An Echelon Media Company
Friday August 28th, 2026

Sri Lanka stocks rise 1-pct on financial, construction shares

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange (CSE) recovered some of its losses on Tuesday, data on its site showed.

Market recovered after it plunged to a two-month low on Monday as cyclone Ditwah weighed down market sentiment.

The broader All Share Price Index (ASPI) closed 1 percent, or 219.51 points up at 22,241.57 while the more liquid S&P SL20 index closed 0.85 percent, or 51.92 points higher, at 6,137.79.

Investor interest was seen in diversified financials and selected shares on Tuesday.

Top contributors to the ASPI were Richard Pieris and Company (up 3.90 rupees at 40.80 rupees), Ceylinco Holdings (up 178.75 rupees at 3,199.25 rupees), Sampath Bank (up 3 rupees at 143.00 rupees), Bukit Darah (up 75.50 rupees at 1,095.50 rupees), and NDB (up 4 rupees at 144.50 rupees).

Construction sector shares continued to attract investor interest due to possible reconstructions following the widespread damage caused by Cyclone Ditwah.

Tokyo Cement (Lanka) closed 3 rupees higher at 101.00, Sierra Cables traded 90 cents stronger at 32.90 rupees, Kelani Cable rose 39.25 rupees to 1,178.75 and ACL Cables was 9.75 rupees stronger at 234.75.

Market turnover fell from 5.2 billion rupees to 4 billion rupees while the share volume was 100,332,235.

Equity markets in Asia traded mixed as most nations are suffering from a series of natural disasters.

Japan’s Nikkei 225 index ended flat “as bargain-hunting following the previous day’s plunge was offset by selling on concerns about higher borrowing costs due to rising bond yields amid speculation that the Bank of Japan may raise interest rates this month,” Japan’s Mainichi newspaper said.

The index closed 0.17 percent marginally higher at 49,303.45 on Tuesday.

Pakistan’s equity market dropped amidst “political tension over KP governor’s rule”, Daily Times said. Even though the index traded in the positive territory in the early trade, index dipped 0.18 percent to 167,757.18 on open.

“Signs of political turbulence have intensified as the federal government hinted at imposing governor’s rule in PTI-led Khyber Pakhtunkhwa amid a deteriorating law and order situation driven by rising terrorist attacks,” Daily Times said.

“India’s equity benchmarks fell on Tuesday, dragged by profit-taking in financials, as the blue-chip indexes paused near record highs for a fourth straight session,” Reuters said.

Its Nifty 50 index moved 0.55 percent lower to close at 26,032.20, while the BSE Sensex traded 0.59 percent weaker at 85,138.27.

As at 3.45 p.m Sri Lankan time, spot gold was trading at 4,190.48 US dollars, up 1.20 percent. (Colombo/Dec02/2025)

ADB responds to Nepal floods with $5mn grant

KATHMANDU, NEPAL (28 August 2026) — The Asian Development Bank (ADB) has approved a $5 million emergency grant to fund urgent rescue and relief operations after devastating floods and debris flows struck communities along the Bhotekoshi and Trishuli river systems on 26 August.

“This $5 million grant is a promise kept,” said ADB President Masato Kanda. “When people in our member countries need us, we will be there for them. Families along these rivers have lost loved ones, homes, and the basic services their communities need. Help cannot wait. The losses are devastating and are still being counted but this will help get food, safe water, shelter, medicine, and other urgent support to people who need it now. When disaster strikes, ADB moves.”

The disaster has caused widespread loss of life, injuries, displacement, and severe damage to homes, infrastructure, and essential services in Rasuwa, Nuwakot, and Dhading districts. The Government of Nepal has declared the affected areas disaster crisis-affected zones and is leading large-scale response operations. Search and rescue operations and assessments of the damage and community needs are continuing.

The grant, financed through ADB’s Asia Pacific Disaster Response Fund, will help pay for search and rescue equipment, medical supplies, food, safe drinking water, temporary shelter, sanitation and hygiene supplies, debris clearance, emergency stabilization work, and logistical support.

ADB is working closely with the Government of Nepal, including the National Disaster Risk Reduction and Management Authority, United Nations agencies, and development partners to assess the changing situation and support the country’s response and recovery.

ADB is processing up to $150,000 through a second window of the disaster response fund to support a post-disaster needs assessment, recovery planning, and preparation for possible recovery and reconstruction investments. At the government’s request, the assessment will measure damage and losses, identify needs across affected sectors, and help set priorities for recovery and reconstruction.

ADB has long supported Nepal’s efforts to reduce disaster risks and withstand through stronger infrastructure, institutions, and emergency preparedness. ADB will continue working with the government and people of Nepal through the emergency response and the recovery and reconstruction that follow.

Continue Reading

Gen Z knows AI better than other generations, and treats it as a friend: Kaspersky

ECONOMYNEXT – According to Kaspersky’s latest research, Gen Z is the most active generation of AI users in Asia Pacific (APAC). Half use AI every day or almost every day, while one in three already interact with it as they would with a friend.

