News & market updates

Sri Lanka sold Rs100 million of 3-month Treasury bills on tap at an average yield of 8.18%, bringing total T-bill sales this week to Rs67,337 million; settlement is due May 22.

The IMF Executive Board will consider Sri Lanka's combined Fifth and Sixth reviews under the Extended Fund Facility on Wednesday (May 27). The IMF says authorities have made significant progress restoring macro stability and reserves, while noting renewed external pressures.

Sri Lanka's rupee spot offer was 343.00 to the US dollar on Friday, while government bond yields eased — e.g. the 01.07.2028 bond at 10.35/40% and the 15.12.2029 bond at 10.35/50%.

Colombo Stock Exchange traded higher midday as the ASPI rose 0.24% (52.94 pts) to 21,886 with turnover Rs.807m, led by gains in John Keells and DFCC. Lanka Ceramic declared a final dividend of Rs.6.40 and Swisstek recommended a final dividend of Rs.0.40 per share.

Brent crude rose 2% to $104.71 a barrel as hopes of progress in US‑Iran talks and supply worries pushed oil higher, while the US dollar hovered near six‑week highs and markets priced in possible Fed rate hikes; MSCI Asia ex‑Japan rose 0.3% and WTI was $98.01.

Sri Lanka has introduced mandatory Beneficial Ownership (BO) disclosure to strengthen corporate transparency. Deloitte says the reform's benefit depends on effective implementation and tech-enabled data integration, and warns heavy verification duties on directors and company secretaries may pose practical challenges.

Government expects to receive a $700m IMF EFF tranche on 27 May. It reiterated commitment to fiscal reforms, aims to meet its 2032 debt-to-GDP target by end-2026, and said multilateral inflows, exports and remittances will strengthen the foreign exchange position.

The Central Bank met bankers and currency dealers as the rupee weakened—TT LKR/USD at Rs.342.63/354.03 and interbank trading around Rs.331–348—and authorities are considering tighter FX rules and a possible 50–100bp policy rate hike to curb volatility.

CT Smith says Sri Lanka's current pressures are driven mainly by an external energy shock, with near-term multilateral inflows of about $1.38–1.4bn (IMF $700m, ADB $480m, World Bank $200m) expected to help stabilize the rupee. The firm notes the rupee has weakened ~6.2% YTD to Rs329.64, inflation rose to 5.4% in April, and the CBSL policy decision is due 26 May (base case: rates held at 7.75%).

Opposition Leader Sajith Premadasa urged the Government to begin negotiating a successor IMF program, saying Sri Lanka has $7bn in reserves against the IMF's $14.2bn target by March 2027 and would need about $600m/month to bridge the gap. He noted ongoing talks with the IMF to adjust the current EFF amid Middle East war-driven oil-price shocks and rupee weakness.

US dollar selling rates at commercial banks eased below Rs.340 today (22) after peaking at Rs.354 on 21st. Quoted afternoon selling rates included Commercial Bank Rs.342.50, HNB Rs.340.00, Sampath Rs.340.50 and Nations Trust Rs.336.49.

Colombo Stock Exchange closed up with the ASPI rising 0.44% to 21,929.64 on turnover of Rs.2.17 billion, led by capital goods turnover of Rs.545.5 million. Lanka Hospitals announced a tax-free final dividend of Rs.1.00 per share (total Rs.223.73 million) payable without shareholder approval.

Commercial Bank of Ceylon has signed an agreement to open a fully‑fledged branch in Port City Colombo to offer full banking services—including digital banking, trade services, foreign currency transactions, corporate and retail products—to clients in the Special Economic Zone.

Union Bank and the Sri Lanka Export Credit Insurance Corporation (SLECIC) formalised an APARA guarantee allowing Union Bank to offer pre-departure loans to migrant workers backed by credit insurance. The guarantee reduces lending risk for banks and expands financial access for prospective overseas workers.

Fentons IT (FIT), with IceWarp, hosted an exclusive CIO networking evening 'The IceBreaker Moment' on 24 April at SHARK by Port City, attended by CIOs and IT decision-makers from over 40 organisations, mainly across the BFSI sector. The event aimed to foster open engagement and showcased IceWarp solutions through interactive activities and customer recognitions.

