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Wednesday October 14th, 2026

Nepalese dig with bare hands for quake survivors as toll rises

KATHMANDU (Reuters) – Rescuers dug with their bare hands and bodies piled up in Nepal on Sunday after an earthquake devastated the heavily crowded Kathmandu valley, killing at least 1,900, and triggered a deadly avalanche on Mount Everest. Army office Santosh Nepal led a group of rescuers that worked all night to open a passage into a collapsed building in the capital of Kathmandu. They had to use pick axes because bulldozers could not get through the ancient city’s narrow streets. "We believe there are still people trapped inside," he told Reuters, pointing at concrete debris and twisted reinforcement rods that was once a three-storey residential building. Among the capital’s landmarks destroyed in the earthquake was the 60-metre (200-foot) Dharahara Tower, built in 1832 for the queen of Nepal, with a viewing balcony that had been open to visitors for the last 10 years. A jagged stump was all that was left of the lighthouse-like structure. As bodies were pulled from the ruins, a policeman said up to 200 people had been trapped inside. Bodies were still arriving at one hospital in Kathmandu, where police officer Sudan Shreshtha said his team had brought 166 corpses overnight. "I am tired and exhausted, but I have to work and have the strength," Shreshtha told Reuters as an ambulance brought three more victims to the Tribhuvan University Teaching Hospital. Bodies were heaped in a dark room; some covered with cloth, some not. A boy aged about seven lay, his face half missing and his stomach bloated like a football. The stench of death was overpowering. Outside, a 30-year-old woman who had been widowed wailed: "Oh Lord, oh God, why did you take him alone? Take me along with him also." Authorities also scrambled to provide shelter in the capital, Kathmandu, for thousands of people who spent the night outside in freezing temperatures and patchy rain, too afraid to return to their damaged homes. People milled about in parks and streets strewn with rubble. The 7.9 magnitude quake struck at midday on Saturday at a busy time of year for the tourism-reliant country’s trekking and climbing season, with an estimated 300,000 foreign tourists in the country. The government planned to pitch tents and turn schools and other public buildings into shelters, said Rameshwor Dangal, a home ministry official. It would also re-open roads and send helicopters to rescue people. Nepal’s police put the death toll at 1,896, with about 4,700 injured. At least 400 were killed in the capital, a city of about 1 million people where many homes are old, flimsy and packed close together. Foreign climbers and their Nepalese guides around Mount Everest were caught by the tremors and a huge avalanche that claimed the highest toll of any disaster on the world’s highest mountain. Seventeen bodies were recovered on Mount Everest base camp and 61 were injured when part of the base camp was engulfed by the snowslide, Ang Tshering Sherpa, president of the Nepal Mountaineering Association, told Reuters. A first helicopter took off from Kathmandu on Sunday morning to airlift the injured after flights were delayed by cloudy weather, Sherpa said. Two light helicopters were shuttling injured from base camp to a lower altitude, from where they could be evacuated back to the capital, emergency officials at Kathmandu airport said. Hospitals across the impoverished nation of 28 million people struggled to cope with its worst quake in 81 years. They expected a fresh influx of patients on Sunday but medical supplies were running low. Kathmandu’s Bir Hospital had received 300 to 350 patients with serious injuries through Saturday, and most of them died, said paramedic Dinesh Chaudhary. He said the hospital was procuring medicines from shops outside. PEOPLE STILL TRAPPED The earthquake, centred 50 miles (80 km) east of the second city, Pokhara, was all the more destructive for being shallow. Rescue operations had still not begun in towns in some remote areas. Across the city, rescuers scrabbled through destroyed buildings, among them ancient, wooden Hindu temples. "I can see three bodies of monks trapped in the debris of a collapsed building near a monastery," Indian tourist Devyani Pant told Reuters. "We are trying to pull the bodies out and look for anyone who is trapped." Neighbouring India, where 44 people were reported killed in the quake and its aftershocks, sent military aircraft to Nepal with medical equipment and relief teams. It also said it had dispatched 285 members of its National Disaster Response Force. In Tibet, the death toll climbed to 17, according to a tweet from China’s state news agency, Xinhua. International aid groups readied staff to go to Nepal to help provide clean water, sanitation and emergency food, while the United States, Britain and Pakistan were among countries providing search-and-rescue experts. More than 1,000 climbers were on Everest at the start of their season when disaster struck. Romanian climber Alex Gavan tweeted on Saturday that there had been a "huge earthquake then huge avalanche" at Everest base camp, forcing him to run for his life. In a later tweet he made a desperate appeal for a helicopter to fly in and evacuate climbers who had been hurt: "Many dead. Much more badly injured. More to die if not heli asap." In the Annapurna mountain range, where scores were killed in the nation’s worst trekking accident last year, many hikers were stranded after the quake, according to messages on social media, but no deaths there had been reported. Nepal, sandwiched between India and China, has had its share of natural disasters. Its worst earthquake in 1934 killed more than 8,500 people.

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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