News & market updates

Treasury expects Sri Lanka's sovereign rating to be upgraded from CCC+ to B- by early 2027 amid fiscal consolidation. Officials said talks are underway with three major rating agencies and the government plans to return to markets to raise $1.5bn in 2027-28.

HNB General Insurance appointed Lakshman Silva as Non-Executive/Nominee Director and Sandra De Zoysa as Independent/Non-Executive Director to its board. The appointments are intended to strengthen governance and drive digital/CX transformation as the insurer scales its platforms and customer service architecture.

IRCSL, with FALIA (Japan) and IASL, launched the National Essay Competition on Life Insurance for School Children – Sri Lanka 2026; registration is 15–31 July 2026, the supervised exam is 22 Aug 2026, and national prizes are Rs.75,000/50,000/25,000 (plus district prizes of Rs.5,000).

Sri Lanka sold Rs15,000 million of Treasury bonds on tap at auction-set yields, bringing weekly bond sales to Rs165 billion; yields were 11.57% (2030), 12.04% (2034) and 12.58% (2037).

Sri Lanka's services PMI rose to 58.5 in June 2026 (from 56.9 in May), with growth driven by financial and professional services and gains in insurance. Employment and new business increased and firms expect stronger activity into the next quarter aided by tourism, though global uncertainties remain a risk.

PMI: Manufacturing at 53.0 and Services at 58.5 in June 2026, indicating continued expansion in both sectors. Manufacturing growth slowed with production led by food & beverages and firms citing labour shortages and longer supplier delivery times; services expansion was driven by financial/professional services and insurance, with tourism expected to boost activity.

Sri Lanka's Manufacturing PMI was 53 in June and the Services PMI 58.5, indicating continued expansion while manufacturing slowed from May; outlook for both sectors remains positive but downside risks persist from the Middle East conflict and global uncertainties.

HNB Life PLC won three Gold awards in the Quality Improvement Project Category at the National Convention on Quality and Productivity 2026. The recognised projects target customer experience, operational efficiency and workforce empowerment using technology-driven innovation.

Sri Lanka's Treasury bill yields fell at Wednesday's auction and all Rs120 billion offered were sold. The 3-month was down 8bps to 10.13% (Rs55bn sold), the 6-month down 3bps to 10.27% (Rs35bn) and the 12-month down 1bp to 10.20% (Rs30bn).

The Cabinet approved a five-year National Policy (2026–2030) to prevent money laundering, counter terrorist financing and combat financing of WMD proliferation. The policy follows the Central Bank FIU's 2024–25 national risk assessment aligned with FATF standards and aims to strengthen coordination and preventive measures.

Corporate Management Consultants will hold a seminar on compliance with Beneficial Ownership provisions under the Companies Act No. 12 of 2025 for Company Secretaries. Speakers include LOLC General Insurance PLC Chairman Kithsiri Gunawardene, the Central Bank FIU DG and officials from the Registrar of Companies.

Insurance industry GWP rose 24.54% to Rs.114,863 million in 1Q 2026 from Rs.92,229 million a year earlier. Total assets grew 16.65% to Rs.1,478,777 million and industry PBT edged up 3.14% to Rs.9,978 million, with Life PBT down 11.5% and General PBT up 28.1%.

Sri Lanka sold Rs150 billion of government bonds across 2030, 2034 and 2037 maturities, with average yields of 11.57%, 12.04% and 12.58% respectively; all offered amounts were sold and are available on tap.

LOLC General Insurance PLC launched V Help, an enhanced motor insurance service offering eligible policyholders remote technical guidance and roadside assistance. The service connects customers to the Motor Engineering Unit and authorised roadside providers for advice, minor repairs and assistance.

Ceylinco General Insurance's AI visibility score jumped from 28.5 to 83.6 in April, the largest one-month move in BrandRadar's March–May AI Visibility Index of 198 Sri Lankan brands across major LLMs. The study highlights rapid, platform-specific swings in AI recommendations that affect insurers and hotels.

