ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange opened higher on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.21 percent.

The ASPI was up 41.16 points at 19,759.08, while the more liquid S&P SL20 was down 0.10 percent, or 5.41 points, at 5,613.07.

Positive contributors to the ASPI were Richard Pieris and Company (up 3.15 percent at 26.20 rupees), Dialog Axiata (up 1.18 percent at 42.90 rupees), and Vallibel Finance (up 1.06 percent at 76.50 rupees).

Commercial Bank of Ceylon (down 0.13 percent at 196.00 rupees), Hayleys (down 1.60 percent at 215.00 rupees), Hatton National Bank (down 0.20 percent at 370.50 rupees), and Overseas Realty (Ceylon) (down 0.42 percent at 47.80 rupees) were top negative contributors.

Market turnover was 296.44 million rupees. Banks led turnover with 127.96 million rupees. (Colombo/Oct23/2026)

ECONOMYNEXT – Sri Lanka’s rupee was quoted weaker at 332.35/42 to the US dollar in the spot market on Friday, from 332.20/35 the previous day, while bond yields were steady, dealers said.

A bond maturing on 15.09.2029 was quoted flat at 11.05/15 percent.

A bond maturing on 01.08.2030 was quoted at 11.50/58 percent, down from 11.55/60 percent.

A bond maturing on 01.02.2031 was quoted at 11.70/80 percent, from 11.73/78 percent.

A bond maturing on 01.12.2031 was quoted at 11.85/12.00 percent, down from 11.90/12.00 percent.

A bond maturing on 15.12.2032 was quoted flat at 12.00/10 percent.

A bond maturing on 15.01.2033 was quoted flat at 12.20/25 percent.

A bond maturing on 15.10.2034 was quoted at 12.45/50 percent, up from 12.40/50 percent.

The telegraphic transfer rate for the dollar was 327.75 buying, 336.75 selling; the euro was 364.8954 buying, 378.6762 selling; pound was 437.9916 buying, 452.1000 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.34 percent, or 67.54 points, at 19,785; while the S&P SL20 was up 0.39 percent, 22.14 points, at 5,640. (Colombo/Oct23/2026)

ECONOMYNEXT – Sri Lanka must sustain macroeconomic stability through productivity-enhancing reforms, stronger export competitiveness and higher investment if it is to achieve durable long-term growth and return to its pre-crisis trajectory, a Colombo-based think tank has said.

While the island’s recovery from its economic crisis has been encouraging, growth remains vulnerable to external shocks, weak competitiveness and low investment, researchers and economists of the Institute of Policy Studies (IPS) said at a roundtable discussion on its publication, Sri Lanka State of the Economy 2026.

Sri Lanka would need average annual growth of about 8.3 percent between 2026 and 2030 to regain its pre-crisis growth path, exceeding the government’s medium-term target of 7 percent growth, IPS Research Fellow Asanka Wijesinghe said.

Sri Lanka’s economy expanded 4.2 percent in the second quarter of 2026, supported by a pickup in investment, but rising imports and higher global fuel prices have widened external sector pressures, he said.

Wijesinghe warned that growth driven largely by domestic demand would be insufficient and stressed the need to expand exports to support higher growth.

He said Sri Lanka’s export competitiveness is under pressure as competing economies negotiate preferential trade agreements with key markets.

Indonesia’s access to the European Union market and India’s trade agreement with the United Kingdom could erode Sri Lanka’s relative position, while any loss of existing trade preferences such as GSP+ would further weaken competitiveness.

To address these risks, Sri Lanka should accelerate tariff reforms, simplify its tariff structure and secure more predictable market access abroad, while providing support for industries and small firms adjusting to increased competition, he said.

IPS Research Fellow Lakmini Fernando said fiscal policy must move beyond crisis stabilisation and support long-term growth by increasing productive investment.

She noted that government capital expenditure had fallen to historically low levels during the adjustment period and said achieving 7 percent growth could require gross fixed capital formation equivalent to between 30 and 42 percent of GDP, depending on investment efficiency.

Fernando called for greater investment in education, healthcare, skills development, social protection, climate-resilient infrastructure and green projects, alongside reforms to public financial management and procurement systems.

