An Echelon Media Company
Friday October 16th, 2026

Sri Lanka trade surplus in June as economy smashed to resurrect soft-peg

ECONOMYNEXT – Sri Lanka recorded a trade surplus in June official data show with private credit smashed to resurrect a soft-peg and a fuel credit line from India running out, but forex shortages persist amid money printing, forced dollar sales and forex sales.

Imports fell 26 percent to 1,226 million dollars in June while exports rose 23.9 percent to 1,249 million dollars, giving a trade surplus of 21 million US dollars with hardly any inflows to the government.

Expat workers remitted 274 million US dollars though official channels. In June there was an lockdown style scenario as the country ran out fuel due to forex shortages.

Non-oil imports collapsed 35.6 percent to 1,026 million US dollars.

Investments goods fell 46 percent to 234 million US dollars in a steep correction.

Consumer goods imports fell 53 percent to 176.5 million US dollars.

Intermediate goods imports were flat at 815.7 million dollars, marginally down 2.8 percent.

Fuel imports were flat at 200 million US dollars, with a credit line from India running out.

In the six months to June imports were flat at 10,028 million US dollars, and exports were up 14.3 percent.

The trade deficit was down to 3,514 million US dollars from 4,316 million US dollars.

The central bank has raised rates to smash private credit and the economy in a bid to restore its soft–peg broken by suppressed interest rates earlier.

In May and June private credit slowed sharply.

Related

Sri Lanka private credit negative in June 2022, Rs189bn printed

Sri Lanka is however still experiencing severe forex shortages at overall BOP despite the trade surplus with the central bank continuing contradictory money and exchange rate policies involving intervening with borrowed ACU dollars from India, sterilizing them and also imposing a surrender rule on an already-broken peg.

Banks are also settling foreign loans which are not being renewed.

Analysts had warned that it is extremely costly to try and restore a pegged exchange rate system with interest rates alone without floating. An attempt to float the currency was botched with a surrender rule and too low interest rates in March.

Bangladesh and India which also have soft-pegs are also facing forex pressure after cutting rates just as the economy and private recovered after Covid. Pakistan the second worst central bank in South Asia after Sri Lanka has two large central banks that re-financed Covid funds.

Sri Lanka’s Vidullanka secures $1.35mn mini hydro contract in Fiji

ECONOMYNEXT — Sri Lanka energy firm Vidullanka has received a Letter of Acceptance for a 1.35 million US dollar mini hydro Engineering, Procurement, and Construction (EPC) contract in Fiji, the company said in a market filing.

The contract was awarded by the Department of Energy under Fiji’s Ministry of Public Works, Meteorological Services and Transport.

Under the project scope, Vidullanka will execute the turnkey EPC works, covering the design, supply, installation, testing, and commissioning of a 100-kilowatt (kW) mini hydro facility located at Buca Village in Fiji.

“This contract marks Vidullanka PLC’s entry into the Pacific island region’s renewable energy sector, building upon the Group’s established track record of international EPC execution in South America (Guyana) and East Africa,” the company said.

The company had submitted its original bid for the tender on December 18, 2025, and received the official Letter of Acceptance dated October 13, 2026.

“The award further reinforces the Group’s strategy to diversify its revenue streams into foreign-currency-denominated EPC and specialized technical engineering service contracts,” the company stated.

Vidullanka said it will now complete the procedural and administrative formalities required under the tender conditions leading up to the execution of the formal agreement with the Fijian awarding agency.

The company added that further disclosures will be made to the Colombo Stock Exchange once the formal contracts are signed. (Colombo/Oct16/2026)

Continue Reading

US grants $17mn to modernise Colombo port digital systems

ECONOMYNEXT – The United States has announced a 17 million US dollar grant to modernise digital systems and maritime documentation at the Port of Colombo, the Sri Lanka Ports Authority (SLPA) said.

US Ambassador to Sri Lanka Eric Stern Meyer announced the grant during a visit to the Colombo port, following discussions with senior maritime officials and government ministers.

The funding is aimed at upgrading Sri Lanka’s Maritime Single Window and Port Community System, which manage documentation, regulatory clearances, and data sharing across the port.

“This funding will support the digital infrastructure used for maritime documentation, regulatory procedures, and information exchange among port stakeholders,” Ambassador Meyer said.

