ECONOMYNEXT – Sri Lanka’s rupee was quoted at 327.90/328.05 to the US dollar in the spot market on Tuesday, stronger from 328.10/30 the previous day, while bond yields were down particularly on the belly end of the actively quoted tenors, dealers said.

A bond maturing on 15.12.2029 was quoted at 10.25/35 percent, up from 10.25/30 percent.

A bond maturing on 01.08.2030 was quoted flat at 10.45/50 percent.

A bond maturing on 15.10.2030 was quoted at 10.50/53 percent, down from 10.52/55 percent.

A bond maturing on 01.10.2032 was quoted at 10.95/11.00 percent.

A bond maturing on 15.12.2032 was quoted at 10.98/11.00 percent, down from 11.00/10 percent.

A bond maturing on 15.01.2033 was quoted at 11.10/15 percent.

A bond maturing on 01.11.2033 was quoted at 11.25/30 percent.

A bond maturing on 15.10.2034 was quoted at 11.45/48 percent.

A bond maturing on 15.08.2036 was quoted flat at 11.75/80 percent.

The telegraphic transfer rate for the dollar was 323.70 buying, 332.70 selling; the euro was 373.4169 buying, 387.1977 selling; and the pound was 437.5059 buying, 451.6143 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.23 percent, 50.05 points, at 21,388.74; while the S&P SL20 was up 0.09 percent, 5.51 points, at 6,015.19. (Colombo/Sep1/2026)

ECONOMYNEXT – Sri Lanka’s construction sector activity expanded in July 2026 due to a sustained flow of construction work, registering a value of 61.4 on a Purchasing Managers Index compiled by the central bank.

“Many survey respondents highlighted the sustained flow of construction work despite input constraints, particularly the short supply of bitumen,” the central bank said.

The New Orders Index expanded, registering 57.1 in July up from 54.3 in June, due to a “steady inflow of new projects” the central bank said.

The Quantity of Purchases Index also expanded, registering 64.7 up from 60.0 in June, supported by the increased availability of construction work.

The Employment Index strengthened in July, registering 61.8 up from June’s 61.4, “although many firms continued to report skilled labour shortages.”

“Survey participants continued to report supply shortages and elevated material prices.”

The Suppliers’ Delivery Time remained high in July, registering an index value of 60.0 from 62.9 in June. (Colombo/Sep1/2026)

ECONOMYNEXT – The Sri Lankan government hosted high-level talks at the Presidential Secretariat to chart a road map for developing the island nation’s mineral sector in line with its export-oriented National Mineral Policy 2026, the President’s office said.

Chaired by President Anura Kumara Dissanayake, the meeting brought together key state and industry leaders, including representatives from the Geological Survey and Mines Bureau (GSMB) and the Sri Lanka Mineral Sands Association (SLMSA).

Discussions centered on establishing systematic mechanisms for the exploration, extraction, and downstream value addition of Sri Lanka’s unexploited mineral wealth to support broader national economic recovery and expand export revenues.

“Particular attention was also given to developing infrastructure, providing incentives for investors and promoting research and development to strengthen domestic manufacturing industries,” the Presidential Media Division (PMD) said in a statement.

Addressing long-standing structural inefficiencies in the industry, the conference highlighted the urgent need to transition from exporting unrefined raw materials to fostering domestic processing.

A primary topic on the agenda was resolving operational hurdles faced by private investors, particularly bureaucracy and delays surrounding mining licensing approvals.

Acknowledging shortcomings in the existing regulatory framework, President Dissanayake emphasized that institutional coordination must be improved and maximum transparency maintained to attract both domestic and foreign capital.

Despite the administration’s push to transform the sector into an export driver, the strategy unfolds amid growing concerns from industry monitors and environmental groups.

Critics point out that past attempts to overhaul the mineral sector were bogged down by policy inconsistencies and weak regulatory oversight, which allowed valuable resources like ilmenite, rutile, and high-purity quartz to leave the country with minimal processing.

