyber-fraud incidents, with losses absorbed by banks' capital buffers and regulators prepared to provide temporary liquidity support.

Sri Lanka's rupee was quoted at Rs328.00/330.00 to the US dollar on Wednesday, weaker than Rs324.00/325.50 the previous day. The secondary bond market was quiet amid an ongoing auction of 240,000 million rupees in treasury bonds, with a hamstrung interbank market and importers buying forwards up to Rs380–400.

Asian shares rose and Brent crude traded near $100/bbl as markets awaited developments in US‑Iran talks and central bank commentary on inflation and interest rates. Investors also tracked currency moves, a likely RBNZ rate hold and gains in gold.

Central Bank Governor Nandalal Weerasinghe said importers had bought dollars forward at up to Rs380-400 amid a hamstrung interbank market, and the central bank raised rates by 100 basis points to slow credit and stabilise FX markets.

Central Bank Governor Nandalal Weerasinghe said the IMF-supported EFF program allows flexibility for policy adjustments, including targeted subsidies and revisions to key performance targets. He said the IMF Executive Board will approve the combined fifth and sixth reviews on Wednesday and that NIR targets and fuel pricing remain under periodic review.

John Keells Holdings reported FY2025/26 Group EBITDA of Rs.80.01bn (up 75%), recurring PBT of Rs.35.72bn (up 143%) and recurring profit attributable of Rs.13.24bn, and declared a final interim dividend of 10 cents to bring FY26 total to 30 cents (Rs.4.42bn). The group cited broad-based contributions from Retail, Transportation and Leisure, and noted improved performance at NTB and double-digit premium growth at Union Assurance.

The Sri Lanka rupee strengthened about 7% against the US dollar since last Thursday, with indicative TT rates easing to Rs. 318.32/328.69 and interbank spot at Rs. 322.00/325.00; the Central Bank capped trades at Rs. 330 for some banks and urged exporters to convert dollar earnings sooner.

Central Bank of Sri Lanka says FX market distortions were temporary and interbank liquidity has been restored after targeted steps; interbank rates rose from about Rs.320 to Rs.330 at the peak while some customer trades reached Rs.346–Rs.354. The CBSL said it used limited intervention, continues overnight liquidity absorption and can deploy further tools if volatility returns.