News & market updates

Sri Lanka's CCPI inflation rose to 5.4% in April 2026, up from 2.2% in March, after a roughly 35% government fuel price increase; the rise may prompt the Central Bank to tighten monetary policy sooner than expected.

Sri Lanka's headline inflation accelerated to 5.4% year‑on‑year in April 2026, up from 2.2% in March, driven mainly by higher transport (petrol +Rs.91.18/l, diesel +Rs.88.82/l) and utility costs (12.5kg LP gas +Rs.595.81; electricity). Food inflation also rose to 2.7%, supporting the Central Bank's projection but keeping monetary policy risks elevated.

Sri Lanka's rupee was quoted at 319.50/320.50 to the US dollar in the spot market and bond yields were broadly steady, with 15.09.2029 and 15.10.2029 bonds quoted around 9.90–10.00%. Telegraphic transfer rates and CSE indices were little changed (ASPI up 0.08% at 22,617).

Seylan Bank reported PAT of LKR 2,906 Mn in Q1 2026 (up 5.25%) and PBT of LKR 4,548 Mn (up 8.31%). Total assets reached LKR 943 Bn, ROE was 14.39%, impaired loans ratio 1.01% and CET1 stood at 11.40%.

Seylan Bank (SEYB.N0000) reported 1Q 2026 PAT of Rs. 2.91 billion, up 5.25% YoY, and PBT of Rs. 4,548 million (+8.31%), as total assets rose to Rs. 943 billion. Net interest income and fee income grew, impairment charges fell and asset quality remained strong.

The weekly T‑bill auction saw strong demand for the 91-day bill issued at a weighted average yield of 8.20% (‑7bp) and the auction raised Rs.126.90bn (90.64% subscribed). Secondary bond yields were broadly steady, market liquidity neared Rs.248.48bn and the rupee closed at Rs.319.75/320.50.

Sri Lanka's rupee closed weaker at 319.75/320.60 to the US dollar in the spot next market (from 319.00/320.00), while government bond yields were broadly steady — e.g. 15.09.2029 at 9.95/10.00% and 01.07.2030 around 10.15/20%.

3-month Treasury bill yield fell 7 bps to 8.20% at the Apr 29 auction, with 126.9 billion rupees sold of 140 billion offered. The 6-month yield rose 2 bps to 8.25% (25.26b sold of 45b) and the 12-month was unchanged at 8.52% (31.86b sold of 40b).

Sri Lanka's rupee weakened to 319.50/320.50 against the US dollar while government bond yields were mostly steady and an auction of 140,000 million rupees of Treasury bills was ongoing.

Secondary bond yields held broadly steady as markets stayed subdued ahead of a Rs. 140 billion Treasury Bill auction (Rs.55b 91-day, Rs.45b 182-day, Rs.40b 364-day). Liquidity surplus stood at Rs.231.90b and USD/LKR closed around 319.00/320.00.

Brent crude rose above $110, trading as high as $112.70 a barrel, the strongest in three weeks. The jump stoked inflation concerns, pushed up sovereign bond yields and revived expectations that central banks may lift interest rates.

Sri Lanka's rupee closed at 319.00/320.00 to the US dollar, weaker from 318.00/318.25 the previous day, while secondary-market government bond yields were broadly steady ahead of a Rs 140,000 million Treasury bill auction; select benchmark maturities showed little change.

Rising energy costs from the Iran war are widening economic strain across emerging markets, prompting tighter monetary policy and fiscal pressure; the IMF cut growth for emerging and developing economies to 3.9% from 4.2%, with countries like Sri Lanka, Egypt and Pakistan highlighted as vulnerable.

Sri Lanka’s rupee was quoted at 319.00/320.00 to the US dollar, weakening from 318.00/25 the previous day, while secondary-market bond yields were broadly steady (e.g., a 15.10.2029 bond at 9.95/10.00%). Analysts said the depreciation followed central bank FX swaps and dollar purchases that boosted liquidity; a 140,000 million rupee T-bill auction is scheduled Wednesday.

Verité Research says Sri Lanka's treasury cash swung from a deficit of Rs. 832 billion in 2022 to a surplus of Rs. 1,205 billion by August 2025 after Rs. 1,783 billion of excess borrowing, increasing the interest burden on unused funds. The surplus improves short-term liquidity but worsens fiscal costs as the Government pays more interest on borrowed money than it earns on the cash buffer.

