News & market updates

Abans Finance PLC received CSE in-principle approval to list up to 15 million five-year debentures worth a maximum of Rs. 1.5 billion; Type A pays fixed 12.50% p.a. and Type B floats at AWPLR+2%. NDB Investment Bank is appointed manager to the issue.

Secondary bond yields held broadly steady with key maturities trading between 8.40% (01.08.26) and 11.00% (01.11.33); a Rs.110 billion Treasury Bill auction (Rs.45bn 91-day, Rs.35bn 182-day, Rs.30bn 364-day) is due today. USD/LKR closed at 316.50/316.75 and net liquidity surplus stood at Rs.123.32bn.

Sri Lanka's Public Debt Management Office (PDMO) won 'Debt Management Office of the Year (Asia‑Pacific)' at the Commonwealth awards on 26 March. The award follows PDMO reforms since 2024 — including consolidation under the Public Debt Management Act, publishing medium‑term debt strategy, and taking over domestic government securities auctions — aimed at improving transparency and debt-management practices.

DFCC Bank convened a discussion examining how the Middle East conflict could transmit into Sri Lanka’s economy, highlighting energy price, shipping, FX, tourism and remittance channels. The forum emphasised banks’ role in helping clients manage FX exposure, trade finance and liquidity amid rising uncertainty.

National Consumer Price Index inflation rose to 2.4% in March 2026 from 1.6% in February; food inflation eased to 0.7% while non-food year-on-year inflation rose to 3.8% from 1.9%.

The Central Bank's Annual Economic Review 2025 reports real GDP growth of 5% and continued macroeconomic stabilization, with a third consecutive current-account surplus and reserve build-up. Monetary policy remained accommodative supporting low interest rates, credit expansion and improved bank/non-bank profitability, while exchange-rate flexibility and easing capital controls were noted.

Rupee quoted at 316.40/80 per USD on Apr 21, slightly weaker than 316.30/70 the prior day, while government bond yields nudged up on shorter tenors and stayed steady on the long end (e.g. 01.07.2028 at 9.60/9.70%, 15.10.2029 at 9.95/10.05%).

Transport Minister Bimal Rathnayake said Central Expressway Phase III is progressing, with the Pothuhera–Rambukkana stretch about 75% complete by March and a ~Rs.2 trillion public infrastructure pipeline planned for 2026–2028. Analysts warn rising input costs, tight financing and potential energy shocks could pressure timelines and margins, especially for smaller contractors.

Secondary bond yields held broadly steady, with total secondary Treasury bond/bill turnover of Rs. 9.50 billion on 17 April. Money markets recorded a net liquidity surplus of Rs. 112.44 billion, SDFR deposits of Rs. 138.44 billion at 7.25%, overnight rates ~7.67–7.70% and USD/LKR ~316.40/316.90.

U.S. stocks retreated as Mideast tensions sent oil up about 5% to $88.21/bbl (Brent $94.86), while 10-year Treasury yields ticked higher and the dollar eased.

Hatton National Bank (HNB) was ranked the best-performing bank in Category 1 by K Seeds Investments for the year ended 2025. The ranking used nine financial KPIs and comes as Sri Lanka's banking sector benefited from lower inflation, steadier rates and exchange-rate stability in 2025.

Sri Lanka's rupee closed at 316.30/70 per US$ (flat) and government bond yields were broadly steady on Apr 20, 2026; e.g., 15.12.2026 at 8.45–8.55% and 01.07.2030 at 10.15–10.20% (slightly down).

Fitch said the risk outlook for global credit has risen “substantially”, citing the US war on Iran and a possible sustained oil and gas supply shock that raises commodity and energy price assumptions. It also kept Sri Lanka at 'CCC+', constrained by high government debt and interest/revenue ratios despite reform progress.

Sri Lanka's rupee was quoted at 316.40/80 to the US dollar, slightly weaker, while government bond yields were largely steady (e.g. 01.05.2027 at 8.75/85%). The All Share Price Index fell 0.72% to 22,609.71 and the S&P SL20 fell 0.58% to 6,227.77.

Secondary bond market ended the week steady to marginally lower with notable yield compression in the 2029–2034 tenors. T-bill weighted average yields rose (91d 8.15%, 182d 8.22%, 364d 8.52%) amid an undersubscribed auction; foreign holdings saw a Rs.2m net inflow and USD/LKR closed at 316.55/316.70.