For many Zoomers, AI has already become part of their daily routine. Half of Gen Z respondents (50%) in APAC use AI every day or almost every day – the highest share across all the demographic groups. Among them, 57% use it for searching for information, 54% for studying, and 50% for generating ideas.

However, Gen Z is not only using AI as a practical tool. Nearly a third of APAC Gen Z respondents (32%) say they use AI as a friend – a higher proportion than among other generations. This behaviour is consistent across countries such as Indonesia (39%), Vietnam (35%), Thailand (34%), Malaysia (33%) and India (32%).

This points to an emerging shift in the role of artificial intelligence, from a technology consulted for specific tasks to one that some users may also turn to for conversation, emotional support or companionship.

The use of AI for personal matters reflects how naturally conversational systems fit into Gen Z’s digital habits.

According to the survey, 34% of Gen Z respondents in the region use AI to discuss personal issues they would rather not share with other people. Vietnam recorded the highest percentage at 42%, followed by India (37%) and Indonesia (36%).

This may make AI feel private and emotionally supportive, but it is not a human friend: its responses can be inaccurate or inappropriate, and users may disclose sensitive information more freely than they would on an ordinary online service.

High reliance does not always mean safe AI use

Despite Gen Z’s high level of online activity and confidence, many respondents underestimate the risks associated with artificial intelligence.

While 45% of Gen Z respondents in APAC say they consistently take protective measures when interacting with AI services, more than half (51%) only apply precautions occasionally.

This inconsistency is particularly evident in Malaysia, where 54% of respondents say they take precautions only occasionally, the second-highest proportion among the APAC markets surveyed after China (60%), while Indonesia recorded the lowest proportion at 43%.

These protective measures can be as simple as checking information against other reliable sources and avoiding the disclosure of confidential or sensitive data.

This is particularly important as AI becomes involved in education, communication and personal decision-making.

Incorrect information generated by an AI system may affect academic work or everyday choices, while information shared in a conversation may include personal documents, passwords, financial details, health-related information or private messages.

The more personal the interaction becomes, the more important it is for users to remember that information entered into an AI service should automatically be treated as non-confidential.

Safe AI habits should develop alongside AI skills

To use AI more safely, people should verify important information rather than rely on a single generated response.

This is especially important for educational, financial, legal, medical or other sensitive topics where an inaccurate answer may have serious consequences.

Users should also avoid sharing passwords, payment details, identity documents, private correspondence and other confidential information with AI services. Before using a new platform, it is important to understand what data it collects and how that information may be processed or stored.

A comprehensive security solution such as Kaspersky Premium can help protect devices against phishing, malware and fraudulent websites that may imitate legitimate AI platforms or promote fake AI tools.

It can also provide an additional layer of protection as users explore new digital services.

Developing broader cybersecurity skills is equally important. Kaspersky Academy’s “Cyberhygiene” course helps users understand common digital risks and build practical habits for protecting accounts, devices and personal information.

These skills are becoming increasingly relevant as AI tools are integrated into studying, work and everyday communication.

Specifically for Gen Z, Kaspersky has launched an interactive online game, “Case 404”.

In this cyber-detective adventure, players dive into fictional cases inspired by real digital threats, learning how to spot scams, phishing attempts and sophisticated fraud attempts.

With “Case 404”, Kaspersky isn’t just raising awareness — it’s equipping players with the mindset and skills to stay secure while doing what they love.

“Gen Z understands emerging AI trends better than other generations and is already finding new ways to integrate the technology into studying, communication and everyday life. The fact that some young people now use AI as a friend shows how quickly the relationship between users and technology is changing,” said Vladislav Tushkanov, Group Manager at Kaspersky AI Technology Research Centre.

“However, an interaction that feels personal should not be mistaken for a private or fully reliable conversation. Young users need to combine their confidence and curiosity with habits such as checking information, protecting personal data and thinking critically about the responses they receive.”

“What stands out about the survey is how naturally AI has become part of the younger generation’s everyday lives. When one in three Gen Z users in APAC already sees AI as a friend, it is clearly becoming more than just a tool. As that relationship becomes more personal, knowing what to trust, what to share and where to draw the line will be key to using AI safely and responsibly,” said Adrian Hia, Managing Director for Asia Pacific at Kaspersky.

*The study was conducted by Kaspersky’s market research centre in March 2026. 7,200 respondents from 18 countries (Brazil, China, Colombia, Egypt, France, Germany, India, Indonesia, Italy, Malaysia, Mexico, Russia, Saudi Arabia, Spain, South Africa, Thailand, Turkey, Vietnam) took part in the survey.

Continue Reading

Sri Lanka rupee closes at 327.98/328.04 to US dollar spot, bond yields down

ECONOMYNEXT – Sri Lanka’s rupee closed at 327.98/328.04 to the US dollar in the spot market on Friday, stronger from 328.50/60 Tuesday, while bond yields closed down, dealers said.

A bond maturing on 15.02.2028 closed at 9.90/10.00 percent, down from 10.00/10 percent.