Secondary bond yields were broadly steady as money-market liquidity rose above Rs.200bn and the Central Bank drained Rs.25.00bn via an overnight repo at a weighted average rate of 7.70%. January fiscal data showed revenue and grants up 35.3% YoY to Rs.468.75bn and the primary surplus up 86.7% YoY to Rs.222.82bn; USD/LKR closed around Rs.319.

Abans Finance PLC's initial Rs. 1 billion debenture issue was oversubscribed, attracting Rs. 1.31 billion in subscriptions (13.14 million debentures). The company offered 10 million debentures of Rs.100 each with an option to issue a further 5 million, enabling up to Rs. 1.5 billion.

Sri Lanka's rupee closed around 318.00/25 to the US dollar in the spot market with interventions at 317.75 and 318.00; the spot next closed at 319.00/10 and banks quoted TT around 321.25. Secondary bond yields were broadly steady, with near-term and long-term issues trading largely flat (e.g., 2026 at ~8.65/75%).

Sri Lanka rupee quoted at 318.25/319.00 to the US dollar on Monday, unchanged from Friday; government bond yields were broadly steady, e.g. the 15.12.2028 bond at 9.80–9.90% and 01.03.2030 at about 10.00%.

Oil climbed about 2% to a three-week high of $107.97 a barrel as stalled U.S.-Iran talks prolonged disruptions to Middle East energy exports. Renewed AI-driven buying lifted chip stocks while markets braced for multiple central bank meetings and interest-rate guidance this week.

Sri Lanka's budget was almost in surplus in January 2026 with a gap of 3.8 billion rupees after 2025's deficit collapse, but the central bank's depreciation of the rupee has pushed up the cost of living.

Sri Lanka's credit card base grew 1.3% to 2,193,380 active cards at end-February, while outstanding balances rose 0.5% to Rs. 190.65 billion. Growth was driven by globally accepted cards, which increased 1.3% to 2,184,600 active cards.

Money market liquidity surplus rose sharply to Rs. 199.17 billion from Rs. 106.32 billion. T-bill yields moderated at the auction (aggregate accepted Rs. 121bn), foreign holdings of rupee Treasuries rose by Rs. 1.28bn to Rs. 144.20bn, and USD/LKR weakened to Rs. 318.40/318.70.

Federal prosecutors have closed the criminal investigation into Federal Reserve Chair Jerome Powell over cost overruns on the Fed’s D.C. headquarters renovation and handed the matter to the Fed’s inspector general; prosecutors said they could reopen the probe if warranted.

Secondary Treasury bond yields held broadly steady for a fourth session with limited trades (total secondary turnover Rs.36.95bn), while net money-market liquidity rose to Rs.167.46bn; USD/LKR spot next closed at Rs.318.25/319.00.

Asia shares were mixed while oil rose over 1% as Middle East tensions and stalled U.S.-Iran talks kept markets on edge; Brent hit $106.21/bbl and U.S. crude $96.77. Investors also eyed central bank decisions next week and a yen near 159.78 per dollar.

Seylan Bank (SEYB.N0000) launched the Seylan Accelerate Salary Advance Facility, offering eligible salaried customers (Prime/Premier tiers) interest-free access to a portion of their monthly salary for short-term liquidity and urgent expenses.

The Employees' Provident Fund's net assets rose 13.6% to Rs. 4.9 trillion at end-2025, supported by higher contributions and investment income, and the CBSL approved a 10.75% interest rate on member balances for 2025.

Sri Lanka's Employees' Provident Fund net assets rose 13.0% to Rs. 4,942.9 billion in 2025, driven by 15.6% higher member contributions and 7.6% growth in investment income; the Central Bank approved a 10.75% interest rate on member balances for 2025.

Weekly Treasury Bill auction was fully subscribed; the 91-day yield rose 12 bps to 8.27% (182-day +1bp to 8.23%, 364-day unchanged at 8.52%). Secondary bond yields were broadly steady, secondary turnover was Rs. 36.95bn, net liquidity surplus Rs. 151.01bn, and USD/LKR closed at 316.75/317.00.