Deloitte Sri Lanka launched the Non-Bank Financial Institutions Sector Compensation and Benefits Survey 2025, presenting compensation benchmarks and survey-based workforce insights for NBFIs. The report notes sector stabilisation amid interest-rate normalisation and flags talent shortages, regulatory complexity and rising demand for digital/AI skills.

Sri Lanka's rupee closed weaker at 316.50/70 to the US dollar, from 315.85/316.10, while government bond yields edged up slightly across maturities (e.g. 2028 yield to 9.65/75% from 9.50/65%).

Sri Lanka sold Rs25,522 million of Treasury bills on tap at average rates of 8.15% (3-month) and 8.52% (12-month), bringing total bills sold last week to Rs84 billion; settlement is April 17.

Sri Lanka's rupee weakened to 316.05/15 per US dollar on Friday from 315.85/316.10 the previous day; bond yields were largely steady (e.g. 15.09.2029 quoted at 9.95/10.00%). The All Share Price Index rose 0.52% to 22,706.93 and the S&P SL20 gained 0.62% to 6,269.62.

IMF/WEO: a Middle East war-driven energy shock is raising inflation and weakening external balances in Asia; the region is projected to grow 4.4% in 2026 and 4.2% in 2027 (from 5% in 2025) under the reference forecast. Higher energy costs hit refiners, utilities, manufacturers and tourism, tightening policy space; adverse/severe scenarios could cut cumulative growth by 1–2 percentage points and lift inflation further.

Sri Lanka’s debt restructuring is nearly complete, the GSDR reported, with seven of 17 bilateral official creditor deals signed and remaining commercial creditors representing about 1.7% of the restructuring perimeter. The IMF provided Rapid Financing Instrument support in Dec 2025 and the World Bank repurposed up to US$120m for cyclone relief.

Sri Lanka’s rupee closed weaker at 315.85/316.10 per US$ on Apr 16 (from 315.55/315.65), while government bond yields mostly fell — e.g. the 01.07.2030 bond at 10.10/10.13% (down from 10.15/10.17%) and the 15.06.2034 bond at 11.05/11.12% (down from 11.12/11.17%).

GSDR co-chairs (IMF MD Kristalina Georgieva, World Bank President Ajay Banga, and US Acting Under Secretary Francis Brooke) issued an updated Restructuring Playbook and an LMO Manual to guide country authorities on sovereign debt restructuring and liability management.

Sri Lanka's rupee traded at 315.45/75 to the US dollar and government bond yields eased, with the 15.06.2029 quoted at 9.82/88% (down from 9.85/95%). The ASPI rose 0.62% as global markets rallied on diplomatic optimism and softer oil prices.

IMF MD Kristalina Georgieva warned policymakers must balance fiscal sustainability with protecting the most vulnerable as West Asia war shocks push up energy prices and slow global growth, and the IMF anticipates $20–50 billion in near-term demand for financial support.

Sri Lanka's rupee closed at 315.55/65 per USD and bond yields were steady; the 15.06.2029 bond closed at 9.85/95%, 15.09.2029 at 9.90/10.00%, 01.07.2030 at 10.15/17% and 15.06.2034 at 11.12/17%.

Sri Lanka Treasury bill yields rose at the Apr 15 auction: 3‑month up 20bps to 8.15%, 6‑month up 8bps to 8.22% and 12‑month up 7bps to 8.52%; 58.52 billion rupees were sold of 90 billion offered.

The G-24 warned that rising global risks — including geopolitical tensions, higher energy prices, elevated inflation and tighter financing — threaten fragile recoveries in economies like Sri Lanka. The group urged more concessional finance, faster debt restructuring and stronger multilateral support.

Fitch says a steep rise in global energy prices has started to show up in March inflation data and has lifted government bond yields as markets price potential fiscal and monetary responses.

IMF cut its global growth outlook and warned the world is drifting toward a more adverse scenario, saying an adverse path could keep oil near $100/barrel and trim global growth to about 2.5%. It presented three scenarios (reference, adverse, severe) with the severe case pushing oil to $110–$125 and global growth to 2.0%.