News & market updates

Flash Health raised a $200,000 seed round led by nVentures to scale its cashless outpatient (Cashless OPD) platform. The startup highlighted partnerships with insurers including Union Assurance, Janashakthi Insurance and HNB Assurance and will use funds to deepen insurer integrations, expand homecare and medicine delivery.

Flash Health raised US $200,000 in a seed round led by nVentures to scale its cashless outpatient (Cashless OPD) platform in Sri Lanka. The startup partners with insurers including Union Assurance and Janashakthi Insurance to offer cashless consultations, medicine delivery, telemedicine and homecare services.

Cabinet approved continuation and expansion of the 'Suraksha' Student Insurance Program for 2025–26 under a new agreement with Sri Lanka Insurance Corporation General Ltd., adding five critical illnesses and raising the low‑income parent death threshold to Rs.240,000. From 1 Sep 2025 claims can be submitted at any regional Sri Lanka Insurance office and benefits for devices/medication have been increased (e.g. Rs.75,000 for scoliosis braces, Rs.20,000 for long‑term medication).

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Sri Lanka sold Rs1,000 million of 12-month Treasury bills on tap at an average yield of 8.45%, bringing total bills raised this week to Rs58.39 billion; settlement date is Jan 2.

Sri Lanka sold Rs2,500 million of Treasury bonds on tap at a weighted average yield of 10.90% for the 01 July 2037 bond, taking weekly bond sales to Rs45.68 billion. Total market subscription was Rs3,416 million and settlement was on January 1.

Sri Lanka Insurance Life and Sri Lanka Insurance General inaugurated business operations for 2026 on 1 January at the Sri Lanka Insurance Head Office. Management said 2025 delivered strong performance and outlined a 2026 focus on customer centricity, governance and a digital-first growth strategy.

Sri Lanka Insurance Life Ltd and Sri Lanka Insurance General Ltd inaugurated business operations for 2026 at the SLIC head office on 1 January and unveiled SLICGL’s 2026 theme, “Leading the market, strengthening every step.” The release highlights SLICGL’s 2025 achievements including an A+ Fitch rating, surpassing Rs.30bn in gross written premium, carbon neutral certification, cyclone relief claims handling and the Suraksha school insurance partnership covering 4.5 million children.

Sri Lanka Insurance Life Ltd and Sri Lanka Insurance General Ltd inaugurated business operations for 2026 on 1 January and unveiled SLICGL’s 2026 theme, 'Leading the market, strengthening every step'. In 2025 SLICGL was the only A+ Fitch-rated insurer in Sri Lanka, surpassed Rs.30 billion in gross written premium, secured carbon-neutral certification, supported cyclone relief and continued the national Suraksha school insurance scheme.

ASPI rose 42% in 2025, lifting market capitalization 41.67% to Rs. 8.07 trillion and generating Rs. 2.4 trillion in value. Final-day turnover exceeded Rs. 4.6 billion, three firms (CALH, JFP, WTS) listed during the year, and JKH, SFCL, ACL, SAMP and HASU were top contributors.

Central Bank of Sri Lanka will close the Public Debt Department on 01 January 2026 and transfer the LankaSecure Division to its Payments and Settlements Department. The Finance Ministry's Public Debt Management Office has already assumed debt management functions and CBSL will continue to operate the scripless securities settlement and central depository, with the PSD Director as Registrar of Government Securities.

The Colombo stock market gained Rs.84 billion as the ASPI rose 1.42% to 22,445.89. Top contributors included Colombo Dockyard, Melstacorp, Hatton National Bank, Richard Pieris and Commercial Bank, with capital goods, banking and materials driving turnover and hotel stocks seeing buying interest.

Sri Lanka sold Rs43.18bn of government bonds: Rs18.18bn of the 01 Jul 2030 at an average yield of 9.80% and Rs25.00bn of the 01 Jul 2037 at an average yield of 10.90%, from an offer of Rs50bn; the 2030 bond is available on tap.

Cyclone Ditwah has inflicted widespread damage in Sri Lanka, with reconstruction costs estimated up to US$7 billion and GDP growth seen slowing to about 3% in 2026. Business confidence fell (BCI down from 189 to 164) and the government has sought US$200m in IMF emergency aid.

Amana Takaful PLC is converting 43,025,354 debentures into ordinary voting shares at a conversion price of Rs.4.50. Its share was trading up 3.77% at Rs.24.80.

The Science and Technology Ministry revived Regulatory Impact Assessment (RIA) in 2025 and launched pilot RIA studies across eight regulatory agencies (including the Insurance Regulatory Commission, Consumer Affairs Authority and Sri Lanka Tea Board) with UNIDO support. The pilots aim to embed evidence-based rulemaking to reduce regulatory uncertainty and improve investor confidence.

Namunukula Plantations bought 4,039,426 ordinary shares (0.95%) of National Development Bank from Arpico Insurance for Rs. 555.41 million at Rs. 137.50 per share. The transaction is a related-party, non-recurrent deal between subsidiaries of Richard Pieris & Co and falls within CSE Listing Rules limits.

Depositors allege court-appointed controllers of the defunct Finance & Guarantee group diverted asset sale proceeds — including an alleged Rs.200m hotel investment and other withdrawals — contrary to a Supreme Court-approved 51% repayment plan, and will seek renewed Court intervention.

Secondary bond yields closed higher week‑on‑week after the weekly T‑Bill auction pushed weighted average rates up across maturities (364‑day +16bp); the Rs.150bn T‑Bill offer was 54.97% subscribed (Rs.82.45bn raised). Foreign holdings fell by Rs.1.55bn and money‑market liquidity rose to Rs.111.66bn; USD/LKR closed near 309.70.

Amana Takaful PLC converted 43,025,354 convertible debentures into an equal number of ordinary voting shares at Rs.4.50 each, representing approximately Rs.193.6 million and 64.53% of outstanding debentures. The conversion follows CSE approval (letter dated 16 Dec 2020); NAV per share was Rs.23.45 at end-September 2025.

Fitch Ratings says global private credit will continue to grow in scale and complexity in 2026, with closed-end funds and business development companies projected to reach $2.3tn AUM at end-2025. Fitch views risks as not currently systemic but notes potential transmission via insurers and banks, and that interest-rate cuts should ease borrower stress and reduce defaults.

HNB General Insurance won the Gold Award in the Insurance Sector at the National Management Excellence Awards 2025 (NMEA), recognising its management transformation, operational strength and customer-focused insurance solutions.

The Insurance Regulatory Commission of Sri Lanka extended the suspension on Sanasa Life Insurance Co. PLC’s long-term insurance activities from 27 Dec 2025 to 30 Jan 2026. The company reported net assets per share of Rs.22.61 at end-September 2025 with Senthilverl Holdings holding 19.10%.

Sri Lanka Insurance (SLIC Life and SLIC General) provided dry rations and assistance to 1,000 families affected by Cyclone Ditwah on 30 Nov and 2 Dec 2025 and has extended operating hours at selected branches to support claims and customer service.

Sri Lanka has yet to fully assess Cyclone Ditwah's economic fallout; the World Bank's rapid estimate puts direct physical damage at $4.1bn (about 4% of GDP), while the government says a comprehensive damage-and-needs assessment will take at least four weeks and likely show higher total costs.

Sri Lanka Treasury bill yields rose at Tuesday's auction, with the 12-month yield up 16 basis points to 8.19%. The debt office offered 150 billion rupees and raised 82.4 billion; 3-month and 6-month yields climbed to 7.55% and 7.95% respectively, with sales below offers.