News & market updates

Colombo Stock Exchange closed lower, with the ASPI down 0.38% to 21,148.71 and market turnover of Rs.1.094 billion; capital goods led turnover at Rs.389 million. Bogala Graphite reported an indirect change of control (shares down 2.01%) and Lankem Ceylon disclosed a Rs.500m corporate guarantee for its subsidiary (shares up 5.23%).

Sri Lanka's central bank will begin paying insured depositors of Nation Lanka Finance PLC up to Rs. 1,100,000 via People's Bank branches from Aug. 1 after cancelling NLFP's licence effective 3 July 2026. Claim forms, required documents and FAQs are available on the CBSL website and payments can be made over-the-counter or by crediting/ opening People's Bank accounts.

The Federal Reserve left interest rates unchanged in a split decision, leaving bond markets uncertain and Asian stocks trading volatile after a week-long rout. Brent futures slipped below $90 amid Middle East fighting and longer-dated U.S. Treasury yields rose to multi-decade highs.

Oil prices slipped as markets weighed Gulf supply flows: Brent fell 1.06% to $89.78/bbl and WTI fell 0.76% to $83.82/bbl amid escalating Gulf attacks, while analysts note crude is still reaching markets via alternative routes.

The LMD-PEPPERCUBE Business Confidence Index rose 19 points to 151 in July, reversing the prior month's drop though still below the 12-month average (170) and July 2025 level (190). The report also notes World Bank income reclassification, LP gas price cuts and ongoing global risks (Middle East) shaping sentiment.

Deputy Minister Anil Jayantha Fernando said S&P's favourable assessment reflects policy consistency, stronger fiscal management and improved debt management but warned structural vulnerabilities remain, notably a Rs.2,500 billion interest bill that limits development spending, energy dependence and exposure to external shocks. He added government revenue had reached 63.5% of the annual target by July and foreign exchange reserves and the T&C assessment have improved.

Sri Lanka's tourism industry surpassed 1.3 million visitors in the first 26 days of July as arrivals for the period edged up 0.11% YoY to 167,401, led by India (38,785 visitors, 23%). YTD arrivals remain about 2% below last year; interim promotional campaigns are due next month.

The government launched a nationwide 'A Culture of Integrity, A Clean Sri Lanka' complaint drive inviting citizens to report corruption, misconduct and service shortfalls via QR codes, email, post, phone and messaging, backed by a digital monitoring system and running until 31 Dec 2026.

Houlihan Lokey values the Indian Premier League's business at $20.6 billion, up about 11% year‑on‑year. Franchise valuations hit record highs (Bengaluru sold for $1.78bn, Rajasthan for $1.65bn) and the league's stand‑alone brand is valued at $4.3bn.

SLPMA President Dinesh Athapaththu urged the government to establish a stable, long-term pharmaceutical buyback scheme to attract investment and expand domestic pharmaceutical manufacturing. He also called for streamlined raw-material import approvals and consistent investment incentives to cut delays, lower costs and boost innovation and exports.

Sanasa Life Insurance PLC said its Capital Adequacy Ratio rose to 123% and Total Available Capital to Rs. 941.6 million as at 30 June 2026 after proceeds from an unlisted debenture were released on 21 July and invested in government securities. The release followed the Insurance Regulatory Commission lifting the suspension on its long-term insurance registration earlier in the month.

The Cabinet approved merging the Gem and Jewellery Research and Training Institute into the National Gem and Jewellery Authority as its Research and Training Division, authorising the legal and administrative steps to formalise the integration to eliminate duplication and improve sector coordination (policy approval given on 17 March 2025).

Odel PLC has revised its Odel Mall plan, prioritising completion of Zone 1 within 18-24 months and deferring Zone 2. Construction has recommenced, significant contracts and capital commitments remain, and the company is pursuing a reduced-scope financing plan plus loan restructuring with a HNB-led banking consortium.

Cabinet approved disposal of the Sri Lanka Transport Board's accumulated scrap metal, awarding procurement contracts totalling Rs.195.89 million to six industrial bidders; Ashok Steel Industries secured the largest share (Rs.89.42m). The sale is intended to clear scrap material and generate revenue.

