News & market updates

IMF warns Sri Lanka's debt risks remain elevated and says capacity to repay the Fund has weakened after Cyclone Ditwah, with IMF credit outstanding projected to peak at 3.1% of GDP in 2027. The Fund urges strict adherence to the Public Financial Management Act, fiscal discipline, and safeguards for emergency and reconstruction spending.

The weekly Treasury Bill auction offers Rs.150.00 billion (Rs.35bn 91-day, Rs.70bn 182-day, Rs.45bn 364-day), the largest in 28 weeks and well above estimated maturities of ~Rs.95bn. NCPI fell to 2.4% in November; secondary bond yields were ~9.55–10.30%; liquidity surplus rose to Rs.88.40bn and USD/LKR closed near 309.6.

Sri Lanka Insurance Life and Sri Lanka Insurance General provided relief to 1,000 families affected by the ‘Ditwah’ cyclone, distributing dry ration packs on 30 Nov and 2 Dec 2025; they also extended operating hours at selected SLIC General branches to support claims and customer service.

Sri Lanka Insurance Corporation General Limited (SLICGL) was the Official Insurance Partner of the Colombo Motor Show 2025 (21–23 Nov) at BMICH, reaching over 70,000 visitors and showcasing its Motor Plus product with virtual inspection and Bee Express online payments.

Think tank Centre for a Smart Future recommends Sri Lanka issue debt with climate-contingent clauses or catastrophe bonds to suspend debt service or deliver rapid payouts when natural disasters strike.

Allianz SE will donate €200,000 for flood recovery in Sri Lanka — €100,000 to the Sri Lanka Red Cross and €100,000 for post-disaster support implemented with Allianz Insurance Lanka and local partners; this is part of a €600,000 regional relief for Southeast Asia.

Fitch says most Sri Lankan insurers' losses from Cyclone Ditwah are likely limited due to low non-motor retention and reinsurance, but the sole domestic reinsurer NITF is more exposed without retrocession. Fitch expects 2025 underwriting profitability to be pressured and insured losses to exceed prior records, though rated insurers' capital buffers and reinsurance programs should largely protect credit profiles.

Secondary bond market activity moderated as yields held broadly steady and total transacted Treasury volume was Rs. 30.64 billion on 17 December. Net liquidity surplus narrowed to Rs. 66.08 billion, overnight call/Repo at 7.97%/8.01%, and USD/LKR spot ~309.40/309.55.

Allianz SE will donate €200,000 to support Sri Lanka flood relief—€100,000 to the Sri Lanka Red Cross and €100,000 for post-disaster recovery and climate-resilience work via Allianz Insurance Lanka and local partners—part of a €600,000 Southeast Asia relief package.

Fitch says Cyclone Ditwah flood losses will likely be limited for most Sri Lankan insurers due to low non-motor retention and reinsurance, but the sole local reinsurer NITF is more exposed without retrocession cover and Fitch expects underwriting profitability pressure in 2025.

The agricultural pension payment window has been extended to December 31 so farmers can collect December pensions at post offices or sub-branches during working days. Currently 178,753 farmers and 6,312 fishermen receive pensions, with Rs 413 million paid for December.

AIA Sri Lanka was named the Most Valuable Insurance Brand in CEO Magazine’s ‘Sri Lanka’s Top 25 Most Valuable Brands for 2025,’ highlighting its brand strength, market leadership and digital transformation efforts.

Dividend · Rs 10.00 · XD Dec 24, 2025

Second Interim dividend of LKR 10/share; XD 2025-12-24; record 2025-12-25; payable 2026-01-14; FY 2025

Sri Lanka's GDP grew 5.4% in Q3 2025. Agriculture rose 3.6%, manufacturing 8.1% and services 3.5%, with insurance up 18%, financial services 13.2%, accommodation/food 9.3% and IT services 8.5%; central bank stability supported activity despite a weakening rupee.

HNB PLC has partnered with Hayleys Fentons to offer tailored EV leasing, discounted insurance and complimentary life cover (Rs.600,000 natural death; Rs.4,500,000 accidental), plus a 7kW charger and service benefits to support EV adoption.

