News & market updates

Sri Lanka Customs collected 226.4 billion rupees in March, 25.2% above the 180.4 billion rupee target, and 677.3 billion rupees in Q1, 33.7% above the quarter target. Officials said stronger enforcement, improved valuation and a rebound in import volumes drove the gains.

Foreign investors sold US$44.1 million (Rs13,658 million) of Sri Lanka rupee government bonds in the two weeks to March 31, reducing net foreign holdings to Rs2,251 million in the first 14 weeks of 2026, the Central Bank said.

Sri Lanka's rupee closed stronger at 315.30/40 to the US dollar (from 315.60/80), while government bond yields were broadly steady; key maturities ranged roughly from 8.90% to 11.00%, with small declines on the 01.05.2028 and 01.06.2033 papers.

Sri Lanka's rupee strengthened to 315.20/60 per USD on Thursday and bond yields were broadly steady (15.09.2029 quoted at 9.90–10.00%; 01.03.2030 at 10.00–10.05%; 01.06.2033 around 11.00%). The ASPI rose 0.65% to 21,203.19 while the S&P SL20 slipped 0.04% to 5,901.80.

DFCC Bank participated in the Ceylon Chamber of Commerce Export Acceleration Program, highlighting sharper currency volatility, payment risks and shifting trade dynamics that are pushing exporters to seek integrated treasury, trade services and advisory support. The bank said exporters are pursuing more measured, disciplined growth.

Sri Lanka's rupee closed at 315.60/80 per US$ (unchanged) while local government bond yields were mostly higher — the 15.09.2027 bond rose to 8.90/9.10% from 8.75/9.00%. Other maturities were mixed, with some flat and some rising.

An IMF team led by Sri Lanka Mission Chief Evan Papageorgiou is in Sri Lanka for combined 5th and 6th EFF reviews that could release about $700 million if completed. The mission will meet the President, ministers, the CBSL and banking officials and assess program pillars through March 2027.

Secondary bond yields edged higher across maturities (e.g., 01.05.28 at 9.65%, 01.03.30 ~9.99–10.00%, 01.10.32 at 10.70%) as selling pressure and external risks rose; Brent crude topped $115. A Rs.90 billion weekly T-Bill auction (40bn 91-day, 30bn 182-day, 20bn 364-day) is scheduled and USD/LKR closed near 315.10/316.00.

Sri Lanka's rupee weakened to 316.00/50 per US dollar from 315.60/80, while government bond yields were broadly steady (e.g. the 15.12.2029 bond quoted at 9.97/10.02%). 90,000 million rupees of Treasury bills are being issued at auction today.

DFCC Bank participated in the Ceylon Chamber of Commerce Export Acceleration Programme, warning that sharper currency movements and rising payment risk are forcing exporters to seek integrated treasury, trade services and advisory support. Panelists said exporters are pursuing growth more cautiously and restructuring transactions to secure payments.

National Development Bank PLC (NDB.N0000) was named Sri Lanka’s Best Trade Finance Bank and secured the #1 domestic ranking at the Euromoney Awards for Excellence 2026. The client-voted accolade highlights NDB's trade finance, treasury and digital capabilities supporting exporters.

Tourist arrivals to Sri Lanka fell 18.1% in the first 25 days of March 2026 to 151,693, hit by Middle East escalation and flight suspensions that disrupted key transit hubs. The decline threatens the tourism-driven foreign exchange recovery and could pressure the rupee and import financing.

Sri Lanka’s rupee weakened to 315.60/80 per US$ in the spot next market on Monday from 314.70/315.00 on Friday, while government bond yields rose — e.g. the 15.12.2029 bond at about 9.99–10.00% and the 01.06.2033 at about 11.00%.

The Central Bank of Sri Lanka was a net buyer of FX, purchasing $700m in Jan–Feb 2026 and raising gross official reserves by $500m to $7.3bn. The rupee has depreciated ~1.3% YTD (~1.6% since the Middle East conflict) and CBSL says it will only intervene to manage short-term volatility under a flexible exchange rate and inflation-targeting framework.

Secondary bond market closed the week broadly unchanged across the belly to long end after choppy trading driven by the Middle East conflict and oil-price swings, while the very short end rose modestly. Weekly T-Bill yields increased (91d 7.64%, 182d 7.95%, 364d 8.32%), foreign holdings saw a net outflow of Rs.8.68bn and USD/LKR weakened to about 315.

