News & market updates

National Development Bank PLC reported operating profit before taxes on financial services of Rs. 9.5 billion and post-tax profit of Rs. 4.83 billion for 1H 2026 after recognising Rs. 2.55 billion of fraud-related losses (part of a revised total Rs. 13.58 billion). Excluding the fraud, 1H post-tax profit would have been Rs. 6.21 billion; CET1 9.7%, CAR 15.3% and LCRs >163%.

CBSL Governor said private sector credit expanded 27.8% year-on-year in the first five months of 2026, with outstanding private credit at Rs.11.04 trillion in May. He said the 100-basis-point policy rate hike in May and other measures are expected to gradually moderate credit growth and demand pressures.

CBSL said loan-to-value (LTV) limits for motor-vehicle and gold-backed loans will remain as macroprudential measures. Governor Nandalal Weerasinghe added there is no indication the Finance Ministry will change or suspend the vehicle import surcharge.

Colombo market rose after the Central Bank held policy rates steady; ASPI +0.02% to 21,149.56 while S&P SL20 fell 0.21%. SEYB, PKME, CARG and SEMB were main positive contributors as real estate management & development drove 65% of turnover with crossings in ONAL; foreigners net-sold Rs.241m.

91-day Treasury bill yield fell 18bp to 9.95% at the weekly auction as the full Rs.140 billion offered was raised. Money market liquidity rose to Rs.175.20bn and USD/LKR closed about 336.25/336.35.

Chrysalis' Climate Resilience Revolving Fund (CRRF) delivered recovery loans within 3–10 days after Cyclone Ditwah, which caused an estimated Rs.50–85bn in damage to MSMEs; stakeholders agreed to pursue a national blended-finance scale-up and form a technical working group.

Sri Lanka's services exports rose 3.75% year-on-year to $344.52m in June 2026, led by ICT/BPM (+11.31% to $150.49m) and financial services (+29.56% to $3.21m); construction fell 26.14% and transport and logistics dipped 0.79%.

Hatton National Bank (HNB) says sustainability is a core strategic imperative, citing its successful Rs. 10 billion Sustainability Bond issuance and its decision to exclude coal financing. The bank urged board-level governance, better climate data and alignment with CBSL’s Sustainable Finance Roadmap 2.0 and the SLSBI to integrate sustainability across Sri Lankan banks.

CA Sri Lanka is adopting and localising the ISSB's IFRS S1 and S2 as SLFRS S1/S2 and has launched a Preparers' Guide, a Sustainability Governance Code for finance professionals and a CSRSA qualification to strengthen sustainability reporting and governance across the economy.

First Capital Holdings PLC (a JXG subsidiary) achieved multiple sustainability firsts in FY2025/26, becoming the first investment institution globally to receive the SSCI Certificate of Acceptance and Sri Lanka's first investment institution to join UNGC, WEP and PCAF. The firm also joined PRI, verified its carbon emissions and is embedding ESG and SLFRS S1/S2 readiness into governance and investment processes.

Ceylinco Life (Ceylinco Holdings PLC) had 32 green branch buildings by end-2025 that generated ~1.12 GWh of solar energy, harvested 3.08M litres of rainwater and recycled 1.386M litres of water. The company says it has embedded ESG across investments, operations and products and plans to expand renewables and green branches.

L B Finance (LFIN.N0000) launched ESG Roadmap 2.0 with targets to 2030, earned an AAA ESG Rating and reported 4,018 tonnes of independently verified avoided CO2 from its vehicle and solar financing in 2025/26.

Seylan Bank (SEYB.N0000) is approaching the opening of its 300th 'Pahasara' library, a decade-old ESG programme that builds and refurbishes school libraries while providing digital learning, financial literacy and community engagement initiatives.

Citizens Development Business Finance PLC (CDB) has joined the Partnership for Carbon Accounting Financials (PCAF), committing to measure and disclose GHG emissions of its lending and investment portfolios as part of a 700+ institution network. CDB says this aligns it with global disclosure standards and helps set climate targets including alignment with SLFRS S2.

