ECONOMYNEXT – Sri Lanka government’s fuel subsidy and surcharge on vehicle import tax helped to curb inflation, Central Bank Governor Nandalal Weerasinghe said.

President Anura Kumara Dissanayake’s government early this week approved Rs. 41 billion fuel subsidy for the next three months on top of Rs. 57 billion provided from April-June.

“If not for fuel subsidy and surcharge on vehicle imports, the inflation would have been higher than the current level,” Governor Weerasinghe told reporters at a media briefing in Colombo after the monetary policy announcement.

“There could have been higher imports and reserve building up would have been difficult.”

Inflation has risen beyond the Central Bank’s upper band of 7 percent since July.

The inflation hit a 37-month high of 8 percent in August after the government raised fuel prices more than 50 percent following the Middle Eastern escalation by end February.

The Central Bank’s inflation target for the past three years have been 5 percent with lower band of 3 percent and higher band of 7 percent.

The government provided Rs.57 billion for fuel subsidy mainly for diesel. The latest Rs.41 billion has been allocated only for diesel as it is used for public transport.

The government also imposed a temporary 50 percent surcharge on Customs Import Duty on new personal vehicles on May 16 and has  extended it until December 31, a move that will help to prevent outflow of foreign currency.

The Central Bank also tightened the monetary policy in May, raising the key monetary policy rate by 100 basis points, to curb excess demand in the economy to control demand-driven inflation. (Colombo/September 30/2026)

ECONOMYNEXT – Slowing private sector credit growth would still be sufficient to spur Sri Lanka’s economic growth, a top Central Bank official said.

Sri Lanka’s private sector credit growth has slowed to 24.5 percent year on year in August from a higher level of 30 percent a few months ago, after the Central Bank’s monetary policy tightening in May.

However, the Central Bank is optimistic about the current credit growth.

“The credit to the private sector from commercial banks has slowed, but we believe it is sufficient for economic growth,” L R C Pathberiya, the head of the Central Bank’s Economic Research Department told reporters in a media briefing.

The island nation’s economic growth slowed to 4.2 percent on year, its lowest in 11 quarters.

“The moderation is mainly due to the Middle Eastern issue,” Pathberiya said.

Sri Lanka has expected the economy to growth at 5 percent this year.it expanded 4.7 percent in the first half of this year. (Colombo/September 30/2026)

ECONOMYNEXT – Sri Lanka’s Sampath Bank and KOKO have partnered to provide credit facilities for merchants on KOKO’s digital merchant platform, expanding access to business financing.

The KOKO Merchants Credit Facility creates a more convenient pathway to business financing for eligible merchants, Sampath Bank said.

“The initiative extends KOKO’s role beyond payments and customer financing by connecting merchants with Sampath Bank’s financing capabilities, helping them access funding to purchase and replenish inventory, manage working capital and cash flow, respond to seasonal demand and invest in business expansion.”

The facility is designed around a streamlined assessment process that can leverage relevant information from a merchant’s existing relationship and transaction activities with KOKO, helping reduce the time and effort involved in navigating traditional financing processes.

Credit facilities remain subject to Sampath Bank’s eligibility criteria, credit assessment, applicable terms and conditions, and final approval. (Colombo/Sep30/2026)

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 330.68/75 to the US dollar in the spot market on Wednesday, from 330.70/90 the previous day, while bond yields were quoted steady to lower, dealers said.

An auction of 80,000 million rupees Treasury bills was ongoing.

A bond maturing on 01.08.2030 was quoted at 11.15/17 percent, from 11.25/35 percent.

A bond maturing on 15.10.2030 was quoted at 11.20/25 percent, from 11.30/40 percent.

A bond maturing on 01.02.2031 was quoted at 11.20/30 percent, from 11.35/45 percent.

A bond maturing on 15.12.2031 was quoted at 11.40/45 percent.

A bond maturing on 15.12.2032 was quoted at 11.70/75 percent, from 11.75/85 percent.

A bond maturing on 01.11.2033 was quoted at 11.88/95 percent.

