News & market updates

Sri Lanka’s rupee closed at 309.95/310.05 to the US dollar, weaker than Friday’s 309.75/309.85, while government bond yields were slightly higher (e.g. 15.12.2026 ~8.50/60%, 01.11.2033 ~10.50/52%).

Sri Lanka's rupee depreciated 5.6% against the US dollar in 2025. Analysts say the move reflects a more flexible exchange rate, normalising import demand and external-debt outflows with the IMF warning the current account could widen by about $700m over the next 12 months.

Sri Lanka recorded around US$7.8bn in foreign remittances in 2025, the highest on record, with December estimated at about US$650–700m and surpassing 2017's US$7.16bn. Remittances have risen as the central bank ended the parallel exchange rate regime, returning flows to formal channels.

Asian stocks climbed as investors weighed U.S. intervention in Venezuela, with MSCI's Asia-Pacific ex-Japan index up 1.2% and Brent crude around $60.87. The U.S. dollar and 10-year yield rose slightly while gold gained about 1%.

Secondary government bond yields closed broadly steady week‑on‑week with a late‑week recovery concentrated in 2028–2033 maturities; weekly T‑bill yields rose for a second consecutive week (91d 7.74%, 182d 8.27%, 364d 8.45%) and T‑bill auction subscription was 47.83%.

Rupee eased to 309.85/92 per USD on Monday while government bond yields were largely steady (e.g. 15.10.2028 ~9.15%, 01.11.2033 ~10.50%). Colombo ASPI rose 0.57% to 22,993.

The Central Bank of Sri Lanka has extended the suspension of Perpetual Treasuries Limited from acting as a Primary Dealer for six months with effect from 4:30 p.m. on 05 January 2026 to allow continuation of ongoing investigations.

Hatton National Bank (HNB.N0000) was named Sri Lanka’s 'Best Bank for 2025' by The Banker and 'Strongest Bank in Sri Lanka' by The Asian Banker; HNB reported profit after tax of Rs.31.5 billion for nine months (up 42% YoY) with a Tier I ratio of 16.74%. The bank cited accelerated digital transformation, a c. Rs.350 billion loan book increase and initiatives like a bank-led cashless bus payment rollout as drivers of its resilience.

Sri Lankan authorities pledged to enforce the law against tuk-tuk gangs using violence to intimidate PickMe and Uber drivers, warning the tactics threaten the island's tourism safety brand.

Foreign investors bought about US$3.07m of Sri Lanka government securities in the week to Jan 1, taking 2025 net inflows into rupee bonds to US$234.4m, with foreign holdings near a 26-month high and it being the 13th week of buying in the last 18, Central Bank data showed.

Sri Lanka's rupee closed weaker at 309.75/85 per US$ (from 309.45/60), while government bond yields were slightly lower — e.g. the 15.02.2028 bond at 9.00/05% and the 01.11.2033 bond at 10.45/55%.

Sri Lanka sold Rs1,000 million of 12-month Treasury bills on tap at an average yield of 8.45%, bringing total bills raised this week to Rs58.39 billion; settlement date is Jan 2.

Sri Lanka sold Rs2,500 million of Treasury bonds on tap at a weighted average yield of 10.90% for the 01 July 2037 bond, taking weekly bond sales to Rs45.68 billion. Total market subscription was Rs3,416 million and settlement was on January 1.

Sri Lanka's rupee weakened to 309.75/85 per USD from 309.45/60, while government bond yields edged lower as yields continued recovering for a second day. On the Colombo Stock Exchange, the ASPI rose 0.81% to 22,806 and the S&P SL20 gained 0.52% to 6,189.

Secondary Treasury bond yields fell on the belly of the curve (2028–2032), with key tenors trading between 9.15%–10.40% and total secondary Treasury turnover of Rs.26.40bn on 31 Dec. Net liquidity surplus was Rs.128.14bn at the Central Bank SDFR (7.25%), call/repo averaged 8.04%/8.05%, and USD/LKR spot closed at 309.45/309.60.

Sri Lanka's total imports fell to US$1,779m in November 2025 from US$2,157m in October; personal vehicle imports rose to US$227.6m in November and reached US$1,365.8m year-to-date by November. Car sales plunged in December after Cyclone Ditwah and the central bank tightened loan-to-value ratios.