Environmental advocates stress that expanding inland and coastal mining must be paired with strict ecological safeguards to prevent habitat destruction and coastal erosion, posing a critical test for the government as it seeks to balance commercial exploitation with sustainable governance. (Colombo/August 31/2026)

ECONOMYNEXT – Sri Lanka’s overall rate of inflation, as measured by the Colombo Consumer Price Index (CCPI), rose to more than three-year high of 8.0 percent in August 2026 from 7.3 percent in the previous month, breaching the Central Bank’s upper inflation target rate of 7 percent for the second month, data from the state statistics office showed.

The CCPI for all items in August 2026 stood at 208.8, recording an increase of 0.6 index points or 0.28 percent compared to 208.2 in July 2026.

“This represents an increase in expenditure value of Rs.526.15 in the market basket,” the Department of Census and Statistics said in a statement.

The island nation’s economy witnessed upward price adjustments after the government raised fuel prices by nearly 50 percent following a supply shortage due to Middle East escalation, amid higher global oil prices.

Year-on-year food inflation accelerated to 8.5 percent in August 2026, its highest since May 2023 and rising from 6.3 percent in July 2026, contributing mainly to the increase in headline inflation.

Non-food inflation, year on year, rose to 7.7 percent in August 2026, easing from 7.8 percent in July 2026.

Core inflation, year on year, accelerated to 5.5 in August 2026 from 4.4% in the previous month.

The Central Bank kept its Overnight Policy Rate staedy in its last monetary policy meeting.

The Central Bank Governor has expected the inflation to ease to 5 percent towards the end of the year if the average global oil prices remain around US$80 per barrel. (Colombo/August 31/2026)

ECONOMYNEXT – Sri Lanka’s rupee closed at 328.10/30 to the US dollar in the spot market on Monday, weaker from 327.98/328.04 Friday, while bond yields closed lower on selected tenors while the rest of the yield curve consolidated, dealers said.

A bond maturing on 15.09.2027 closed at 9.45/55 percent.

A bond maturing on 15.02.2028 closed flat at 9.90/10.00 percent.

A bond maturing on 15.12.2029 closed flat at 10.25/30 percent.

A bond maturing on 01.08.2030 closed at 10.45/50 percent.

A bond maturing on 15.10.2030 closed at 10.52/65 percent, down from 10.50/55 percent.

A bond maturing on 15.12.2032 closed at 11.00/10 percent, down from 10.95/11.05 percent.

A bond maturing on 15.10.2032 closed at 11.40/50 percent.

A bond maturing on 15.03.2035 closed at 11.50/60 percent.

A bond maturing on 15.08.2036 closed at 11.75/80 percent, down from 11.77/80 percent.

A bond maturing on 01.07.2037 closed at 11.75/85 percent, down from 11.80/92 percent. (Colombo/Aug31/2026)

ECONOMYNEXT – Sri Lanka has launched the National Tourism Strategic Planning Consultancy (2026–2031) and the Global Promotional Campaign Roadmap Consultancy, supported by the World Bank’s Grant Facility for Project Preparation (GFPP) with a total grant allocation of 1 million dollars.

The formulation of the National Tourism Strategic Plan has been awarded to a joint partnership between Spain’s Aninver Development Partners and Sri Lanka’s EML Consultants PLC.

Local team leader Malraj Kiriella said that while foreign arrivals have rebounded, tourist spending remains depressed.

“In 2025, the country received approximately 2.36 million visitors, exceeding the level achieved in 2018. However, earnings were approximately US $3.2 billion, and average earnings per tourist remained significantly below the 2018 level,” Kiriella said.

Kiriella explained that the strategic roadmap will focus on increasing visitor spending, encouraging longer stays, and spreading economic benefits across all nine provinces by linking tourism directly with agriculture, tea, wellness, fisheries, and creative industries.

Running in parallel, the destination communication campaign roadmap is being formulated by Skift Inc of the United States and MTI Consulting of Sri Lanka to modernize global marketing through data-driven campaigns.

José de la Maza, Managing Director of Aninver Development Partners, emphasized the importance of creating distinctive travel products, supporting local small businesses, and minimizing economic leakages.

“As everybody is discussing: focus on yield, not on number of visitors. So value per visitor, it’s important. We need to—of course, we can grow in visitors year over year, but it doesn’t have to be the key priority,” Maza said.

The 24-week strategic consultancy will conduct stakeholder co-creation workshops in October and validation sessions in January before finalizing a costed, actionable national roadmap by February. (Colombo/Aug31/2026)