Sri Lanka is accelerating intellectual property reforms, digitisation and enforcement to boost US trade and investment. NIPO says historical records have been digitised and aims to reduce patent registration times to around eight months by mid-2027.

Short-term Treasury Bill weighted average yields fell for a third consecutive week, the 91-day yield declined nine basis points to 9.86% and the 182-day yield fell three bps to 10.21%, while the 364-day held at 10.20%; the auction raised the full Rs. 140 billion offered. Money-market liquidity was strong (net surplus Rs. 185.96 billion) and the secondary bond market saw mixed moves ahead of a Rs. 250 billion Treasury Bond auction due 30 July.

Sri Lanka's rupee was quoted at 335.95/336.05 to the US dollar on Thursday, slightly firmer than 336.10/336.20 on Tuesday; government bond yields were broadly steady, with the 15.12.2028 bond at about 10.70/85% and 2029-2030 maturities quoted around 11.10%-11.75%.

Atlas PlayPalz, an activity-based learning brand of Atlas Axillia Co. (Pvt) Ltd., partnered with the Ministry of Women and Child Affairs for Sri Lanka's ECD Week 2026, engaging over 1,000 participants across three events and launching new modular activity kits to support early childhood learning.

Diesel & Motor Engineering PLC (DIMO) is installing international-standard LED floodlighting across four key hard courts, including the centre court, in partnership with the Sri Lanka Tennis Association and SLTPL; installation is underway and expected to be completed in the coming weeks with a nighttime unveiling.

Mahindra by Evolution Auto showcased its electric vehicle lineup (Treo Plus, Zor, ZEO) at the Colombo EV Motor Show 2026, drawing strong interest from passenger operators, delivery firms and fleet owners. The event highlighted running-cost savings, charging convenience and commercial suitability to boost EV adoption in Sri Lanka.

Vito Wood Fired Pizza opened its sixth outlet at The Shoppes at City of Dreams Sri Lanka, expanding the restaurant chain that began in Kandy in 2017 to locations in Kandy, Colombo, Peradeniya, Negombo and Galle.

Professor Martin Green OBE, Chief Executive of Care England, commended Sri Lanka's International Institute of Health Sciences (IIHS) for developing a globally ready health and social care workforce, highlighting its combination of academic excellence, practical clinical training and alignment with UK care standards.

The Shoppes at City of Dreams Sri Lanka announced Scope Cinemas, a five‑screen multiplex with two VIP halls, will open on Level 10 before end‑2026 as a flagship anchor for the destination, expanding its retail, dining and entertainment offerings.

INSEE Lanka won top honours at the Sri Lankan Sustainability Awards 2026, including 'Sustainable Organization of the Year' and 'Sustainable Cement Brand of the Year' for a second consecutive year. The company also received 'Sustainable Technology Provider' for its Mass Pouring Solution and 'Sustainable Green Material Innovation' for INSEE Micro Concrete.

Allianz Lanka expanded its islandwide road-safety awareness campaign to Kurunegala and Kuliyapitiya, placing road-safety messaging on more than 6,000 three-wheelers nationwide and providing participating drivers with a one-year complimentary accidental death cover.

Siddhalepa's Ayurveda product range won the 'Excellence in Herbal Wellness & Functional Nutrition in Sri Lanka' award and Siddhalepa Ayurveda Health Resort was named 'Holistic Health & Wellness Service Provider of the Year' at the GlobalHealth Sri Lanka Awards gala in Colombo on 21 July 2026.

Smart Quest has launched Smart Quest Coaching and Consulting (Pvt) Ltd Maldives, its first overseas operation, offering leadership training, professional coaching certification and HR consultancy as it marks 20 years in business and expands across South Asia.

EDB's National Packaging Centre and the Export Agriculture Division ran a workshop on 22 July 2026 for nearly 100 participants on cinnamon packaging and compliance with the EU Packaging and Packaging Waste Regulation (PPWR), fully enforced from 12 Aug 2026. Presenters urged exporters to eliminate PFAS and heavy metals, prepare EU Declarations of Conformity, ensure operator identification and register under EPR schemes.