ECONOMYNEXT – Sri Lanka’s Treasury bill yields dipped across maturities at Monday’s auction, with all offered 120 billion rupees of bills sold, data from the Public Debt Management Office showed.

The 3-month bill was down 16 basis points at 9.06 percent, with all 50 billion rupees offered sold.

The 6-month bill was down 16 basis points at 9.44 percent, with all 35 billion rupees offered sold.

The 12-month bill was down 2 basis points 9.89 percent, with all 35 billion rupees offered sold.

All 3 bills are available on tap. (Colombo/Aug24/2026)

ECONOMYNEXT – The expansion in new active credit cards in Sri Lanka accelerated in May compared to a month ago, while it slowed in June on a monthly basis, official data showed, amid Central Bank tightening monetary policy in May.

New active credit cards in May recorded an increase of 25,720, nearly double of 12,999, but they rose by 14,139, slowing from the previous month.

The total number of active credit cards reached  2,268,712 by the end of June, compared to 2,224,852 by the end of April, showing a 2 percent increase for two months.

The number expanded by 4.7 percent (102,526) in the first six months of this year.

Active credit cards rose 7.8 percent (157,730) in 2025, following a 4.8 percenbnt (91,371) rise in 2024. This growth was driven by the island nation’s economic recovery and strong credit card promotions amid falling interest rates.

Analysts have said most banks have tied up with super markets and other vendors to promote credit cards in the falling interest rate regime as the country’s economy has shown more-than-expected recovery.

However, they cited the June slowdown in the expansion compared to May due to the Central Bank’s 100 basis point policy rate hike. With the tight monetary policy and fuel rationing since March, people may not be spending as much as they spent before that, analysts said.

Sri Lanka’s economic recovery and stability have helped customers to use more credit since 2023.

Some analysts noted that higher interest (penalty) rates on credit cards had prompted some users to cancel their cards after the economic crisis and those same customers might now be actively using the cards due to declining rates.

With the Central Bank’s latest policy rate hike, analysts expect a slowdown in new active credit cards amid an expected increase in the penalty rate.

Active credit cards fell 1.8% (39,991) in 2023 after the country declared bankruptcy in 2022 amid an unprecedented hike in the Central Bank’s monetary policy rates.

The central bank sharply increased interest rates in April 2022 to fight hyperinflation.

However, the inflation slowed to a deflation September 2024 before turning to positive in August last year amid the central bank’s reduction of key policy rates eight times since June 2023.

The Central Bank’s policy tightening cycle started after the inflation jumped in April following sharp rupee depreciation and higher inflation following the fuel price hikes. (Colombo/August 24/2026)

ECONOMYNEXT – Sri Lanka’s Public Utilities Commission (PUCSL) has approved a new feed-in tariff (FIT) structure for renewable energy projects and rooftop solar prosumers, and set purchase rates for battery storage systems.

The tariffs apply to small-scale renewable plants under 10 megawatts (MW), domestic prosumers, and projects equipped with Battery Energy Storage Systems (BESS).

“This tariff structure is designed not merely as a pricing schedule, but as a strategic mechanism to ensure the long-term sustainability and resilience of the electricity sector,” PUCSL Chairman Lalith Chandradasa said.

The regulator has directed the National System Operator to integrate 450 MW of battery storage capacity into the grid to address a projected power deficit in the first quarter of next year resulting from rising electricity demand and seasonal hydro fluctuations.

Feed-in Tariffs for Renewable Energy Power Plants (<10 MW)

The tariff structure for utility-scale plants under 10 MW splits payments into a fixed non-escalable component, an annually adjusted operation and maintenance (O&M) component, and specific fuel cost allowances.

Feed-in Tariffs for Rooftop Solar Prosumers

Tiered tariffs have been set for domestic and commercial rooftop solar installations, with premium nighttime rates established for systems above 250 kW paired with battery storage.

Feed-in Tariffs for New Power Plants (<10 MW) with Battery Storage

For new standalone ground-mounted and floating solar power plants installed with battery systems, separate tariffs have been approved for daytime supply and prioritized nighttime supply.

Nighttime battery tariffs were restricted to systems above 250 kW due to technical grid control limits, safety standards, and because import duties are currently waived only for larger battery installations. The PUCSL noted it is in talks with the Ministry of Finance to extend tax concessions to smaller units.

“By reducing thermal generation dependency and integrating more storage systems into the network, the Commission aims to stabilize electricity tariffs against volatile fuel markets,” Chandradasa said.

The commission has also ordered utilities such as the Ceylon Electricity Board (CEB) and LECO to publish monthly transformer capacities and permit consumers to connect systems under a ‘Zero Export’ model for self-consumption when grid capacity is fully congested. (Colombo/Aug24/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Monday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.34 percent.

The ASPI was down 71.84 points at 21,344.77, while the more liquid S&P SL20 was down 0.18 percent, or 10.79 points, at 6,017.30.

Positive contributors to the ASPI were CT Holdings (up 4.91 percent at 550.50 rupees), Haycarb (up 3.92 percent at 185.75 rupees), John Keells Holdings (up 0.51 percent at 19.90 rupees), and Ceylon Grain Elevators (up 2.05 percent at 486.00 rupees).

Commercial Bank of Ceylon (down 0.86 percent at 202.00 rupees), Melstacorp (down 1.04 percent at 190.00 rupees), Ceylon Tobacco Company (down 1.67 percent at 1,799.25 rupees), and DFCC Bank (down 1.37 percent at 126.25 rupees) were top negative contributors.

Market turnover reached 16.85 billion rupees. Food & Staples Retailing led turnover with 15.79 billion rupees.

CT Holdings and its flagship subsidiary Cargills (Ceylon) saw massive stake divestments. CT Holdings saw 20.14 million shares (10 percent) divested at 575.00 rupees per share, closing up 4.91 percent at 550.50 rupees.

Meanwhile, Cargills (Ceylon) saw 6 million shares (3 percent) sold at 700.00 rupees per share, closing down 0.80 percent at 680.75 rupees. (Colombo/August24/2026)

ECONOMYNEXT – Sri Lanka’s CT Holdings and its subsidiary Cargills (Ceylon), saw a sale of 10 percent and 3 percent of shares respectively, brokers said. 

CT Holdings saw 20.14 million shares divested at 575 rupees per share, while Cargills (Ceylon) saw 6 million shares sold at 700 rupees per share.

The transaction was advised and executed by Asia Securities.

This transaction, at a total of over 15 billion rupees, is the largest transaction for 2026, and brought the total turnover to 16.85 billion rupees today. 

The previous largest transaction for the year was a 9 billion rupee sale of Commercial Credit & Finance shares on August 6.

“Even in a global turmoil scenario, there are investors will to invest at high value, shows that the market has strengthened. It’s a good sign that investors are willing to get large stakes because that means they’re in for the long run,” Raynal Wickremeratne, Head of Research and Strategy, NDB Securities, said about the recent high value sales that took place on the CSE. 

CT Holdings shares closed up 4.91 percent at 550.50 rupees.

Cargills (Ceylon) shares closed down 680.75 rupees, down 0.80 percent. (Colombo/August24/2026)