News & market updates

Hatton National Bank PLC reported Q1 2026 PAT of Rs 9.95 Bn and total assets surpassed Rs 2.5 Tn. NII reached Rs 26.9 Bn as NIM expanded to 4.45%; deposits exceeded Rs 2.0 Tn, gross loans passed Rs 1.6 Tn, and capital/liquidity remained strong (Tier I 15.03%, LCR 194.44%).

Sri Lanka's rupee was quoted at 324.50/325.00 to the US dollar and government bond yields were largely flat (e.g. 2028s ~9.65–9.75%), while the ASPI fell 0.19% to 22,963 and the S&P SL20 fell 0.14% to 6,278.

CBSL Governor Nandalal Weerasinghe said the central bank's mandate is limited to preserving price and financial stability and it will not promote economic growth, productivity or FDI. He added policy (including interest-rate) decisions will be data-driven and reserve targets under the IMF program may be revised given external risks such as the Middle East conflict.

Sampath Bank posted PAT of Rs. 6.2 billion for 1Q 2026 on total operating income of Rs. 28.5 billion, with total assets crossing the Rs. 2 trillion mark. PAT fell 26% YoY due to Rs. 4.5 billion impairment charges and lower one-off gains, while NII rose 5% and loans grew by Rs. 127.5 billion.

Treasury Bill auction was fully subscribed, raising Rs.80 billion and saw yields decline to 8.13% (91-day), 8.23% (182-day) and 8.49% (364-day). Secondary bond yields later edged up on profit-taking, money-market liquidity surplus was Rs.255.68bn and USD/LKR closed at 324.00/325.50.

CBSL Economic Research Director Dr. Lasitha Pathberiya warned prolonged Middle East conflict and rising global volatility threaten growth and government revenue, urging sustained structural reforms and stronger fiscal and external buffers. He noted 5% growth in 2025, improved financial-sector metrics, and a likely wider 2026 trade deficit.

Verité Research says Sri Lanka's withholding tax on interest income, raised from 5% to 10% in April 2025, remains low and raising it to 15% could boost annual revenue by about Rs.93 billion to Rs.278 billion. The 10% rate is below the 16% average for middle-income countries and South Asian peers.

Sri Lanka's rupee closed weaker at 326.00/327.00 to the one-week US dollar on Wednesday with no spot trading. Government bond yields were largely steady, with the 01.07.2028 paper at 9.65/75% and minor changes across other maturities.

Treasury auction raised Rs.176.62bn of Rs.250bn offered with yields largely in line or below market (01.08.30 at 10.16%; 15.06.34 at 11.24%; 15.08.36 at 11.40%; 15.08.39 rejected). Secondary bonds rallied, net liquidity surplus was Rs.247.19bn and USD/LKR closed near 322.50/323.00.

Sampath Bank reported PAT of Rs 6.2 Bn for Q1 2026, down 26% YoY mainly due to Rs 4.5 Bn of impairment provisions despite Total Operating Income of Rs 28.5 Bn and 5% NII growth. Total assets topped Rs 2.1 Tn with Rs 127.5 Bn loan growth; capital ratios remain above regulatory minima.

Sri Lanka's rupee weakened to 323.75/324.25 per US dollar (from 323.70/90), while bond yields edged lower and an 80,000 million rupee Treasury bill auction is ongoing. The ASPI fell 0.12% to 22,987 and telegraphic transfer USD rates were 319.00/326.00.

Sri Lanka sold Rs176.62bn of 2030, 2034 and 2036 bonds after offering Rs250bn, with average yields of 10.16% (2030), 11.24% (2034) and 11.40% (2036); no bids were accepted for the 2039 bond.

Sri Lanka's rupee closed weaker at 323.70/90 to the US dollar (from 322.00/30), while government bond yields edged lower — e.g. the 01.07.2028 bond at 9.60/70% (down from 9.65/75%). An 80,000 million rupee Treasury bill auction is scheduled for Wednesday.

Foreign investors sold a net US$4.06 million (1,280 million rupees) of Sri Lanka government rupee bonds in the week to May 7, central bank data showed. The outflow brings total foreign investment into rupee bonds to 1,366 million rupees in the first 18 weeks of 2026, down sharply amid depreciation pressure and higher fuel-driven inflation.

HNB Life PLC reported Gross Written Premium of Rs.7.01 billion for the quarter ended 31 Mar 2026, up 54% y/y. Net written premium rose 54% to Rs.6.69bn, profit after tax was over Rs.210m, and total assets reached Rs.71.38bn.