IMF mission chief Evan Papageorgiou urged Sri Lanka to continue allowing the economy to adjust as the rupee has depreciated sharply ahead of IMF Board approval of the fifth and sixth EFF reviews next week (May 27). He noted authorities have made progress restoring macro stability, rebuilding reserves and strengthening confidence.

Opposition Leader Sajith Premadasa urged the government to begin negotiating a successor IMF programme, warning Sri Lanka is likely to miss the March 2027 reserves target (current reserves US$7bn vs target US$14.2bn) as the rupee has weakened ~14% in 12 months. Analysts say higher import-driven inflation and recent depreciation put pressure on the Central Bank to raise interest rates.

Sri Lanka's rupee traded at 342.00/350.00 to the US dollar on Thursday (telegraphic transfer 345.00/354.00) while government bond yields rose; the 15.12.2029 bond closed at 10.50/65% (up from 10.30/45%) and other mid- to long-dated yields moved higher.

Sri Lanka's national YoY inflation (NCPI) rose to 4.7% in April 2026 from 2.4% in March; food inflation increased to 1.1% (from 0.7%) and non-food inflation to 7.8% (from 3.8%).

Sri Lanka has introduced mandatory Beneficial Ownership (BO) disclosure; Deloitte says successful outcomes depend on implementation—accurate verification, integration with digital ID, tax and banking systems, and capacity-building—drawing on international best practices.

Sri Lankan rupee weakened further, with commercial bank TT rates at Rs. 332.09/342.70 and spot trading around Rs. 329.25–330.25, extending depreciation amid strong dollar demand, higher fuel import costs and Middle East tensions.

Sri Lanka's rupee traded at 343.50/352.50 (TT buying/selling) on May 21, 2026, while government bond yields rose; e.g., the 15.12.2029 was quoted 10.30/40% (from 10.30/45%), 01.08.2030 10.45/55% (from 10.35/50%) and 15.06.2034 11.55/65% (from 11.40/50%).

Sri Lanka's rupee has fallen 4.6% this month and slid to 334.52 per dollar, which officials attribute to speculation, a six-fold surge in the fuel import bill, and outflows from government securities and the stock market.

Janashakthi Limited (JXG.N0000) has inducted the second cohort into its 'Spartans' JXG Management Trainee Programme, an 18-month cross-functional leadership development initiative. The programme rotates trainees across the Group's Insurance, NBFI and Investments businesses and key corporate functions.

Colombo Stock Exchange rose as the ASPI gained 0.21% to 21,833, with banks leading turnover at Rs.599.8 million and the rupee weakening to Rs.352.50. Amana Bank announced a registered address change effective May 19, 2026; its shares closed up 1.85% at Rs.27.50.

HNB PLC has partnered with Singer (Sri Lanka) PLC to expand access to John Deere tractors via HNB leasing, offering special equal structured rentals. Customers also get a waived first-year credit card fee, discounted vehicle insurance and eligibility under the Govi Saviya product.

Colombo Stock Exchange rose with ASPI up 0.75% (164.01 pts) to 21,953.06 and S&P SL20 up 0.71% to 6,076.69; market turnover was LKR 1.014 billion, led by banks (LKR 296.2m). Central Industries declared a final dividend of LKR 6.00/share and its shares were up 3.21% at LKR 224.75.

DFCC Bank’s Vice President Shera Hassen was honoured by the Sri Lanka Tamil Women's Union for advancing women's financial inclusion through the bank's DFCC Aloka proposition. DFCC Aloka offers tailored financial solutions, advisory support and engagement to boost women's economic participation.

Hatton National Bank PLC (HNB) has partnered with Diesel & Motor Engineering PLC (DIMO) to provide tailored leasing solutions and special leasing rates for heavy machinery. HNB General Insurance will offer discounted machinery insurance and customers get a waived first-year credit-card annual fee.

Sri Lanka's rupee sold at Rs.345.50 to the US dollar (TT selling) on May 20, with intraday spot trades at 329.25–330.25; bond yields rose, with 2029–2034 maturities moving up to around 10.30–11.50%.