The telegraphic transfer rate for the dollar was 326.30 buying, 335.50 selling; the euro was 367.4377 buying, 381.2185 selling; pound was 430.5084 buying, 444.6168 selling. (Colombo/Sep30/2026)

ECONOMYNEXT – Sri Lanka’s LAUGFS Holdings Limited, a diversified conglomerate with interests in energy and supermarkets, has appointed Dhanusha Muthukumarana as Group Managing Director and Group Chief Executive Officer, with effect from October 1, as it seeks to accelerate business transformation and growth across its operations.

Muthukumarana has a background in engineering, technology, leadership and entrepreneurship, the company said.

“The appointment reflects the Group’s focus on strengthening leadership, accelerating business transformation and driving sustainable growth across its diversified portfolio.”

A brief bio, as provided by the company, is reproduced below:

Mr. Muthukumarana is an award-winning professional with more than 26 years of experience across banking and finance, consumer goods, manufacturing, healthcare, logistics, enterprise software and technology consulting, and diversified businesses. He has held senior leadership roles in Sri Lankan and international organisations, including Fortune 500 companies, building expertise in business transformation, enterprise architecture, strategic planning and innovation.

Throughout his career, he has led complex transformation initiatives, improved business operations and aligned technology and operations with corporate strategy. He brings this combination of strategic, commercial and technology leadership to LAUGFS as the Group pursues operational excellence, long-term value creation and value capture.

Mr. Muthukumarana is an executive alumnus of the University of Oxford (Saïd Business School), United Kingdom, where he successfully completed his education in Strategic Innovation and ranked among the top performers in his cohort. He holds a Master of Business Administration (MBA) from the Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura, and possesses postgraduate qualifications in Information Technology. He is currently pursuing postgraduate studies in Economics.

He is a member of the Institute of Electrical and Electronics Engineers, USA (MIEEE), the Institute of Engineering and Technology, United Kingdom (MIET), and the British Computer Society (MBCS). In 2019, Echelon magazine named him among Sri Lanka’s Top 100 Next-Generation Business Leaders (NE100).

He was also the first Sri Lankan inducted into the Forbes Technology Council.
Established in 1995 as Gas Auto Lanka, LAUGFS has grown into one of the largest diversified Sri Lankan groups, operating across more than 20 industries and employing more than 3,500 people globally. The Group has expanded its portfolio across the Oil & Gas, Renewable Energy, Industrial & Engineering, Logistics, Retail & Consumer, Healthcare, and Services sectors, while extending its operations to international markets.

Driven by a spirit of entrepreneurship, innovation and resilience, LAUGFS has built a strong presence in sectors that contribute to the everyday lives of Sri Lankan communities and the broader economy. With a focus on sustainable growth, operational excellence and long-term value creation, the Group continues to strengthen its businesses while exploring new opportunities for growth and development.

Today, LAUGFS remains committed to creating value for its customers, employees, business partners and other stakeholders, while contributing to Sri Lanka’s economic progress and national development.

With the appointment of Mr. Dhanusha Muthukumarana as Group Managing Director and Group Chief Executive Officer, LAUGFS reaffirms its commitment to strengthening leadership capabilities, fostering strategic innovation and driving operational excellence as the Group continues its transformation journey and pursues new opportunities for growth and value creation across its businesses. (Colombo/Sep30/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange opened in green on Wednesday, CSE data showed, and trended up steadily with the benchmark All Share Price Index moving up 0.56 percent by mid-morning.

The ASPI was up 117.10 points at 20,934.92, while the more liquid S&P SL20 was up 0.45 percent, or 26.34 points, at 5,922.74.

Positive contributors to the ASPI were Singer (Sri Lanka) (up 4.47 percent at 79.40 rupees), Ceylon Cold Stores (up 2.11 percent at 121.00 rupees), LOLC Finance (up 1.96 percent at 5.20 rupees), and Dialog Axiata (up 0.22 percent at 45.90 rupees).

Ambeon Holdings (flat at 35.00 rupees), Commercial Bank of Ceylon (down 0.12 percent at 203.00 rupees), and Laugfs Gas (down 1.83 percent at 42.80 rupees) were top negative contributors.

Market turnover was 186.49 million rupees. Capital goods led turnover with 62.01 million rupees, followed by insurance with 52.26 million rupees.

People’s Leasing & Finance PLC announced its allotment basis for the 100 million listed debentures it issued to raise 10 billion rupees, after receiving applications for the full amount. (Colombo/September 30/2026)