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Wednesday October 14th, 2026

Curfew in Sri Lanka tows as tensions rise, foreign clerics overstaying visa deported

AFP – Sri Lanka clamped curfews at a city outside the capital Sunday to contain religious tensions as the authorities prepared to reopen schools after Easter bombings that killed 257 people.

A senior police officer said the night curfew was imposed to prevent an escalation of mob violence after attacks occurred in Negombo — north of Colombo — where over 100 Christians died in a church bombing two weeks ago.

"At least two motorcycles and two three-wheel taxis have been damaged in the clashes," the police officer told AFP. "We declared a curfew till 7.00 am (0130 GMT) to contain the unrest."

There were no immediate reports of casualties.

The country’s main international airport is located in the area, but police said there was no disruption to airport traffic. Elite Special Task Force commandos were deployed to patrol the streets, police said.

The senior officer said an investigation was underway into the clashes, the first violence between Muslims and Christians since the April 21 jihadist attacks targeting three churches and three luxury hotels in the country.

Tensions gripped Negombo as the authorities prepared to reopen public schools after an extended Easter vacation following the suicide attacks blamed on a local jihadist group which pledged allegiance to the Islamic State group.

The country has been under a state of emergency since the suicide bombings. Security forces and police have been give sweeping powers to arrest and detain suspects for long periods.

Earlier in the day, tens of thousands of security personnel searched public schools for explosives ahead of their reopening Monday.
-Foreign clerics expelled-

The search for explosives and a security cordon thrown around 10,900 schools nationwide came as the government said it has expelled over 600 foreigners, including about 200 Islamic clerics, since the April 21 attacks.

Police spokesman Ruwan Gunasekera said "police and soldiers combed school premises and the surrounding areas to make sure it is safe for children to go back" on Monday.

As part of the clampdown after the attacks on three churches and three luxury hotels, the government announced a crackdown on foreign Islamic clerics operating in the majority Buddhist country.

Home Affairs Minister Vajira Abeywardena said 200 clerics were found to have overstayed visas, for which fines were imposed and they were then expelled.

"Considering the current situation in the country, we have reviewed the visas system and took a decision to tighten visa restrictions for religious teachers," Abeywardena told AFP.

"Out of those who were sent out, about 200 were Islamic preachers."

The suicide attacks were led by a local cleric who is known to have travelled to neighbouring India and made contact with jihadists there.

The minister did not give the nationalities of those who have been expelled, but police have said many foreigners who have overstayed their visas were from Bangladesh, India, Maldives and Pakistan.

"There are religious institutions which have been getting in foreign preachers for decades," Abeywardena said. "We have no issues with them, but there are some which mushroomed recently. We will pay more attention to them."

The minister said the government was overhauling its visa policy following the attacks.

House-to-house searches are being carried out across the country looking for explosives and propaganda material of Islamic extremists.

Global borrowing costs rise as bond yields increase: Fitch

Fitch Ratings-London: The recent sharp and widespread increase in government bond yields represents a significant increase in real global borrowing costs.

Bond yields have risen to multi-decade highs in the US, Germany, UK and Japan in recent weeks, as highlighted in Fitch Ratings’ latest Economic Monitor chart pack.

Ten-year government bond yields have risen in major global markets since the previous Fitch-20 Economic Monitor in June. US yields averaged 4.99% in September, up from 4.47% in June; 3.50% from 3.00% in Germany;
5.46% from 5.06% in the UK; and 2.99% from 2.65% in Japan. In Korea there also was a marked increase, with yields averaging 4.45% from 4.18% in June.

The chart pack highlights another notable development: the pick-up in world trade growth, driven by an IT investment boom that has boosted capital goods imports in the US. Trade growth has surged in several countries, including Mexico, Korea, Canada and Indonesia.

The quarterly ‘Fitch-20 Economic Monitor’ (formerly ‘20/20 Vision’) chart pack covers the 20 major economies (the Fitch-20) that are the focus of Fitch’s Economics team’s global macro analysis, and plots five years of high-frequency economic data for 20 variables, with consistent coverage across each country.

‘Fitch-20 Economic Monitor: September 2026’ is available by clicking the link above or at www.fitchratings.com.

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Sri Lanka to get $100mn ADB loan to strengthen skills training

ECONOMYNEXT – Sri Lanka’s cabinet has approved obtaining a 100 million dollar results-based loan from the Asian Development Bank (ADB) to implement a Skills Development System Transformation Programme aimed at strengthening the country’s technical and vocational education and training (TVET) sector.

“The financing package comprises 50 million dollars in regular ordinary capital resources and 50 million dollars in concessional ordinary capital resources,” minister Nalinda Jayatissa said.

