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Wednesday October 14th, 2026

Sri Lanka expects quicker recovery in tourism: Minister

ECONOMYNEXT – Sri Lanka’s tourism minister said he expected the country’s tourism industry to bounce back in as little as three months, with security authorities rapidly closing down a terror network, after holidaymakers avoided the island following co-ordinated bombings on Easter Sunday.

"We will bounce back in the next three months," John Amaratunga told reporters in Colombo on Friday.

Sri Lanka Tourism Development Authority Chairman Kishu Gomes said earlier in the week that it had taken an average of 13 months for other countries to recover from similar events.

He said in the first week of May about 1,700 tourists were arriving daily, compared to about 4,200 a day last May or a 60 percent fall from a year earlier. Gomez said Sri Lanka may be able to end the year with a 30 percent downturn if no new attacks take place.

Amaratunga however said that a recovery was already underway and arrivals were improving daily.

"Tourist arrivals are continuing to rebound faster than expected," he said. "In fact, 2,000 tourists continue to arrive on a daily basis."

"People who want to come are observing and watching to see how the situation is, so if nothing happens over the next few days or weeks it will bounce back."

"Some of the airlines confessed that bookings for June and July have not taken place."

So far, 37 countries have issued travel advisories to their citizens on travelling to Sri Lanka.

Amaratunga said the government is in talks with ambassadors to lift these advisories, but they had informed that more time is needed to evaluate the situation.

He said global tourism hubs recovered fast after terror attacks.

"New York, Boston, London, Paris, Frankfurt, Madrid, Istanbul, Mumbai, Tokyo and Auckland have all been victims of terror attacks."

"These places have bounced back in a short period of time, and I don’t see how this is any different here, now that all the culprits have been arrested."

Amaratunga said Sri Lanka’s military top brass have assured of continued safety, while the government has approved a tourism insurance scheme for visitors.

Sri Lanka’s police and government had failed to act on warnings by India that a churches would be attacked by an extremist Muslim group. However the police and military had since arrested most of those directly linked to the attacks.

"Sri Lanka is open for business," Amaratunga said. "I’m quite confident that the message can be sent around. We still have seven months to capitalize on the global recognition bestowed by Lonely Planet."

"The tourism industry has seen darker days in the past," he said, referring to a 30-year civil war which ended in 2009 and started the tourism boom of the past decade.

Middle East based Islamic State has claimed responsibility for attacks carried out by local extremist Muslim organizations which apparently had links to the group, killing over 250 people in Churches and hotels, including tourists.

Sri Lanka has already banned two organizations, National Thowheed Jamath and Jamathei Millathu Ibraheem, which have links to Islamic state killed over over 250 people in co-ordinated bombings on Easter Sunday.

Gomes had declined to comment on the damage the security lapses and the immediate behaviour of the politicians had caused on the confidence of tourists on Sri Lanka.

The attacks took place at the start of Sri Lanka’s off-season for tourism, which runs from May to June and September to November. (Colombo/May13/2019)

Sri Lanka’s Standard Capital exits loss-making paints subsidiary for nominal Rs1650

ECONOMYNEXT — Sri Lanka listed investment company Standard Capital PLC has disposed of its entire stake in subsidiary Standard Paints (Pvt) Ltd for a nominal consideration of 165 rupees, saying the move would improve its financial position as the subsidiary carried a negative equity value.

In a disclosure to the Colombo Stock Exchange, Standard Capital said its board had previously decided on August 24, to either strike off the subsidiary or dispose of its equity stake for a nominal value.

The company subsequently sold its holdings in Standard Paints on September 28, comprising a 65 percent stake represented by 6.5 million ordinary voting shares and 100 percent of the subsidiary’s 10 million preferential shares.

The shares were disposed of for a total consideration of 1650 rupees. (Colombo/Oct14/2026)

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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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