The planned digital upgrade is designed to improve coordination between the SLPA, Customs, terminal operators, shipping lines, and other key agencies involved in daily cargo handling.

“Better integration of maritime data and administrative processes will reduce paperwork, improve cargo clearance, and support more efficient vessel and cargo operations,” SLPA Chairman Parakrama Dissanayake said.

Modernising these core digital systems is vital to strengthening trade facilitation at the Port of Colombo, which operates as a primary transshipment hub in the Indian Ocean, officials noted. (Colombo/Oct16/2026)

Continue Reading

Sri Lanka’s Amana Takaful adds claim tracking, document submission on app

ECONOMYNEXT – Sri Lanka’s Amana Takaful Insurance has introduced live motor claim tracking and digital document submission through its mobile application to enhance customer transparency.

The updated platform features trilingual capabilities in English, Sinhala, and Tamil to improve accessibility across Sri Lanka.

The new Motor Claims Workflow lets customers track the status and progress of their motor claims through the app.

“This enables customers to remain informed at each stage of the process without having to rely solely on traditional follow-up channels,” the company said.

Customers can also digitally submit the documents required to support the settlement of their claims.

Necessary supporting documents can be uploaded through the mobile app.

“By combining real-time visibility into the claims journey, digital document submission and access in all three languages, Amana Takaful continues to make its services more transparent, convenient and accessible to customers across the country.” (Colombo/Oct16/2026)

Continue Reading

Ajith Medis to head Sri Lanka’s SMB Finance

ECONOMYNEXT – Sri Lanka’s SMB Finance PLC has appointed Lansage Ajith Prasanna Medis as chief executive officer of the company with effect from October 16.

Medis does not have a relevant interest in shares issued by the company, SMB Finance said in a market filing.

A brief profile provided by the company is reproduced below:

Professor Ajith Medis has extensive experience in academia, financial services, business strategy, and management.

He joined academia in 2002 after a decade of working with LOLC, People’s Merchant Bank, and Mitsui & Company.

He previously held senior positions in the financial services sector, including Chief Executive Officer of PMF Finance PLC, Director of Alliance Finance PLC, Overseas Consultant to the Indian School of Business in Hyderabad, and many others.

He has also provided consultancy services to over 30 finance companies in various capacities, both local and overseas.

His expertise includes implementing turnaround strategies for ailing entities, enhancing top- and bottom-line performance for growth, and restoring corporate fundamentals.

Professor Medis holds a Bachelor of Commerce (Special Honors) degree from the University of Kelaniya, a Master of Business Administration from the University of Sri Jayewardenepura, and a PhD in Strategy from Management and Science University, Malaysia.

He also holds a Postgraduate Diploma in Marketing from the Chartered Institute of Marketing in the UK and a Certified Management Accountant qualification from Australia.

His combined academic expertise, financial-sector experience, and strategic management background will contribute to the leadership and future development of SMB Finance PLC. (Colombo/Oct16/2026)

Continue Reading

Sri Lanka stocks trend up, ASPI gains 0.60-pct

ECONOMYNEXT — Sri Lanka’s Colombo Stock Exchange opened up on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.60 percent.

The ASPI was up 119.48 points at 20,090.63, while the more liquid S&P SL20 was up 0.63 percent, or 36.09 points, at 5,735.11.

Positive contributors to the ASPI were Dialog Axiata (up 3.29 percent at 43.90 rupees), Commercial Bank of Ceylon (up 0.51 percent at 199.00 rupees), Sri Lanka Telecom (up 4.54 percent at 82.90 rupees), and Sampath Bank (up 1.45 percent at 140.00 rupees).

Distilleries Company of Sri Lanka (down 1.57 percent at 50.00 rupees), Ambeon Holdings (down 3.98 percent at 31.40 rupees), Tokyo Cement Company (Lanka) (down 2.28 percent at 72.80 rupees), Singer (Sri Lanka) (down 0.56 percent at 70.60 rupees), and Ceylon Tobacco Company (down 0.56 percent at 1,768.00 rupees) were top negative contributors.

Market turnover was 170.32 million rupees. Capital goods led turnover with 36.64 million rupees. (Colombo/Oct16/2026)

Continue Reading

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)

Continue Reading