The funds are intended to support sector reforms and the development of a more effective skills development system aligned with labour market needs, he claimed. (Colombo/Oct14/2026)

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Fitch rates Sri Lanka Sampath Bank’s Rs10bn debenture issue A(lka)

Fitch Ratings – Singapore: Fitch Ratings has assigned Sampath Bank PLC’s (AA-(lka)/Stable) proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures of up to LKR10 billion a final National Long-Term Rating of ‘A(lka)’.

The proposed debentures, which will mature in five and seven years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to supplement its Tier 2 capital base to maintain capital adequacy compliance as well as to support loan book growth.

The proposed debentures will qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause that states they will convert to ordinary voting shares upon the occurrence of a trigger event, as determined by the Governing Board of the Central Bank of Sri Lanka.

The final rating is the same as the expected rating assigned on 10 September 2026 and follows the receipt of documents conforming to information already received.

Key Rating Drivers

Fitch rates the proposed Basel III Tier 2 debentures two notches below the bank’s National Long-Term Rating of ‘AA-(lka)’. This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed debentures do not incorporate going-concern loss-absorption features.

Sampath’s National Long-Term Rating is used as the anchor rating for this instrument because the rating reflects the bank’s standalone financial strength and best indicates the risk of the bank becoming non-viable.

Fitch affirmed Sampath’s ratings on 17 August 2026. See our latest rating action commentary, Fitch Affirms Sampath Bank at ‘AA-(lka)’; Outlook Stable , for the key rating drivers and sensitivities.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of the bank’s National Long-Term Rating will lead to a downgrade of the subordinated debt rating.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of the bank’s National Long-Term Rating will lead to an upgrade of the subordinated debt rating.

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Oman’s OQ Trading wins Sri Lanka LPG deal at Aramco price plus $133.93

ECONOMYNEXT – Sri Lanka’s cabinet has approved the proposal to award the contract for the supply of 420,000 metric tonnes (±20%) of Liquefied Petroleum Gas (LPG) to Oman’s OQ Trading Limited for a period of 12 months commencing 1 January 2027, minister Nalinda Jayatissa said.

The contract provides for the supply of 420,000 metric tonnes (±20%) of LPG, including a guaranteed minimum quantity of 336,000 metric tonnes, at a price of Saudi Aramco Contract Price plus US$133.93 per metric tonne on a Cost, Insurance and Freight (CIF) basis, Jayatissa said.

International competitive bids were invited for the procurement, and 4 bids were received.

“The contract was awarded to M/s OQ Trading Limited, the lowest substantially responsive bidder,” he told reporters. (Colombo/Oce14/2026)

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Sri Lanka stocks continue to slide, ASPI drops 0.14-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange were trending down on Wednesday, nearing the psychological 20,000 mark, CSE data showed, with the benchmark All Share Price Index moving down 0.14 percent.

The ASPI was down 27.26 points at 20,050.22, while the more liquid S&P SL20 was down 0.02 percent, or 0.96 points, at 5,729.14.

Positive contributors to the ASPI were LOLC Holdings (up 3.08 percent at 418.00 rupees), Vallibel One (up 2.21 percent at 87.90 rupees), Asiri Hospital Holdings (up 4.98 percent at 25.30 rupees), Ambeon Holdings (up 3.45 percent at 33.00 rupees), and Haycarb (up 1.55 percent at 197.00 rupees).

Commercial Bank of Ceylon (down 0.25 percent at 198.00 rupees), SMB Finance (flat at 1.00 rupee), Hayleys (down 0.23 percent at 221.50 rupees), and Odel (down 7.41 percent at 10.00 rupees) were top negative contributors.

Market turnover was 318.20 million rupees. Retailing led turnover with 100.89 million rupees. (Colombo/Oct14/2026)

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Sri Lanka seeks to ease forex regulatory hurdles for electronics exporters

ECONOMYNEXT – Sri Lanka’s central bank and export board have met electronics exporters to discuss easing forex regulatory hurdles for the sector as the country targets 1 billion dollars in exports by 2028.

“To achieve this target, it is essential that Foreign Exchange Rules, regulations, Monitory and Fiscal Policies are export friendly,” the Export Development Board said.

Over 35 senior management representatives from the Electronic and Electrical sector participated in the seminar.

“The progarmme aimed to support the country’s Electronics and Electrical Sector by leveraging the expertise available within the Central Bank of Sri Lanka to share knowledge and to resolve issues in the areas of Foreign Exchange Rules, Inward and Outward Transactional Regulations, and Forex Repatriation Regulations.”

The industry, with over 100 companies and 37,000 employees, is the fifth largest merchandise export revenue earner of the country and earned 440 million dollars in 2025, the EDB said.

Central bank officials advised them on foreign exchange rules, transactional and working capital regulations, and forex repatriation regulations relevant to them.

“The event provided a platform for Electronics and Electrical Sector and Central Bank of Sri Lanka to connect, share knowledge, and discuss the Regulatory and Operational Issues Faced by Electronic and Electrical Manufacturing Companies and how to resolve them.” (Colombo/Oct14/2026)

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