ECONOMYNEXT – Sri Lanka liquefied petroleum gas (LPG) supplier LAUGFS Gas PLC has said it is discussing options with interested parties involving its wholly owned subsidiary, LAUGFS Terminals Limited, which owns and operates a 30,000-tonne LPG terminal at the Hambantota International Port.

The discussions are informal and relate to a range of potential transactions, including commercial collaborations, investments, and the possible disposal of part or all of its shareholding in the subsidiary, the listed company said in a market filing.

“No agreement has been reached on the structure or terms of any transaction. and no definitive transaction agreement has been entered into.”

The firm also said any financial impact could not be determined at this stage given the preliminary nature of the discussions.

LAUGFS Terminals owns and operates the 30,000-tonne LPG terminal located at the Hambantota International Port, a key energy infrastructure asset in Sri Lanka.

There have been periodic shortages of LAUGFS gas in the island nation, including a notable supply disruption in early 2026.

More recently, in October 2026, LAUGFS gas shortages have persisted for several weeks in some areas. (Colombo/Oct26/2026)

ECONOMYNEXT – Sri Lanka’s state-owned commercial bank, Bank of Ceylon plans to raise 30 billion rupees through the issuance of Basel III-compliant debentures, making it the largest listed debenture issue undertaken in the country’s capital market.

Up to 300 million Basel III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable 5-year (2026/31) and 7-year (2026/33) debentures will be offered, providing medium to long-term fixed income investment opportunities.

The proposed instruments will carry a non-viability write – down feature, the company said.

BoC proposes to initially raise 10 billion rupees, with an option to increase the issue to 20 billion rupees in the event of an oversubscription of the initial tranche and a further option to increase the total issue size up to 30 billion rupees.

The issue is confined to qualified investors and the minimum subscription for qualified investors is 10,000 rupees, while individual investors are required to apply for at least 5 million rupees.

The debentures are offered in four different types to meet diverse requirements of qualified investors.

The fixed coupon rate of the five-year debenture will be 12.75 percent per annum while the floating coupon rate will be 1.50 percent above the applicable 12-month Treasury Bill rate.

The fixed coupon rate of the seven-year debenture will be 13.00 percent per annum while the floating coupon rate will be 1.75 percent above the applicable 12-
month Treasury Bill rate.

“BOC’s largest debenture issue comes at a significant juncture for the Sri Lankan economy, at a time when the country is prioritizing sustainable, investment-led and inclusive economic growth,” the state-owned lender said.

“Against this backdrop, a stronger capital base will further enhance BOC’s capacity to mobilize and channel funds towards productive sectors of the economy, thereby supporting Sri Lanka’s next phase of economic development. This landmark issue therefore represents more than a significant capital-raising exercise for the Bank. BOC, as the country’s leading state-owned commercial bank, remains well positioned to play a pivotal role in financing businesses, facilitating investment and supporting the broader development priorities of the country.”

BOC is a Corporate Finance Advisor licensed by the Securities and Exchange Commission of Sri Lanka.

This debenture issuance was structured and managed by the Investment Banking team with expertise in structuring innovative capital market instruments.

The issue follows BOC’s pioneering Bond issuance, another transaction structured and managed by the Bank’s Investment Banking Division, reflecting BOC’s continued leadership in developing innovative capital-market solutions while advancing sustainable finance in Sri Lanka.

The Legal Department of BOC acts as the lawyers to the issue, while the Corporate Branch of the Bank acts as the bankers to the issue.

The Investment Banking Division will also continue to act as the Registrar to the proposed issue, while Hatton National Bank PLC will be the trustee to the issue.

The subscription list opens at 9.30 am on November 3 and will remain open for 14 market days unless the bank decides to close it earlier based on subscription levels.

Applications for the debentures will be accepted from qualified investors in accordance with the terms and conditions set out in the Prospectus.

The Prospectus and application forms can be downloaded from the web sites of the CSE; www.cse.lk and BOC; www.boc.lk.

Duly completed application forms should be enclosed in an envelope marked “BOC Debenture Issue” together with the remittance for the full amount payable on application and delivered to the Investment Banking Division at 7 th Floor of BOC Head Office or collection points mentioned in the prospectus.

The debenture issue is expected to further enhance the bank’s capacity to support corporate, SME, retail and institutional customers while maintaining prudent regulatory capital buffers.