She also stressed the need to maintain debt sustainability through stronger fiscal institutions, adherence to a medium-term debt management strategy and continued engagement with international financial institutions.

Central Bank Deputy Director of Economic Research Yashodha Senadheera said monetary policy has limited ability to directly offset supply-side shocks but may need to respond when such shocks create persistent inflationary pressures or threaten inflation expectations.

Asian Development Bank Senior Country Economist Liliya Aleksanyan said Sri Lanka should improve energy security through renewable energy investments and diversify exports towards Asian markets such as India while maintaining access to traditional destinations in Europe and the United States.

Sampath Bank Senior Economist Sanjaya Ariyawansa highlighted the need to improve tax administration, broaden the tax base by integrating more small and medium enterprises into the formal system and strengthen fiscal oversight.

He warned that climate-related risks could have significant implications for agriculture, energy, public finances and financial sector stability.

Participants at the discussion said stronger institutions, improved implementation capacity and better utilisation of public investment allocations would be critical to translating policy recommendations into sustained growth.

The economists said durable economic expansion would require coordinated reforms in macroeconomic management, trade policy, public investment, fiscal governance and climate resilience, while maintaining policy consistency amid continued domestic and global uncertainties. (Colombo/Oct22/2026)

ECONOMYNEXT – Sri Lanka’s rupee closed weaker at 332.20/35 to the US dollar in the spot market on Thursday, from 331.90/332.05 the previous day, while bond yields closed steady to higher on selected tenors, dealers said.

A bond maturing on 15.09.2029 closed flat at 11.05/15 percent.

A bond maturing on 01.08.2030 closed at 11.55/60 percent, up from 11.50/60 percent.

A bond maturing on 15.10.2030 closed at 11.60/70 percent, up from 11.55/65 percent.

A bond maturing on 01.12.2031 closed at 11.90/12.00 percent, up from 11.80/90 percent.

A bond maturing on 15.01.2033 closed at 12.20/25 percent, up from 12.13/18 percent.

A bond maturing on 15.10.2034 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Oct22/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Thursday, CSE data showed, with the benchmark All Share Price Index falling 1.05 percent.

The ASPI was down 209.38 points at 19,717.92, while the more liquid S&P SL20 fell 0.68 percent, or 38.43 points, to 5,618.48.

Positive contributors to the ASPI were Ceylon Tobacco Company (up 0.67 percent at 1,795.50 rupees), The Kandy Hotels Company (up 7.77 percent at 11.10 rupees), Asia Asset Finance (up 3.89 percent at 42.70 rupees), and Resus Energy (up 5.06 percent at 8.30 rupees).

Distilleries Company of Sri Lanka (down 3.60 percent at 50.90 rupees), Hatton National Bank (down 1.20 percent at 369.75 rupees), Dialog Axiata (down 0.93 percent at 42.40 rupees), Singer Sri Lanka (down 3.67 percent at 68.20 rupees), and Commercial Bank of Ceylon (down 0.38 percent at 196.25 rupees) were top negative contributors.

Market turnover was 1.10 billion rupees. The banking sector led turnover with 249.91 million rupees, followed by capital goods with 240.14 million rupees. Crossings totaled 155.78 million rupees, coming from Sampath Bank (93.25 million rupees) and Commercial Credit and Finance (62.53 million rupees).

Asia Asset Finance plans to raise 2 billion rupees through an issuance of 20 million listed, rated, unsecured, senior, redeemable 5-year debentures priced at 100 rupees each, subject to regulatory approval.

Vallibel One PLC said it had increased its direct holding in The Fortress Resorts PLC to 49.93 percent after purchasing 34.74 million shares from concert parties Vallibel Leisure (Pvt) Ltd and Dhammika Perera, bringing its collective group holding alongside subsidiaries to 53.89 percent. (Colombo/Oct22/2026)

ECONOMYNEXT – Sri Lanka has sold 2,282 million rupees of treasury bills offered on tap at average rates of 9.32 percent, 9.44 percent and 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 82.893 billion rupees.

Total market subscription was 2,282 million rupees.

The debt office sold a 3-month bill at 9.32 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 (21) the debt office raised 80.61 billion rupees of 3, 6 and 12 month bills after offering 100 billion.

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

The settlement date is October 23. (Colombo/Oct15/2026)