News & market updates

Sri Lanka sold all Rs140bn of Treasury bills at Wednesday's auction; 3-month yield fell 18bp to 9.95%, 6-month fell 3bp to 10.24%, and 12-month was unchanged at 10.20%.

Sri Lanka's total exports reached an estimated US$ 9,012.24 Mn in Jan–Jun 2026, up 8% y/y; merchandise exports were US$ 7,073.31 Mn (+8.95%) and services US$ 1,938.94 Mn (+4.49%). Electrical & electronic components, rubber, food & beverages and spices recorded strong gains in June, while apparel exports fell 11.74% y/y.

Cabinet approved forming a multi-agency committee to recommend transferring around 60 roads from Provincial Councils and local authorities to the Road Development Authority for urgent rehabilitation. The panel will study legal, administrative and institutional arrangements and includes representatives from relevant ministries, the RDA and provincial bodies.

Cabinet approved replacing the planned purchase of 600 standard SLTB buses with air-conditioned deluxe buses, increasing the project cost to Rs.21.6bn (additional Rs.7.2bn; Rs.1.8bn in 2026, Rs.5.4bn in 2027–28). The buses will operate on intercity and long-distance routes under the Road Safety Plan.

Mercantile Investments & Finance PLC (MERC.N0000) completed an oversubscribed Rs. 1.1 billion rights issue, bolstering its capital base and regulatory capital position. The funds increase its financial flexibility to support growth and expansion in Sri Lanka's financial services sector.

Union Bank appointed its CEO Dilshan Rodrigo to the board of LankaPay, Sri Lanka's National Payment Network. He will contribute to strengthening the national payments infrastructure and advancing secure, efficient digital payment solutions.

Mercantile Investments & Finance PLC (MERC.N0000) completed an oversubscribed rights issue raising Rs. 1.1 billion. The funds bolster its capital base and regulatory capital position, enhancing financial flexibility to support growth and expansion in its financial services operations.

Phoenix Miras Ltd. has committed to invest in a Grade-A office development, Colombo Gateway, on Plot 1-01-04 in Port City Colombo. CHEC Port City Colombo said the project reinforces investor confidence and aims to create a premier commercial address within Port City.

Labour Minister Dr. Anil Jayantha said the government has not decided to merge or privatise the EPF and ETF and that a Cabinet paper only seeks a committee review to improve administration. The review will focus on data integration, governance, investment safety and speeding up payments.

World Bank lead economist Dr. Harsha Aturupane warned Sri Lanka must reverse anti-export policies and reconnect with global markets to restore innovation and competitiveness. He cautioned ICT/BPM faces disruption from AI and noted low global value-chain participation (8.1% vs 26% India, 34% Vietnam).

Hayleys PLC's subsidiary Sri Lanka Shipping Company Ltd. won a $17.16m contract to lease two 70-ton tug vessels to the Sri Lanka Ports Authority for five years. The award followed Cabinet approval and an international competitive bidding process (amount excludes taxes and duties).

Sri Lanka's NCPI inflation rose to 6.5% year-on-year in June, up from 5.4% in May, driven mainly by higher food prices. Food inflation climbed to 3.3%, core inflation to 5.0%, and monthly NCPI increased 1.6% to 222.3 points.

CA Sri Lanka published a white paper urging urgent tax and investment reforms to boost FDI, proposing measures like a Qualified Domestic Minimum Top-Up Tax, refundable tax credits, targeted spend-based incentives and APA improvements. The paper prioritises tech/digital, renewable energy, export manufacturing and regional HQs and calls for institutional capacity to implement OECD-GMT–aligned reforms.

Secondary government bond yields rose ahead of the Monetary Policy announcement, with maturities trading roughly between 10.70% and 12.25%; a Rs.140bn T‑Bill auction (Rs.60bn 91d, Rs.50bn 182d, Rs.30bn 364d) is scheduled today. Money-market surplus was Rs.142.36bn and USD/LKR closed near 336.35/336.50.

The Central Bank kept the overnight policy rate unchanged at 8.75%, and the Colombo Stock Exchange All Share Price Index rose 0.39% to 21,228.39. Brokers noted a flow of funds from equities to fixed-income instruments amid higher interest rates; turnover was 2.7 billion rupees.

Sri Lanka rupee quoted at 336.50/75 to the US dollar in the spot market (from 336.35/50), while bond yields were broadly steady and Rs.140,000 million of Treasury bills are to be issued at auction. Government bond quotes were around 11.20–12.15%, with small moves on a few maturities.

Hayleys PLC (via Hayleys Agriculture) opened Sri Lanka's first frozen concentrated coconut water manufacturing facility to produce premium concentrated coconut water for export. The investment is aimed at boosting value-added agricultural exports and supporting local coconut growers.

Central Bank kept the Overnight Policy Rate unchanged at 8.75%. Headline inflation rose to 6.8% in June, with higher fuel prices and Middle East tensions posing upside risks; gross official reserves were USD 6.45bn and the rupee has stabilised.

Asian stocks rose, led by a rebound in semiconductor shares as MSCI's Asia-Pacific ex-Japan index gained 1.2% and South Korea's Kospi jumped over 6%. Brent crude nudged to $91.55/bbl and markets are focused on upcoming US earnings and central bank meetings.

Oil prices rose as U.S. strikes on Iran and regional drone attacks raised fears of supply disruptions; Brent was $91.51 and WTI $84.64, with official EIA inventory data due.

The Central Bank of Sri Lanka kept the Overnight Policy Rate (OPR) unchanged at 8.75%. Headline inflation accelerated to 6.8% y/y in June 2026 driven by higher energy and food prices; gross official reserves were USD 6.45bn and the rupee has stabilised.

Rockland Group will hold the grand finale of the 6th Annual Bar Champs on 27 July at Shangri‑La Colombo, with nine semi‑finalists advancing after regional workshops and a Rockland-hosted bootcamp. The programme trained over 240 participants, including a record 67 female competitors, with masterclasses from Smoke and Bitters.

Charcoal Tandoor Fire & Grill has opened in Colombo, drawing attention for its open kitchen and tandoor-focused North Indian menu. The restaurant's bespoke interiors — high ceilings, Jali screens, copper vessels and spice displays — tie the dining experience to regional culinary heritage.

Toastmasters District 82, Division I held its Club Officer Training Programme (COTP) and COOL on 18 July 2026 at MAS Athena, Thulhiriya to train club officers, install Area Directors and introduce the Division I leadership team for 2026/2027.

Seylan Bank (SEYB.N0000) has partnered with John Keells CG Auto to offer dedicated NEV leasing for BYD and DENZA, with up to seven-year repayment terms, 24-hour lease approvals and a 50% concession on document processing fees.

Colombo Stock Exchange closed up 0.02% as the ASPI rose 3.83 points to 21,149.56; top positives included Seylan Bank (98.90) and PickMe, while John Keells (19.60), Hayleys (227.00) and Access Engineering (74.90) were the main detractors.

NDB Wealth marked its 34th anniversary with a client engagement event in Kandy focusing on family business succession and the investment implications of Middle East geopolitical tensions; NDB Wealth is part of the NDB group.