Colombo market extended its rally to five sessions as the ASPI gained 1,011.18 pts (4.7%) for the week, reclaiming Rs.320.65 bn in market value; yesterday ASPI closed at 22,508.26 with turnover of Rs.3 bn. Top contributors included SFCL, JKH, HAYL, WIND and VLL; DOCK and HNB saw share price declines.

Central Bank Governor Nandalal Weerasinghe urged stronger research and collaboration to navigate overlapping global shocks, calling for building external reserves, restoring fiscal space, state-owned enterprise reform and a stronger, well-capitalised financial system.

IRCSL and the Financial Intelligence Unit signed a Terms of Reference on 2 December 2025 to conduct joint supervision of licensed insurance companies and brokers for compliance with AML/CFT/CPF laws. The TOR outlines scope, objectives and responsibilities and builds on a 2018 MOU.

People’s Insurance PLC has appointed Chandana Guniyangoda as its new Independent Chairman. Guniyangoda is a veteran finance professional with 27+ years' experience and prior senior roles at NDB Bank, Sampath Bank and Aitken Spence.

People’s Insurance PLC appointed Mr. Chandana Shubhashana Guniyangoda as Independent Chairman, effective 10 December 2025. He has over 27 years' experience, including 19 years in commercial banking with senior finance roles at NDB and Sampath Bank.

The Insurance Regulatory Commission of Sri Lanka suspended Sanasa Life Insurance's registration to carry on long-term insurance business from Dec 5 until Dec 26, citing inadequate solvency margin, conduct detrimental to policyholders/national interest, regulatory breaches and false/misleading data. The suspension is without prejudice to the company's obligations to existing policyholders.

LOLC General Insurance PLC appointed Dulip Samaraweera as a Non-Executive Director. He brings over two decades of financial services experience and currently holds multiple board roles across the LOLC Group.

Sri Lanka sold Rs43 billion of Treasury bills at auction; 3-, 6- and 12-month yields were unchanged at 7.51%, 7.91% and 8.03% respectively.

Janashakthi Life is the title sponsor of the Janashakthi Life – ICA International Half-Marathon 2025 in Colombo, which is sold out with over 2,000 participants and a Rs.5,700,000 prize pool. Other sponsors include Dialog and Lanka IOC, and proceeds will support ICA charitable initiatives including organ donation awareness.

The Ceylon Chamber coordinated Cyclone Ditwah relief with member companies including Aitken Spence, Central Finance, Union Assurance, Union Bank, Eastern Merchants and Wealthtrust, mobilising over 190 volunteer hours and handling 40,000+ emergency assistance requests to support the DMC’s emergency operations.

Finance Ministry Secretary Dr. Harshana Suriyapperuma says Rs. 1,893 million has been received for the 'Rebuilding Sri Lanka' initiative and that insurance companies have begun compensating losses from Cyclone Ditwah, with minor damage payouts already underway and larger claims to follow after verification.

IRCSL launched "InsureChamp 2025", an inter-university insurance quiz competition held on 20 November 2025 to boost insurance awareness and careers among undergraduates. Seventeen universities participated; University of Kelaniya won, University of Peradeniya was first runner-up and University of Jaffna second runner-up.

Rs. 1,893 million in local and foreign contributions has been secured for the 'Rebuilding Sri Lanka' programme; the Insurance Regulatory Commission convened insurers and companies have begun prompt compensation for minor Cyclone Ditwah damage, with larger claims paid after verification.

Sri Lanka’s Insurance Regulatory Commission met insurers to set up a fast claims-settlement mechanism after Cyclone Ditwah. Insurers have begun paying compensation for minor damage; larger claims will be verified and partial payments may be released immediately.

Markets are pricing an almost-certain 25bp Fed rate cut at the Dec. 9–10 meeting (about 87% probability) as Fed officials are sharply divided and political pressure rises, raising concerns about greater volatility in short-term rates.