Sri Lanka's rupee weakened to 314.75/315.25 against the US dollar and government bond yields opened slightly higher (2029 at 9.95/10.00%, 2030 ~10.00/10.03%, 2031 10.05/10.15%). The All Share Price Index was down 1.00% at 21,162.94.

Central Bank Governor Nandalal Weerasinghe said Sri Lanka’s recent low inflation and an 11-month period of deflation were beneficial, noting the economy still grew 5% and private credit turned positive from June 2023 after surrender-rule easing and rupee appreciation.

Sri Lanka Customs exceeded its March revenue target, collecting 184.8 billion rupees by day 26 (2.4% above the 180.4 billion target). This is the third straight month of over-performance as faster container clearance and tighter enforcement have boosted import-related collections and state revenue.

Sri Lanka's rupee weakened to 314.70/315.00 against the US dollar on Friday, while government bond yields were broadly steady, with key maturities trading around 9.25% (15.12.2026) to 10.75% (01.06.2033).

Secondary Treasury bond yields rose, with mid-to-long maturities trading around 9.55%–11.00% and total secondary volume at Rs.37.60bn. Net liquidity surplus was Rs.247.29bn as the CB drained Rs.100bn via overnight repo; USD/LKR closed 314.30/314.70 and Brent rebounded above $104/bbl.

Sri Lanka's rupee weakened to 314.50/80 per US dollar, while government bond yields edged lower (e.g. the 15.06.2029 quoted near 9.70–9.80%). The Colombo ASPI fell 0.78% to 21,586.56 and the S&P SL20 was down 0.45% at 6,062.83.

Sri Lanka's rupee weakened to 314.30/70 per US dollar and local government bond yields rose across maturities; the 15.02.2028 bond closed at 9.45–9.55% and the 01.06.2033 bond at 10.85–10.95%.

Sri Lanka's rupee weakened to 313.90/314.25 per USD and bond yields opened higher (e.g. 15.09.2029 at 9.75/85% and 01.06.2033 at 10.90/11.00%); the ASPI fell 1.32% to 21,580.25.

Central Bank Governor Nandalal Weerasinghe said imposing forex or trade controls is not the right response to Middle East conflict fallout, with the central bank keeping interest rates on hold and the government raising fuel prices to balance external and domestic demand. He added remittances remain strong, tourism is down, and the CB is using repo operations to mop up excess liquidity while warning that permanent sterilization is needed to avoid excess imports and pressure on the rupee.

The Central Bank of Sri Lanka held the policy rate at 7.75% and said gross official reserves stand at $7.3bn, providing buffers against external shocks. It projects headline inflation around 2% in March and expects inflation to converge to the 5% target by Q2 2026, while warning risks from Middle East energy volatility could change the outlook.

CBSL Governor said the IMF mission (26 Mar–9 Apr) may seek a staff-level agreement to combine the Fifth and Sixth reviews of Sri Lanka’s $2.9bn EFF, potentially unlocking about $700m, and that recent external shocks (Middle East conflict, energy prices) could require significant program adjustments. He noted gross official reserves of $7.3bn and that detailed discussions on external sector and targets are pending.

The Central Bank held the OPR at 7.75% in its 2nd MPC review for 2026, leaving SDFR/SLFR and reserve requirements unchanged. Weekly T‑bill yields rose (91d 7.64%, 182d 7.95%, 364d 8.32%) in an undersubscribed auction; secondary bond market volatile and the rupee firmed slightly to ~Rs.313.8/314.5 with gross official reserves at $7.3bn.

February tea exports fell to 19.92 M/Kgs (down 0.48 M/Kgs YoY), but Jan–Feb shipments rose to 40.63 M/Kgs (up 0.86 M/Kgs) and cumulative FOB increased to Rs. 1,804.08/kg ($5.83), supported by stronger rupee returns even as dollar earnings weakened.

Sri Lanka's Central Bank said it will stick to a flexible exchange rate, intervening only to manage excess day-to-day FX volatility, and has bought about US$700 million in the first two months to bolster reserves.

Central Bank Governor Nandalal Weerasinghe warned IMF programme conditions may change significantly at the upcoming fifth/sixth reviews as IMF staff visit Colombo Mar 26–Apr 9, citing Cyclone Ditwah and a >35% jump in energy prices that raised reconstruction costs and inflationary pressure. Completion of the combined reviews would unlock about US$700m in IMF tranches.