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Friday November 13th, 2026

Fitch changes ratings of 9 Sri Lanka banks, finance companies after sovereign downgrade

ECONOMYNEXT – Fitch Ratings said it was revising the the local ratings of nine Sri Lanka banks and finance companies following a rating scale re-calibration in the wake of an earlier sovereign rating downgrade.

The ratings of Commercial Bank and HNB were lowered and Cargills Bank raised.

CBC Finance and HNB Finance, Richard Pieris were lowered. The ratings of Richard Pieris Finance, Singer Finance and AMW Capital Leasing Finance were raised.

Abans Finance was placed on rating watch.

Banks

Commercial Bank of Ceylon PLC (CB) to ‘AA-(lka)’/Stable from ‘AA+(lka)’/Negative

Hatton National Bank PLC (HNB) to ‘AA-(lka)’/Stable from ‘AA+(lka)’/Negative

Cargills Bank Limited to ‘AA-(lka)’/Stable from ‘A+(lka)’/Stable

Non-Bank Financial Institutions

CBC Finance LTD to ‘A(lka)’/Stable from ‘AA-(lka)’/Negative

HNB Finance PLC to ‘A(lka)’/Stable from ‘AA-(lka)’/Negative

Richard Pieris Finance Limited to ‘AA-(lka)’/Stable from ‘A-(lka)’/Stable

Singer Finance (Lanka) PLC to ‘A+(lka)’/Stable from ‘BBB(lka)’/Stable

Abans Finance PLC to ‘A(lka)’/Rating Watch Evolving (RWE) from ‘BB+(lka)’/RWE

AMW Capital Leasing And Finance PLC to ‘AA-(lka)’/Negative from ‘BBB-(lka)’/Negative

Fitch had earlier downgraded the National Ratings of Bank of Ceylon (BOC) and People’s Bank (Sri Lanka) (PB) to ‘AA-(lka)’ from ‘AA+(lka)’ with Stable outlooks.

The full statement is reproduced below:

RATING ACTION COMMENTARY
Fitch Revises 9 Sri Lankan Financial Institutions’ Ratings on Recalibration; 2 Downgrades

Mon 25 Jan, 2021 – 05:45 ET
Fitch Ratings – Colombo – 25 Jan 2021: Fitch Ratings has revised the National Long-Term Ratings of Sri Lankan financial institutions following the recalibration of the agency’s Sri Lankan national rating scale.

The recalibration is to reflect changes in the relative creditworthiness among Sri Lankan issuers following Fitch’s downgrade of the sovereign rating to ‘CCC’ from ‘B-‘/Negative on 27 November 2020. Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of ‘CCC’ or below.

Revision ratings are used to modify ratings for reasons that are not related to credit quality in order to reflect changes in the national rating scale driven purely by the recalibration of the National Ratings Correspondence Table.

National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’.

Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale. National scales are not comparable with Fitch’s international rating scales or with other countries’ national rating scales.

For details, see “Fitch Ratings Recalibrates its Sri Lankan National Rating Scale”, dated 22 December 2020, at https://www.fitchratings.com/site/pr/10147729.

The National Ratings of the Sri Lankan financial institutions consider their creditworthiness relative to other issuers in the country.

The recalibration of the Sri Lankan National Rating scale has resulted in the revision of the National Long-Term Ratings of the following Sri Lankan financial institutions:
Banks

Commercial Bank of Ceylon PLC (CB) to ‘AA-(lka)’/Stable from ‘AA+(lka)’/Negative

Hatton National Bank PLC (HNB) to ‘AA-(lka)’/Stable from ‘AA+(lka)’/Negative

Cargills Bank Limited to ‘AA-(lka)’/Stable from ‘A+(lka)’/Stable

Non-Bank Financial Institutions

CBC Finance LTD to ‘A(lka)’/Stable from ‘AA-(lka)’/Negative

HNB Finance PLC to ‘A(lka)’/Stable from ‘AA-(lka)’/Negative

Richard Pieris Finance Limited to ‘AA-(lka)’/Stable from ‘A-(lka)’/Stable

Singer Finance (Lanka) PLC to ‘A+(lka)’/Stable from ‘BBB(lka)’/Stable

Abans Finance PLC to ‘A(lka)’/Rating Watch Evolving (RWE) from ‘BB+(lka)’/RWE

AMW Capital Leasing And Finance PLC to ‘AA-(lka)’/Negative from ‘BBB-(lka)’/Negative

At the same time, Fitch has downgraded the National Ratings of Bank of Ceylon (BOC) and People’s Bank (Sri Lanka) (PB) to ‘AA-(lka)’ from ‘AA+(lka)’.