A bond maturing on 15.12.2029 closed at 10.25/30 percent, down from 10.35/45 percent.

A bond maturing on 15.10.2030 closed at 10.50/55 percent, down from 10.55/62 percent.

A bond maturing on 01.02.2031 closed at 10.62/67 percent, up from 10.62/65 percent.

A bond maturing on 15.12.2032 closed at 10.95/11.05 percent, down from 11.15/25 percent.

A bond maturing on 01.11.2033 closed at 11.25/35 percent, down from 11.35/45 percent.

A bond maturing on 15.10.2034 closed at 11.50/55 percent, down from 11.55/60 percent.

A bond maturing on 15.08.2036 closed at 11.77/80 percent, down from 11.85/90 percent.

A bond maturing on 01.07.2037 closed at 11.80/92 percent, down from 11.85/95 percent. (Colombo/Aug28/2026)

Continue Reading

Sri Lanka stocks close higher with ASPI up 0.20-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Friday, with its benchmark index moving 0.20 percent, CSE data showed.

The All Share Price Index closed up 43.21 points at 21,322.86; while the S&P SL20 closed up 0.34 percent, or 20.37 points, at 6,015.18.

Market turnover was 2.2 billion rupees.

Top positive contributors to the ASPI were Cargills (up 28 rupees at 678.50), Hayleys (up 2.50 rupees at 229.25), NTB (up 7 rupees at 313), Haycarb (up 6.50 rupees at 197.25) and Commercial Bank (up 1 rupee at 203).

Sampath Bank (down 1.75 rupees at 138.25) led negative contributors.

Raigam Wayamba Salterns announced a 25 cent dividend per share.

Mahaweli COconut Plantations announced a dividend of 3 rupees per share.

Arcasia Investment & Trading (Pvt) Ltd and ATX Partners (Pvt) Ltd said its voluntary offer to buy shares of Industrial Asphalts will be converted into a mandatory offer after two major shareholders (Ramanan Govindasamy and Srikumar Balasubramaniyam) agreed to sell their shares totaling 50.16 percent. (Colombo/Aug28/2026)

Continue Reading

Fitch rates DFCC Bank’s proposed Basel III debt BBB+(lka)

Fitch Ratings – Colombo/Singapore: Fitch Ratings has assigned DFCC Bank PLC’s (A(lka)/Stable) proposed Basel III-compliant subordinated unsecured debentures of up to LKR12.5 billion a final National Long-Term Rating of ‘BBB+(lka)’.

The proposed debentures will mature in five years and will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to strengthen its Tier 2 capital base and to support balance sheet growth.

The bank expects the proposed debentures to qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause whereby 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 20 July 2026 and follows the receipt of documents conforming to information already received.

Key Rating Drivers

DFCC’s Sri Lankan rupee-denominated subordinated debt is rated two notches below the bank’s National Long-Term Rating anchor. This reflects our baseline notching for loss severity on this type of debt and expectations of poor recoveries. There is no additional notching for non-performance risk, as the notes do not incorporate going-concern loss-absorption features.

We use DFCC’s National Long-Term Rating as the anchor for this instrument, because it reflects the bank’s standalone financial strength and best indicates the risk of the bank becoming non-viable.

We reviewed DFCC’s ratings with no rating action on 8 September 2025. See our latest rating action commentary, Fitch Upgrades 10 Sri Lankan Banks’ National Ratings and Affirms Five after Scale Recalibration, published on 21 January 2025, 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.

Continue Reading

Sri Lanka stocks up at midday; Capital goods lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trading higher at Friday midday, with the benchmark All Share Price Index moving up 0.20 percent.

The ASPI was up 43.29 points at 21,322.94, while the more liquid S&P SL20 was up 0.31 percent, or 18.37 points, at 6,013.18.

Market turnover stood at 347 million rupees, with Capital Goods leading the turnover generating 93.7 million rupees.

Positive contributors pushing the market up were Nations Trust Bank (up 2.61 percent or 8.00 rupees at 314.00 rupees), Haycarb (up 3.80 percent or 7.25 rupees at 198.00 rupees), Dialog Axiata (up 1.08 percent or 0.50 rupees at 46.90 rupees), and R I L Property (up 0.84 percent or 0.20 rupees at 24.10 rupees).

Hatton National Bank (down 0.46 percent or 1.75 rupees at 380.00 rupees), Melstacorp (down 0.26 percent or 0.50 rupees at 190.00 rupees), and Sampath Bank (down 0.36 percent or 0.50 rupees at 139.50 rupees) were among the notable drag items.

Arcasia Investment & Trading and ATX Partners announced the conversion of their voluntary offer to a mandatory offer for Industrial Asphalts (Ceylon) under the Company Takeovers and Mergers Code.

The offerors received acceptances totaling 1,880,693,010 shares (50.16% shareholding), including 48.03% from Mr. Ramanan Govindasamy and 2.13% from Mr. Srikumar Balasubramaniyam on August 24, 2026.

Continue Reading