News & market updates

Tourism Minister Vijitha Herath said tourism earnings have not fallen and that a revised SLTDA methodology lowered the estimated average per-day tourist spend from $171 to $148. Sri Lanka posted a record 2.36m arrivals in 2025 while tourism income rose 1.6% YoY to $3.2bn, with an SLTDA study estimating $1.13bn in annual leakages.

Secondary bond market yields rose further, with near-term maturities around 8.99%-9.05% and longer-dated yields climbing into the 10.5%-10.9% range (e.g. 01.07.37 at 10.88%-10.90%). Net liquidity surplus was Rs.283.22bn, the CB drained Rs.30bn via overnight repo, and USD/LKR closed at Rs.309.30/309.35.

IMF Managing Director Kristalina Georgieva called Sri Lanka's performance under the current IMF Extended Fund Facility a 'success story' and praised the Central Bank of Sri Lanka for restoring macroeconomic stability. She noted IMF support for debt restructuring and technical assistance and said higher growth is possible with sustained structural reforms.

IMF Managing Director Kristalina Georgieva said Sri Lanka has made "tremendous progress" with macro stability restored, inflation sharply down and growth returning. She urged sustained reforms, stronger FX reserves and prudent fiscal policy, noted over $200m in IMF emergency aid and that debt restructuring is nearing completion.

President Anura Kumara Dissanayake said UK Deputy PM David Lammy's visit reinforces international confidence and welcomed the UK's decision to grant zero-tariff access for Sri Lankan textile exports. He flagged tourism, exports and FDI as priority areas, urged sustained forex inflows and outlined post-Cyclone Ditwah reconstruction measures.

Secondary bond market traded at prevailing levels with yields from 8.10% (01.08.26) up to 10.92% (15.08.39); a Rs.60 billion Treasury Bill auction (Rs.10bn 91-day, Rs.35bn 182-day, Rs.15bn 364-day) is on offer, below maturing volume of ~Rs.67.21bn. Money-market net liquidity surplus was Rs.270.41bn and USD/LKR closed around 309.40/309.50.

IMF Managing Director Kristalina Georgieva called Sri Lanka’s IMF programme a "success story" after meeting Central Bank Governor Nandalal Weerasinghe on 17 Feb, praising progress under the EFF, debt restructuring and macroeconomic stabilization while urging sustained reforms.

Secondary bond market yields largely held steady on 13 Feb with selected tenors edging up and total secondary Treasury Bond/Bill traded volume at Rs. 25.81 billion. Net liquidity surplus was Rs. 270.99 billion, overnight rates around 7.67%-7.68%, and USD/LKR closed stable at 309.20/309.25.

Gross official reserves fell marginally to $6.82 billion at end-January, down 0.15% month-on-month. Gold reserves rose 26% to $109 million and 12-month short-term outflows are estimated at $3.92 billion.

Foreign holdings of rupee Treasuries rose by Rs.9.21bn to top Rs.160bn, a near 36‑month high. Interbank liquidity hit Rs.299.68bn (an 11‑year high), T‑bill/T‑bond auction yields fell and secondary yields trended lower; USD/LKR closed around Rs.309.20.

IMF Managing Director Kristalina Georgieva will visit Sri Lanka from Feb 16–18, 2026 to meet government officials, assess Cyclone Ditwah damage, and discuss IMF support for recovery and resilience efforts.

The Central Bank of Sri Lanka warned that all transactions between residents must be conducted in Sri Lankan Rupees and that it has not authorised merchants to accept or convert payments into foreign currency; breaches may incur fines up to Rs. 25 million and/or up to three years' imprisonment.

Public Debt Management Office raised the full Rs. 51 billion on offer across two maturities, issued at weighted average yields of 9.52% (01.03.30) and 10.73% (15.08.36) as secondary bond yields fell amid an elevated liquidity surplus of Rs. 296.71 billion. The USD/LKR closed around Rs. 309.30/309.37 and secondary bond turnover was Rs. 32.71 billion.

Central Bank of Sri Lanka clarified that all transactions between residents must be in Sri Lankan Rupees and that it has not authorized merchants to accept or convert payments into foreign currency, with penalties up to Rs25,000,000 and/or up to three years' imprisonment. The instruction explicitly covers payments via credit/debit cards.

Net money market liquidity surged to Rs. 296.45 billion, with a Rs. 90 billion T-bill auction fully subscribed and yields declining for the fourth straight week. Secondary bond yields fell ahead of a Rs. 51 billion Treasury Bond auction, while USD/LKR closed at 309.35/309.40.