Sri Lanka's rupee closed at 309.45/60 per US$, essentially flat from 309.50/60, while government bond yields mostly fell (for example, the 15.02.2028 bond moved to 9.00/10%). Yields on several other maturities declined, though the 01.10.2032 issue rose slightly to 10.32/40%.

Sri Lanka posted an $82m current account surplus in Nov 2025 while the rupee fell to 308.03/dollar. Imports fell to $1,778m from $2,156.8m in October, and analysts warned that flaws in the flexible exchange-rate regime are driving rapid depreciation that could undermine public and state-enterprise finances.

Sri Lanka's rupee opened stronger at 309.25/70 to the US dollar (from 309.50/60 a day earlier); bond yields were broadly steady, with a 01.05.2028 bond quoted at 9.15/20% and bill and bond yields having risen over the past week. The government has announced relief payments to be funded from a domestic buffer.

Headline inflation (CCPI YoY) remained steady at 2.1% in December 2025, unchanged from October and November, the CBSL said. Month-on-month CCPI rose 1.26% in December—food contributed 1.25ppt amid cyclone-related supply disruptions—and core inflation edged up to 2.7%.

Weekly Treasury Bill auction saw weighted average yields rise for a second week: 91-day 7.74% (+19bp), 182-day 8.27% (+32bp), 364-day 8.45% (+26bp); Rs.57.39bn raised of Rs.120bn offered (47.83% subscription). Secondary bond trading was subdued and the rupee appreciated slightly to 309.50/309.80.

Sri Lanka's central bank will close its Public Debt Department and transfer the LankaSecure division to the Payments and Settlements Department effective 1 January 2026. Debt management functions have moved to the Ministry's Public Debt Management Office, while CBSL will continue operating the scripless securities settlement and central depository, with the PSD director appointed Registrar of Government Securities.

People’s Bank launched a relief program for SMBs hit by Cyclone Ditwah: 3–6 month repayment moratoria or interest-only deferral, suspension of fees/penalties until 31 Jan 2026, concessional working-capital loans up to 9% (2 years) and a government-backed 3% micro/SME loan (up to Rs.250k/Rs.1m); apply by 15 Jan 2026.

Sri Lanka's annual inflation was 2.1% in the 12 months to December 2025, with prices up 1.2% in December and food prices spiking; the rupee depreciated to about 309.5/USD by year-end amid large central bank dollar purchases and a deflationary policy stance.

Colombo CCPI headline inflation held at 2.1% year-on-year in December 2025, while month-on-month prices rose 1.26% largely due to food supply disruptions from Cyclone Ditwah. Core inflation accelerated to 2.7% and projections expect a gradual rise towards 5%.

Sri Lanka's rupee closed at 309.50/60 to the US dollar on Dec 31, recovering from 310.00/20 a day earlier, while Treasury bond yields rose across maturities. The currency has weakened from about 293.25/75 last year amid exchange rate policy shifts and the government has announced relief payments funded from a domestic buffer.

Colombo Stock Exchange ASPI rose 41.7% year-on-year in 2025, closing 0.79% higher at 22,624.31 on Dec 31. Capital goods, food & beverage and banking led turnover, with John Keells, Senkadagala Finance, ACL Cables, Sampath Bank and HNB Assurance among top contributors; net foreign outflow was Rs103 million.

Central Bank of Sri Lanka will close the Public Debt Department on 01 January 2026 and transfer the LankaSecure Division to its Payments and Settlements Department. The Finance Ministry's Public Debt Management Office has already assumed debt management functions and CBSL will continue to operate the scripless securities settlement and central depository, with the PSD Director as Registrar of Government Securities.

Sri Lanka Treasury bill yields rose across maturities at Wednesday's auction: 6-month +32bp to 8.27%, 3-month +19bp to 7.74% and 12-month +26bp to 8.45%. Offerings were partially taken up, with 12.46bn of 30bn and 31.02bn of 50bn sold.

Sri Lanka Customs collected Rs870 billion from vehicle imports and expects total year-end customs collections of about Rs2,545 billion. Customs said targets were revised up and attributed higher collections to streamlined processes and use of digital technology amid ongoing economic recovery and recent currency depreciation concerns.