News & market updates

91-day Treasury bill yield fell 18bp to 9.95% at the weekly auction as the full Rs.140 billion offered was raised. Money market liquidity rose to Rs.175.20bn and USD/LKR closed about 336.25/336.35.

Delmege Insurance Brokers warns Sri Lankan directors face rising personal liability in 2026 from the PDPA, Companies Act obligations and cyber threats, and recommends Directors' & Officers' and Cyber insurance to protect boards and cover legal defence costs.

Chrysalis' Climate Resilience Revolving Fund (CRRF) delivered recovery loans within 3–10 days after Cyclone Ditwah, which caused an estimated Rs.50–85bn in damage to MSMEs; stakeholders agreed to pursue a national blended-finance scale-up and form a technical working group.

Sri Lanka's services exports rose 3.75% year-on-year to $344.52m in June 2026, led by ICT/BPM (+11.31% to $150.49m) and financial services (+29.56% to $3.21m); construction fell 26.14% and transport and logistics dipped 0.79%.

Sri Lanka's merchandise exports rose 15.09% to US$1,314.10mn in June 2026, led by electrical & electronic components (exports up over four-fold), boat building and petroleum products. Cumulative Jan–Jun exports rose 8.95% to US$7,073.31mn, while tea, coconut and apparel exports declined.

Hatton National Bank (HNB) says sustainability is a core strategic imperative, citing its successful Rs. 10 billion Sustainability Bond issuance and its decision to exclude coal financing. The bank urged board-level governance, better climate data and alignment with CBSL’s Sustainable Finance Roadmap 2.0 and the SLSBI to integrate sustainability across Sri Lankan banks.

South Asia Gateway Terminals (SAGT) has reduced GHG emissions intensity by 21% versus its 2019/20 baseline and has recorded annual throughputs above 2 million TEUs in 2018, 2019 and 2024. Key measures include hybridising 28 of 31 RTG cranes (≈58% less diesel per move) and a 460 kW rooftop solar PV system generating 44,000 kWh/month.

Hayleys PLC's transportation and logistics arm Advantis has embedded an ESG strategy (HELIOS) across its operations and launched Advantis Blue C and Advantis Green C ecosystem restoration programmes, including mangrove projects and an MoU with Horana Plantations.

CA Sri Lanka is adopting and localising the ISSB's IFRS S1 and S2 as SLFRS S1/S2 and has launched a Preparers' Guide, a Sustainability Governance Code for finance professionals and a CSRSA qualification to strengthen sustainability reporting and governance across the economy.

CA Sri Lanka president Tishan Subasinghe says the institute is promoting sustainability reporting — including a Preparers' Guide to SLFRS S1 & S2 and the CSRSA qualification — to improve corporate transparency, resilience and Sri Lanka's international competitiveness.

First Capital Holdings PLC (a JXG subsidiary) achieved multiple sustainability firsts in FY2025/26, becoming the first investment institution globally to receive the SSCI Certificate of Acceptance and Sri Lanka's first investment institution to join UNGC, WEP and PCAF. The firm also joined PRI, verified its carbon emissions and is embedding ESG and SLFRS S1/S2 readiness into governance and investment processes.

Strong corporate governance reduces perceived investor risk and the cost of capital, helping attract longer-term investment and producing steadier share prices and lower borrowing costs.

Ceylinco Life (Ceylinco Holdings PLC) had 32 green branch buildings by end-2025 that generated ~1.12 GWh of solar energy, harvested 3.08M litres of rainwater and recycled 1.386M litres of water. The company says it has embedded ESG across investments, operations and products and plans to expand renewables and green branches.

L B Finance (LFIN.N0000) launched ESG Roadmap 2.0 with targets to 2030, earned an AAA ESG Rating and reported 4,018 tonnes of independently verified avoided CO2 from its vehicle and solar financing in 2025/26.

Companies can cut carbon footprints and reduce energy costs with low-cost steps — upgrading equipment, switching to renewables, optimizing transport, working with suppliers, reducing waste and measuring emissions to find savings.

