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Friday October 16th, 2026

Sri Lanka police chief ticked off over insulting minister

ECONOMYNEXT – Sri Lanka’s new Inspector-General Pujith Jayasundara has been ticked off by Prime Minister Ranil Wickremesinghe over two incidents where he is alleged to have embarrassed political authorities.

Jayasundara, who was appointed in April by a divided Constitutional Council, was called in for a meetig with some of his senior officers to Wickremesinghe’s Temple Trees residence on Wednesday for a pep-talk, official sources said.

Wickremesinghe was irked over the omitting of minister Sagala Ratnayake and Northern Province Chief Minister C. V. Vigneswaran from a plaque marking the opening of a new police complex in Jaffna on September 9.

While leaving Ratnayake out at a function graced by President Maithripala Sirisena was embarrassing to the president who pointed out the shortcoming to the police chief.

More than that, what really upset the administration was the police chief leaving out the northern CM’s name at a time when the government was working closely with the provincial administration to push reconciliation.

Raising the level of police presence in Jaffna had been a request of Vigneswaran and leaving his name out was seen as crass at best and hostile at worst. Either way, the police action showed insensitivity.

Both the President and the Prime Minister were also upset that Minister Ratnayake was relegated to a seat next to Jayasundara’s wife at the 150th police anniversary celebrations in Colombo.

Protocol dictated that the minister be placed next to the President, but that was not the case. The government was also angered by Jayasundara’s plan for lavish spending for catering and other matters relating to the anniversary celebrations.

Jayasundara’s remarks that he could bend the law had also upset the cabinet which has discussed his conduct in an uncomplimentary manner, a senior minister said.

However, the government is unable to get rid of Jayasundara, 56, who could in theory continue for another four years unless he on his own decides to step down.

The Prime Minister had summoned Wednesday’s meeting ostensibly to discuss the rising level of crime in the country, but the thrust of his message was the displeasure with the police chief over alleged snubbing of politicians. (COLOMBO, Sept 15, 2016)
 

Sri Lanka rupee at 331.15/25 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee was quoted flat at 331.15/25 to the US dollar in the spot market on Friday, while bond yields were steady, dealers said.

A bond maturing on 15.10.2028 was quoted flat at 10.60/70 percent.

A bond maturing on 15.06.2029 was quoted at 10.95/11.05 percent.

A bond maturing on 15.10.2030 was quoted at 11.41/45 percent, up from 11.40/45 percent.

A bond maturing on 01.12.2031 was quoted at 11.65/73 percent, up from 11.65/70 percent.

A bond maturing on 15.12.2032 was quoted at 11.75/90 percent, up from 11.75/85 percent.

A bond maturing on 15.01.2033 was quoted at 11.85/95 percent, up from 11.95/12.00 percent.

A bond maturing on 15.10.2034 was quoted flat at 12.20/30 percent.

The telegraphic transfer rate for the dollar was 326.70 buying, 335.70 selling; the euro was 363.6850 buying, 377.4658 selling; pound was 432.5942 buying, 446.7026 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.56 percent, or 111.97 points, at 20,083; while the S&P SL20 was up 0.63 percent, 35.68 points, at 5,734. (Colombo/Oct16/2026)

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Sri Lanka services expands at slower rate in September 2026: PMI

ECONOMYNEXT – Sri Lanka’s services sector expanded at a slower rate in September 2026, according to a Purchasing Managers Index compiled by the central bank, which registered an index value of 60.5, compared to 65.6 the previous month.

“Business Activity increased in September 2026, reflecting improvements across several sub-sectors, led by financial services, with notable contributions from education and professional services,” CBSL said.

New businesses increased in September 2026, registering 60.9 from August’s 60.0, due to the expansion in the financial services, with positive contributions from the insurance, education, professional, and other personal services sub-sectors.

Employment increased in September, “as firms across several sectors increased recruitment to meet operational needs and support business expansion”.

Backlogs of Work declined in the month, although at a slower rate compared to the previous month.

Broader global economic uncertainties continued to pose downside risks to the outlook, CBSL said. (Colombo/Oct15/2026)

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Sri Lanka manufacturing PMI steady at 53.0 in September, growth continues

ECONOMYNEXT – Sri Lanka’s manufacturing sector expanded at a steady rate in September 2026, registering a value of 53.0 on a Purchasing Managers Index compiled by the central bank, same as the previous month.

“This indicates that manufacturing activities continued to expand at a similar pace during the month,” CBSL said, noting the outlook remains positive, driven largely by optimism on year-end seasonal demand.

The New Orders sub-index expanded in the month, registering 51.0, attributed to positive developments in both the food and beverages and textiles and wearing apparel manufacturing sectors.

The Production sub-index also registered 51.0, for the same reason.

The Employment sub-index expanded at a slower pace, registering 52.6, from the previous 54.8.

The Stock of Purchases sub-index moderated towards the neutral threshold, “indicating broadly unchanged inventory levels during the month,” CBSL said.

Suppliers’ Delivery Times sub-index remained lengthened in September. (Colombo/Oct15/2026)

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Sri Lanka rupee closes at 331.15/25 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee closed flat at 331.15/25 to the US dollar in the spot market on Thursday, while bond yields closed steady, dealers said.

A bond maturing on 01.08.2030 closed flat at 11.35/40 percent.

A bond maturing on 15.10.2030 closed at 11.40/45 percent, up from 11.37/43 percent.

A bond maturing on 01.02.2031 closed flat at 11.45/50 percent.

A bond maturing on 15.12.2032 closed flat at 11.75/85 percent.

A bond maturing on 15.10.2034 closed at 12.20/30 percent, up from 12.12/20 percent. (Colombo/Oct15/2026)

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Sri Lanka’s Sampath Bank to raise Rs10bn in debenture sale

ECONOMYNEXT – Sri Lanka’s Sampath Bank plans to raise 10 billion rupees through the issuance of Basel III-compliant debentures, it said in a market filing.

Up to 100 million listed, rated, unsecured, subordinated, redeemable 5-year (2026/ 2031) and 7-year (2026/ 2033) instruments will be offered at 100 rupees each.

The proposed instruments will carry a non-viability conversion feature, the company said.

Initially 70 million debentures will be issued, and another 30 million in the event of an oversubscription of the initial issue.

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

The issue has received CSE approval.

The subscriptions list opens on October 20. (Colombo/Oct15/2026)

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Sri Lanka sells extra Rs7.2bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 7,206 million rupees of treasury bills offered on tap at average rates of 9.30 percent, 9.44 percent and 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 73.332 billion rupees.

Total market subscription was 7,206 million rupees.

The debt office sold a 3-month bill at 9.30 percent.

The debt office sold a 6-month bill at 9.44 percent.

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

On Wednesday (14) the debt office raised 66.12 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

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Sri Lanka Treasury bill yields rise on shorter term, less bills sold

The settlement date is October 16. (Colombo/Oct15/2026)

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