Colombo Stock Exchange ASPI rose 0.24% (up 49.81 points) to 21,199.37 on Thursday, with market turnover at Rs 1.078 billion and capital goods leading turnover at Rs 317.4 million. Top positive contributors included HNB, Carson Cumberbatch, Ceylinco Holdings and NDB, while Melstacorp and Hayleys were negative contributors.

Commercial Bank of Ceylon won six awards — the most by any Sri Lankan bank — at the 2026 Asian Banking & Finance Awards in Singapore. The awards covered Retail, Wholesale and Corporate & Investment Banking, highlighting its AI-powered SME credit underwriting, green financing and its Rs.15bn 2025 Green Bond alongside loan book growth past Rs.2tn.

First Capital Holdings PLC unveiled a refurbished Negombo branch with modern interiors and an expanded team to enhance customer service. The upgrade, at one of its top-performing locations, reflects ongoing investment by First Capital (a subsidiary of Janashakthi Limited) in client touchpoints.

Ceylinco Life (Ceylinco Holdings, CINS.N0000) hosted 10 winning families (40 participants) on an all-expenses-paid Malaysia tour as part of the 19th 'Family Savari' promotion, featuring visits to Kuala Lumpur landmarks and Genting Highlands.

Colombo Stock Exchange ASPI rose 0.40% (up 85.60 pts) to 21,235.16 as banks led turnover (LKR 76.8m) and the S&P SL20 gained 0.73%. Commercial Bank announced the final allotment for its Basel III Tier-2 debenture issue, which was oversubscribed with applications for 244.23m debentures (LKR 24.42bn) and 150m debentures allocated to identified investors.

The CSE, together with the SEC and CA Sri Lanka, held issuer forums in Monaragala (16 July) and Batticaloa (18 July) to educate SMEs on alternative capital raising, IPOs, the SME Creditworthiness Rating Framework and the CSE's Empower Board. Panels featured industry and advisory speakers offering practical guidance on listing and financial management.

HNB PLC has partnered with Lanka Commercial Trading to offer exclusive leasing for Yanmar and Solis tractors and Samurai Naca harvesters, providing Govi Saviya financing, waived first-year Prestige Prime card fee, insurance and service discounts to improve farmers' access to machinery.

Sri Lanka Corporate Director Summit urged companies to raise board governance standards to help rebuild the country's investment appeal. Speakers including Minor International's CEO and LYNEAR Wealth's MD stressed board quality, independence, faster decision-making, AI readiness and sustainability as investor priorities.

Union Bank of Colombo (UBC.N0000) hosted Pensioners' Day and launched a competitive pension loan of up to Rs. 8 million at the bank's lowest interest rates, including Rs. 30,000 in annual PickMe rides for government pensioners. The event included partners such as Nawaloka Hospitals providing health screenings and services.

NDB Wealth marked its 34th anniversary with a client engagement event in Kandy, focusing on family business succession and the implications of global geopolitical shifts for investment and wealth planning.

Professor Narayanage Jayantha Dewasiri co-edited Review of Finance Literature – Volume 6, published by Emerald Publishing and indexed Scopus Q1 / SCImago Q1 with a 2025 CiteScore of 8.4. The volume contains 11 review chapters on topics including non-performing loans, loan portfolio diversification, financial inclusion and sustainability.

LOLC General Insurance and Seylan Bank PLC held a 'League of Greatness' felicitation night celebrating their bancassurance partnership, which operates across 104 Seylan Bank branches and has continued since 2013.

Sri Lanka's gross official reserves fell to $6.4bn from $6.8bn, with the central bank saying higher import outflows—driven by petrol and vehicle imports—caused the decline rather than FX intervention. The bank expects reserves to recover with incoming IMF, ADB and World Bank disbursements.

Sri Lanka's rupee closed at 336.35/40 to the US dollar in the spot market, while bond yields were broadly steady — e.g. the 15.09.2027 bond at 10.30/40%, 15.10.2028 at 10.70/80% and the 15.12.2029 bond at 11.20/30%.

Sri Lanka sold all Rs140bn of Treasury bills at Wednesday's auction; 3-month yield fell 18bp to 9.95%, 6-month fell 3bp to 10.24%, and 12-month was unchanged at 10.20%.