DFCC Bank reported Group core business PAT of Rs. 1.7 billion for the quarter ended 31 March 2026. Total assets rose 3% to Rs. 884 billion, net fee and commission income grew 34% and impairment charges increased to Rs. 3,163 million; integration of Standard Chartered's Sri Lanka wealth and retail operations is underway.

The Sri Lankan rupee weakened to 322.25/65 per US dollar from 322.00/30, while government bond yields were largely steady ahead of a 250,000 million rupee Treasury bond auction and an 80,000 million rupee T-bill auction. The All Share Price Index was up 0.14% and the S&P SL20 up 0.05%.

Secondary bond yields held broadly steady and activity was subdued ahead of a Rs.250 billion Treasury bond auction on 12 May 2026 across four maturities. Fiscal data showed a stronger primary and overall budget surplus for Feb 2026, USD/LKR closed near 322.00/322.40 and money-market liquidity was a Rs.262.96bn surplus.

Sri Lanka's rupee closed weaker at 322.00/30 to the US dollar on Monday (from 321.70/90), while government bond yields were largely steady. Authorities will auction 250,000 million rupee Treasury bonds on Tuesday and 80,000 million rupee Treasury bills on Wednesday.

DFCC Bank reported Group core business PAT of LKR 1.8 Bn and a Group total capital adequacy ratio of 16.092% for the quarter ended 31 Mar 2026. Net interest income rose 12% to LKR 8.3 Bn and net fees grew 34% to LKR 1.9 Bn, while higher impairment charges and LKR 569 Mn unrealised equity losses weighed on results; integration of Standard Chartered’s Sri Lanka wealth and retail operations is underway.

Sri Lanka's rupee was quoted at 321.40/90 to the US dollar and bond yields were broadly steady with quoted yields around 9.75–11.05%. Authorities plan auctions this week for 250,000 million rupee Treasury bonds and 80,000 million rupee Treasury bills.

Sri Lanka recorded a primary surplus of Rs. 545.42 billion in Jan-Feb 2026 (up 66% YoY) and an overall Budget surplus of Rs. 169.71 billion, with revenues rising 35.5% to Rs. 1.03 trillion while expenditure growth was contained at 1.6%.

Private sector credit rose by Rs. 258.4 billion M-o-M to Rs. 10.7 trillion in March (2.5% M-o-M) and expanded 27.1% YoY. Domestic banking units accounted for most of the increase, and the CBSL expects credit momentum to continue in 2026 though it may moderate amid geopolitical risks.

Secondary bond yields fell across the curve last week after US–Iran deal optimism improved risk sentiment (e.g., 01.07.28 down from 9.80% to 9.65%, 15.12.29 from 10.10% to 9.95%). The 91- and 364-day T‑Bill yields held at 8.20% and 8.52%, a T‑Bill auction was fully subscribed (aggregate Rs.108.44bn) and a Rs.250bn Treasury Bond auction is scheduled.

CBSL Deputy Governor Chandranath Amarasekara warned that tightening global conditions leave little room for policy mistakes and urged structural reforms over short-term stimulus. He said the government moved from a large overdraft to a surplus in the banking system, the CBSL has expanded market-conduct supervision of banks, and the ADB cautioned repeated crises increase risks.

Sri Lanka's official worker remittances rose 18.9% to US$767.9m in April 2026 and were up 24.5% to US$3,062.8m in Jan–Apr 2026. The rise reflects more Sri Lankans working abroad and a shift from informal transfers after central bank policy and exchange-rate normalization.

Sri Lanka's rupee closed weaker at 321.70/90 to the US dollar, slightly softer than the prior session, while government bond yields were largely steady — for example, the 15.02.2028 bond at 9.40/55% and the 15.06.2034 bond at 11.12/17%.

Sri Lanka's official reserve assets fell below USD 7 billion in April 2026, declining from USD 7,026 million at end-March to USD 6,759 million (a 3.8% drop); foreign currency reserves fell 4.3% to USD 6,505 million. Reserves had briefly exceeded USD 7.28 billion in February but have fallen for two consecutive months.

Sri Lanka's rupee was quoted at 321.80/90 per US dollar on Friday, slightly weaker than 321.70/85 the previous day; government bond yields were mostly steady with quoted tenors around 9.65%–11.20%. The ASPI fell 0.20% to 22,952.

Lanka Realty Investments (ASCO.N0000) reported FY26 pre-tax profit of Rs.2.92 bn, total assets of Rs.29.7 bn and NAV per share of Rs.51.40, driven by fair value gains and a value-accretive 51% acquisition of Lee Hedges; the enlarged portfolio and lower LTV support stronger recurring income.