The Outlook is Stable.

The revision of the National Ratings of CB and HNB and the revision of the Outlooks to Stable from Negative are driven by the recalibration of the national rating scale.

The recalibration also reflects the differing levels of constraint placed on Sri Lankan issuers due to the sovereign’s credit profile.

The revision of the National Ratings of CBC Finance and HNB Finance stems from the recalibration of the National Ratings of their parents, CB and HNB.

The Stable Outlooks on CBC Finance and HNB Finance mirror the Stable Outlook on CB and HNB.

The revision of the National Ratings and the Outlooks of Cargillls Bank, Richard Pieris Finance, Singer Finance (Lanka), Abans Finance and AMW Capital Leasing and Finance stem from the change in the relativity of their corporate parents due to the recalibration of the corporate parents’ National Ratings.

For details, see “Fitch Revises 7, Affirms 7 Sri Lankan Non-Fin Corporates’ Ratings on National Rating Scale Revision”, dated 13 January 2021, at https://www.fitchratings.com/site/pr/10148875.

Fitch has taken corresponding rating action on the financial institutions’ national scale debt ratings, where assigned. The senior debt ratings are at the same level as the National Long-Term Ratings. National Ratings assigned to Tier 2 issues are two notches below the National Rating anchor ratings.

A full list of ratings is at the end of this commentary.

Other Sri Lankan financial institutions’ national ratings, which are not mentioned in this commentary, have not been affected by the recalibration exercise.

KEY RATING DRIVERS

The downgrade of the National Ratings of BOC and PB reflects our assessment that extraordinary support from the sovereign can no longer be relied upon as its ability to provide extraordinary support is severely constrained, which is reflected by its ‘CCC’ Rating.

BOC’s and PB’s National Ratings are therefore driven by their intrinsic credit profiles and reflect their entrenched domestic franchises, higher risk appetite and smaller capital buffers due to their state linkages, relative to similarly rated private-bank peers.

RATING SENSITIVITIES

The National Ratings are sensitive to a change in the financial institutions’ creditworthiness relative to other Sri Lankan issuers and the sovereign rating.

Fitch expects to resolve the Rating Watch on Abans Finance after the completion of its sale to Softlogic Capital PLC with the potential for the Rating Watch to be extended, which is dependent on Fitch having greater clarity on the ability and propensity of the new ultimate parent, Softlogic Holdings PLC, to support the surviving entity and its standalone credit strength.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Upside to the National Long-Term Ratings of BOC, PB, CB and HNB is limited in the near term due to our assessment of the sovereign rating and the operating environment.

The parents’ increased ability and/or propensity to provide support to their subsidiaries could lead to positive action on the National Long-Term Ratings of Cargillls Bank, Richard Pieris Finance, Singer Finance (Lanka), CBC Finance, HNB Finance, Abans Finance and AMW Capital Leasing and Finance.

Debt ratings will move in tandem with the National Long-Term Ratings.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Pressure on the National Ratings of BOC and PB will most likely stem from a deterioration in Sri Lanka’s sovereign rating as this will probably constrain their standalone credit profiles.

Pressure on CB’s and HNB’s National Long-Term Ratings could stem from either a downgrade of Sri Lanka’s sovereign rating or a sustained decline in their credit profiles, largely in terms of their capital buffers, while operating environment risks remain high.

A weaker assessment of the operating environment independent of changes in the sovereign rating, or a deterioration in their key credit metrics beyond our base-case expectations relative to peers, would also lead to increased downward pressure on the ratings of BOC, PB, CB and HNB.

The parents’ weaker ability and/or propensity to provide support to their subsidiaries could lead to negative action on the National Long-Term Ratings of Cargillls Bank, Richard Pieris Finance, Singer Finance (Lanka), CBC Finance, HNB Finance, Abans Finance and AMW Capital Leasing and Finance.

Debt ratings would be downgraded if the National Long-Term Ratings were downgraded.

BOC and PB have a 1.78% equity stake each in Fitch Ratings Lanka Ltd. No shareholder other than Fitch, Inc. is involved in the day-to-day rating operations of, or credit reviews undertaken by, Fitch Ratings Lanka Ltd.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

CBC Finance’s rating is driven by CB’s rating.

HNB Finance’s rating is driven by HNB’s rating.

Singer Finance’s rating is driven by Singer (Sri Lanka) PLC (AA(lka)/Stable). Abans Finance’s rating is driven by Abans PLC (AA(lka)/Stable).

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

Read more
Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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