Hemas Holdings (HHL.N0000) says it has recovered 2.9 million kg of plastic by end-FY2025/26 as part of its Environmental Agenda 2030, pursuing plastic neutrality by 2030 while improving water efficiency, expanding renewables and scaling social/health initiatives.

Manufacturers are increasingly adopting circular-economy practices—repair, reuse and recycling—to cut costs, reduce exposure to volatile material prices and meet tightening regulation. Design changes and product-as-a-service models help capture value but require upfront investment and new collection/refurbishment systems.

Consumers increasingly expect ethical, transparent supply chains across clothing, food and electronics, valuing honesty and evidence of remediation over perfection. Companies face reputational and regulatory risk from false claims and must audit and monitor suppliers rather than rely on one-off checks.

Seylan Bank (SEYB.N0000) is approaching the opening of its 300th 'Pahasara' library, a decade-old ESG programme that builds and refurbishes school libraries while providing digital learning, financial literacy and community engagement initiatives.

Hambantota International Port Group's CEO says HIPG has integrated ESG into its core operations, citing community rebuilding, the Save Ali Pancha elephant programme and coral-research partnerships. He highlights alignment with CMPort's ESG philosophy and upcoming coral research presentations.

Adopting circular economy practices can turn Sri Lanka's municipal, agricultural and industrial waste into economic value through recycling, reuse, and waste-to-energy, improving resource efficiency and creating jobs. Opportunities span manufacturing, construction, agriculture, packaging/retail, and digital technologies for material tracking and financing.

Citizens Development Business Finance PLC (CDB) has joined the Partnership for Carbon Accounting Financials (PCAF), committing to measure and disclose GHG emissions of its lending and investment portfolios as part of a 700+ institution network. CDB says this aligns it with global disclosure standards and helps set climate targets including alignment with SLFRS S2.

Employee wellbeing has moved from a perk to a strategic advantage, with firms that invest in it reporting lower turnover, fewer sick days and improved performance. Effective programmes require manager training, realistic workloads and policies that are actually implemented.

Sri Lankan businesses are increasingly treating diversity, equity and inclusion (DEI) as a strategic driver of innovation, employee retention and investor confidence. Inclusive policies, transparent reporting and supply-chain labour standards are highlighted as ways to boost competitiveness and attract responsible investment.

Hayleys Fabric PLC won the Climate Action Award at the 3rd Global ESG & Sustainability Conference & Awards 2026 in Kuala Lumpur, recognising its measurable climate action including SBTi-validated Net Zero targets, renewable energy investments and decarbonisation initiatives.

Hayleys Plantations launched 'Regenerate', a unified ESG roadmap joining Talawakelle (TPL), Kelani Valley (KVAL) and Horana (HOPL) across 55 estates and ~14,000 ha with 2030 targets including a 42% reduction in Scope 1–3 emissions and 95% renewable-energy reliance. The plan also targets 90% regenerative agriculture, zero deforestation, 100% supplier ESG screening and digital/AI monitoring.

Sri Lankan corporate boards were urged at the Sri Lanka Corporate Director Summit to shift from monitoring results to anticipating change, strengthen crisis management and AI literacy, and ensure independent directors provide genuine scrutiny.

Colombo Stock Exchange ASPI rose 0.24% (up 49.81 points) to 21,199.37 on Thursday, with market turnover at Rs 1.078 billion and capital goods leading turnover at Rs 317.4 million. Top positive contributors included HNB, Carson Cumberbatch, Ceylinco Holdings and NDB, while Melstacorp and Hayleys were negative contributors.

Western Provincial Ministry of Education and the Mosvold Martinus Foundation signed an MoU to launch an Early Childhood Education programme that will support 500 preschool teachers to obtain diplomas and train 1,000 more in play-based learning. The programme will also provide age-appropriate materials, establish two model ECE centres and run parental awareness initiatives.

HUTCH Sri Lanka ran the 'HUTCH DANSADA' Poson Moon Scan promo inviting users to scan the full moon with their phones to receive assured instant digital rewards; thousands of customers participated nationwide.