“Bank of Ceylon invites eligible local and foreign investors to participate in this landmark issue and be a part of the Bank’s continuing journey of financial strength and contribution to Sri Lanka’s economic development.”

The debentures carry an issue rating of AA (Stable) from Lanka Rating Agency, while BOC’s issuer rating stands at AA-(lka)/Stable from Fitch Ratings Lanka Ltd.

The issue has received in principle CSE approval. (Colombo/Oct26/2026)

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.25/35 to the US dollar in the spot market on Monday, weaker from 332.10/20 Friday, while bond yields closed steady to higher on selected tenors, dealers said.

A bond maturing on 15.09.2029 closed at 11.08/15 percent, up from 11.05/10 percent.

A bond maturing on 01.08.2030 closed flat at 11.45/55 percent.

A bond maturing on 01.02.2031 closed flat at 11.70/75 percent.

A bond maturing on 01.12.2031 closed flat at 11.80/90 percent.

A bond maturing on 15.01.2033 closed at 12.15/25 percent, up from 11.90/12.05 percent.

A bond maturing on 15.10.2034 closed at 12.45/55 percent, up from 12.35/45 percent. (Colombo/Oct26/2026)

ECONOMYNEXT – Sri Lanka’s services exports in September 2026 rose 0.67 percent to 306.17 million dollars, compared to the same period last year, the island’s Export Development Board said.

Financial services grew 166.04 percent to 7.64 million dollars.

Transport and logistics grew 23.32 percent to 167.90 million dollars.

Earnings from construction fell to 6.82 million dollars in September 2026, down 43.05 percent year-on-year.

Exports earnings from ICT/BPM fell 19.15 percent to 123.81 million dollars in September 2026 compared with September 2025.

Services exports reached an estimated 2,850.63 million dollars from January to September 2026, a year-on-year increase of 3.88 percent.

Sri Lanka goods exports rise 21.66-pct in Sept 2026, driven by electronics, spice and petro
Total exports of goods and services for September 2026 was 1,691.18 billion US dollars, up 17.23 percent from September 2025. (Colombo/Oct26/2026)

ECONOMYNEXT – Sri Lanka’s Public Debt Management Office has rejected every bid it received at the Domestic Dollar Bond auction on October 23.

“Pursuant to Section 6 of the Offer Document, which reserves the Issuer’s right to accept or reject any application, in whole or in part, the Issuer has decided not to accept any bids received under this auction,” the PDMO said.

The official notice offered no further explanation.

The issue aimed to raise 100 million dollars.

The fixed rate of interest payable on the bond was to be determined through competitive bidding.

Sri Lanka to raise $100mn through domestic dollar bond auction
Sri Lanka holds pre-bid meeting ahead of Domestic Dollar Bond issue
Sri Lanka to allow exporters to invest in domestic dollar bonds

The auction came at a time when markets were closely watching the government’s efforts to manage debt and strengthen economic stability. (Colombo/Oct26/2026)

ECONOYNEXT – Sri Lanka’s Colombo Stock Exchange closed lower on Monday, CSE data showed, with the benchmark All Share Price Index falling 0.23 percent.

The ASPI was down 44.35 points at 19,640.56, while the more liquid S&P SL20 was down 0.21 percent, or 11.76 points, at 5,601.87.

Market sentiment remained subdued amidst low turnover, with investors adopting a wait-and-see approach as geopolitical tensions escalate, NDB Securities Head of Research and Strategy Raynal Wickremeratne noted.

Positive contributors to the ASPI were Singer (Sri Lanka) (up 1.74 percent at 70.00 rupees), Ceylon Cold Stores (up 0.84 percent at 120.00 rupees), LOLC Finance (up 2.27 percent at 4.50 rupees), ACL Cables (up 1.16 percent at 87.00 rupees), and John Keells Holdings (up 0.57 percent at 17.70 rupees).

Commercial Bank of Ceylon (down 0.38 percent at 195.25 rupees), Distilleries Company of Sri Lanka (down 0.58 percent at 51.60 rupees), Hayleys (down 0.58 percent at 215.75 rupees), Malwatte Valley Plantations (down 4.76 percent at 54.00 rupees), and LOLC Holdings (down 1.01 percent at 392.50 rupees) were top negative contributors.

Market turnover was 666.29 million rupees. The Banking industry group led turnover with 185.67 million rupees.

Crossings were recorded in Access Engineering (74.5 million rupees) and Commercial Bank of Ceylon (59 million rupees). (Colombo/Oct26/2026)