Foreign portfolio inflows into rupee-denominated government securities totalled Rs 32.04 billion for the week ending 9 July—the largest weekly inflow since Feb 2013—raising foreign holdings to Rs 168.90 billion. Secondary bond yields re-priced higher mid-week amid rising oil prices and geopolitical risk, T-Bill auction yields broadly steady, and the rupee weakened to ~Rs 335.8; a Rs 150 billion Treasury Bond auction across three maturities is scheduled on 15 July.

Union Assurance PLC (UAL.N0000) was named a Celent Model Insurer for Customer Experience in 2026 for its Connected Life Initiative. The programme, driven by the Clicklife app and AI Suwamaga+, has 100,000+ downloads, 69% straight-through automated underwriting and cut claims handling time by over 80% to ~5 minutes.

A seminar on Beneficial Ownership compliance will be held on 22 July 2026 at The Kingsbury, Colombo to provide guidance on BO filings under the Companies Act No. 12 of 2025 and CBSL Direction 2 of 2026, highlighting the statutory BO filing deadline of 30 September 2026 and non-compliance risks.

Arpico Insurance PLC appointed Naresh Tillekeratne to its Board of Directors; he brings over 35 years' experience in international banking, risk management and senior leadership to support the company's governance and growth.

Sri Lanka Insurance Corporation General Ltd launched Beechat, Sri Lanka's first generative AI‑powered trilingual insurance assistant offering 24/7 policy access and real-time claim updates in Sinhala, Tamil and English. The assistant is available via SLICGL's website and customer portal to streamline customer service and digital engagement.

Sri Lanka Insurance Life declared a Rs. 14.68 billion bonus to policyholders for 2025, the largest annual life-insurance bonus in Sri Lanka. The company reported PBT of Rs. 4.3 billion, GWP of Rs. 32.6 billion (+24% y/y), assets of Rs. 275 billion and a Life Fund of Rs. 247 billion.

SANASA Life Insurance has resumed full business operations after the Insurance Regulatory Commission of Sri Lanka lifted its temporary suspension. The company says it continued to honor valid claims during the suspension and will implement nationwide initiatives to reconnect with customers and partners.

Sri Lanka sold all Rs100bn of Treasury bills at Wednesday's auction; 3-month yield 10.21% (-2bp), 6-month 10.30% (unchanged), 12-month 10.20% (+1bp). The 3-month sold Rs58.47bn (Rs50bn offered), 6-month sold Rs35bn, 12-month sold Rs6.53bn.

Sri Lanka Insurance Corporation General Limited launched Beechat, a trilingual generative AI insurance assistant providing 24/7 policy information and real-time claim status via the company's website and customer portal.

SANASA Life has resumed full operations after the Insurance Regulatory Commission of Sri Lanka lifted a temporary suspension; the company says it continued to honor valid claims during the suspension and will roll out nationwide initiatives to rebuild distribution and customer engagement.

Ceylinco Life has commenced construction of its 36th company-owned branch in Kirindiwela, a 3,440 sq ft eco-friendly building planned to operate on a 100% self-sufficient solar system. The branch will use local prefabricated technology and include rainwater harvesting, an STP and energy-efficient systems.

The Securities and Exchange Commission has invited applications for licences to operate as credit rating agencies in Sri Lanka, with applications accepted until 5 October 2026. Applicants must meet eligibility and governance requirements and be promoted by a foreign CRA or a CBSL‑licensed bank with at least five years' rating experience; Sri Lanka currently has two SEC‑licensed CRAs.

Ceylinco Life has begun building its 36th company-owned eco-friendly branch in Kirindiwela, a 3,440 sq ft facility planned to run on 100% solar power. The branch will use local prefabricated technology and include rainwater harvesting and wastewater recycling facilities.

HNB General Insurance was the only general insurer named among Sri Lanka's 50 Best Workplaces™ 2026, ranking 16th in the Large Sized Workplaces category. 95% of participating HNBGI employees rated the company's workplace culture extremely highly.