Sri Lanka Navy earned USD 598,250 in foreign exchange over four months by independently facilitating Onboard Security Team (OBST) operations, with all proceeds credited to the Government Consolidated Fund. Between 03 Oct 25 and 08 Feb 26 the Navy conducted 323 maritime security operations under a Cabinet decision and a Presidential Order.

Fitch assigned Aitken Spence Hotel Holdings PLC a first-time National Long-Term Rating of AA+(lka) with a Stable Outlook. Fitch cited strong parent support from Aitken Spence PLC and Melstacorp, but flagged high exposure to the Maldivian economy and rated proposed senior unsecured debentures AA(lka) up to Rs.5bn.

Secondary bond market remained bullish as yields fell across the curve with strong demand in 2029–2037 tenors (long-end yields around 10.95%). A weekly T-bill auction offers Rs.90bn (Rs.20bn 91-day, Rs.50bn 182-day, Rs.20bn 364-day); net liquidity surplus Rs.282.22bn; USD/LKR ~309.40/309.45.

The Sri Lankan Government will hold an investor call tomorrow (11 Feb 2026) on Macro-Linked Bonds and Governance-Linked Bonds, presenting the 31 Dec 2025 Debt Report and updates on fiscal, macroeconomic and governance developments tied to the bonds' performance metrics.

Secondary bond market yields continued to trend lower, with robust activity and total secondary Treasury bond/bill volume of Rs.21.25 billion on 6 Feb; several belly-to-long maturities fell (e.g., 15.03.31 at 9.88%). Money-market liquidity surplus was Rs.278.20 billion and USD/LKR closed at 309.43/309.50.

Tokyo Cement reported 3Q turnover of Rs.14,523m (vs Rs.11,639m) and profit after tax of Rs.332m (vs Rs.1,006m), citing volume growth but lower selling prices, higher input and currency costs and capitalisation of expansion and a vessel; expects demand lift from reconstruction and infrastructure spending.

Tokyo Cement Group reported Q3 turnover of Rs.14,523 million (25% YoY) and PAT of Rs.332 million (down from Rs.1,006 million YoY), citing volume growth but pressure from lower selling prices, higher raw material and currency costs, and capitalisation of expansion and a vessel; expects demand support from post-cyclone reconstruction and planned government capex.

Worker remittances to Sri Lanka reached USD 8.076 billion in 2025, a 22.8% rise from USD 6.6 billion in 2024. The increase is linked to higher departures and more skilled migrants (top sources: Kuwait, UAE, Saudi Arabia), while studies flag migrant hardships and call for stronger protections for female workers.

Sri Lanka's official reserve assets fell 0.2% in January 2026 to USD 6,824m (from USD 6,838m); foreign exchange reserves declined 1% to USD 6,680m while gold holdings rose 26.8% to USD 109m. Reserves include about USD 1.4bn of FX swap proceeds from China's People's Bank, subject to conditions.

Hemas Holdings reported nine-month earnings up 7.5% to Rs. 5.9 billion on revenue growth of 9.4% to Rs. 95.8 billion, led by double-digit growth in Healthcare and Mobility; Cyclone Ditwah caused temporary supply-chain and demand disruption but recovery trends are evident.

The SEC and Colombo Stock Exchange held an investor forum in Riyadh and met Saudi PIF to promote Sri Lanka's capital market after exiting sovereign default and restoring macro stability. Speakers highlighted ASPI >23,800 (≈120% since Oct 2024), projected reserves of USD 8bn, and a move to market-driven interest rates and a flexible exchange rate.

Sri Lanka Customs collected Rs.232.55 billion in January, beating the Rs.160.2 billion target by Rs.72.35 billion (45%). Officials attributed the surge to higher import volumes, favourable currency movements and tighter enforcement; the 2025 Customs target is Rs.2,207 billion, down 13.5% amid expected vehicle import declines.

India raised budgetary assistance to Sri Lanka to INR 4 billion for 2026-27 (about $43.6m), up from INR 3 billion in the revised 2025-26 estimates, a roughly 33% year-on-year increase.

The CBSL was a net buyer of $1.99 billion of foreign exchange in 2025, injecting about Rs. 788.9 billion into the rupee money market and raising gross official reserves to $6.8 billion. Liquidity remained in surplus all year, short-term rates moved above the policy rate mid-2025 before realigning by Jan 2026, and the CBSL did not conduct OMOs.

Sri Lanka's current account reached a $1.7 billion surplus in 2025, up 43.8% YoY, driven by record workers' remittances and stronger services inflows despite a wider trade deficit. Vehicle imports totaled $2.05 billion in 2025, tourist earnings fell and gross official reserves stood at about $6.8 billion while the rupee depreciated 5.6% YTD.