Sri Lanka Treasury bill yields steady, Rs100bn sold

Wednesday July 8, 2026 5:38 pm ECONOMYNEXT – Sri Lanka’s Treasury bill yields were broadly steady at Wednesday’s auction, with the short-term dipping slightly, data from the Public Debt Management Office showed. All offered 100 billion rupees of bills sold. The 3-month bill was…

Wednesday July 8, 2026 5:38 pm

ECONOMYNEXT – Sri Lanka’s Treasury bill yields were broadly steady at Wednesday’s auction, with the short-term dipping slightly, data from the Public Debt Management Office showed. All offered 100 billion rupees of bills sold. The 3-month bill was down 2 basis points at 10.21, with 50 billion rupees offered and 58.47 billion sold. The 6-month bill was unchanged at 10.30 percent, with all 35 billion rupees offered sold. The 12-month bill was unchanged at 10.20 percent, with 15 billion rupees offered and 6.53 billion sold. All 3 bills are available on tap. (Colombo/Jul8/2026)

Wednesday July 8, 2026 5:31 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 336.00/30 to the US dollar in the spot market on Wednesday, weaker from 334.75/85 the previous day, while bond yields closed up, dealers said. The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 330.50 buying, 339.50 selling; the euro was 374.4884 selling, 388.4054 buying; and the pound was 440.2500 buying, 454.2956 selling. A bond maturing on 15.09.2027 closed flat at 10.30/45 percent. A bond maturing on 15.02.2028 closed at 10.45/55 percent, up from 10.45/50 percent. A bond maturing on 15.12.2029 closed at 11.00/10 percent, up from 10.95/11.05 percent. A bond maturing on 01.08.2030 closed at 11.30/35 percent, up from 11.25/30 percent. A bond maturing on 15.10.2030 closed at 11.36/40 percent, up from 11.28/30 percent. A bond maturing on 15.12.2032 closed at 11.60/70 percent, up from 11.57/65 percent. A bond maturing on 01.11.2033 closed at 11.70/80 percent, up from 11.60/70 percent. A bond maturing on 15.06.2035 closed at 11.75/85 percent. (Colombo/Jul8/2026)

Wednesday July 8, 2026 5:23 pm

ECONOMYNEXT – Sri Lanka hopes to complete several water infrastructure development projects by 2026/2027, at a cost of 17 billion rupees, which will provide safe drinking water to around 300,000 families, Minister Susil Ranasinghe has said. Part of this is the Thambuththegama Water Project, in the president’s hometown, which was completed at a cost of 32 billion rupees. President Anura Kumara Dissanayake and the Chinese Ambassador are scheduled to officially hand over the project to the public on July 10. The project is funded through a loan from the China Development Bank (CDB), with construction and implementation carried out by Chinese state‑owned companies. The facility is designed to provide safe drinking water to 25,000 families across 42 Grama Niladhari divisions, including Thambuththegama, Thalawa, and Galnewa. The government will also lay the foundation stone for the Kebithigollewa-Horowpothana Water Project which is supported by the Japan International Cooperation Agency (JICA) with an estimated cost of 52 million rupees, this project aims to serve 50,000 families.

A primary goal of this expansion is to combat Chronic Kidney Disease (CKDu) by providing safe surface water to regions where groundwater quality is linked to the illness. Additional infrastructure goals for 2026 include the opening of the Laggala project and the completion of the Polgahawela project within two months. The Nuwara Patha Sunwara project, which will serve 73,000 families, is expected to be finished by year-end. (Colombo/July08/2026)

Wednesday July 8, 2026 5:07 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Wednesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.61 percent. The ASPI was down 133.80 points at 21,828.50, while the more liquid S&P SL20 was down 0.59 percent, or 35.98 points, at 6,099.52. Positive contributors to the ASPI were Richard Pieris and Company (up 4.38 percent at 31.00 rupees), Industrial Asphalts (Ceylon) (up 60.00 percent at 0.80 rupees), and Hatton National Bank (up 0.19 percent at 396.00 rupees). Sampath Bank (down 0.88 percent at 140.25 rupees), Hayleys (down 1.37 percent at 234.00 rupees), Dialog Axiata (down 1.35 percent at 44.00 rupees), and LOLC Holdings (down 1.77 percent at 500.25 rupees) were top negative contributors. Market turnover was 2.26 billion rupees. Capital goods led turnover with 727.1 million rupees. Industrial Asphalts (Ceylon) announced its Executive Director entered into a binding agreement to sell a 48.03 percent controlling interest (1.8 billion shares) to Arcasia Investment & Trading and ATX Partners, subject to regulatory approvals. Shares closed up 60 percent at Rs.0.80. Meanwhile, Hela Apparel Holdings disclosed that its fully-owned subsidiary, Hela Clothing Egypt, has signed a management services agreement with Emerald Investments to manage its factory operations until December 31, 2026, amid working capital challenges, with an option for Emerald to acquire the Egyptian entity. (Colombo/July08/2026)

Wednesday July 8, 2026 2:15 pm

ECONOMYNEXT – Sri Lanka lender Commercial Bank’s proposed debenture issue of 20 billion rupees has been assigned a final National Long-Term Rating of A(lka) by Fitch Ratings. This is two notches below the bank’s National Long-Term Rating anchor. “This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed notes do not incorporate going-concern loss-absorption features.” The full statement is reproduced below: Fitch Assigns Commercial Bank of Ceylon’s Basel III Subordinated Debt Final ‘A(lka)’ Rating Fitch Ratings has assigned Commercial Bank of Ceylon PLC’s (COMB, AA-(lka)/Stable) proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures of up to LKR20 billion a final National Long-Term Rating of ‘A(lka)’. The proposed debentures, which will have maturities of five, seven and 10 years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to further strengthen its Tier 2 capital base, reduce maturity mismatches of the balance sheet and support loan 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 subject to 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 16 April 2026 and follows the receipt of documents conforming to information already received. Key Rating Drivers Fitch rates the proposed Basel III Tier 2 debentures two notches below the bank’s National Long-Term Rating anchor. This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed notes do not incorporate going-concern loss-absorption features. COMB’s National Long-Term Rating is used as the anchor rating for this instrument because the rating reflects the bank’s standalone financial strength and best indicates the risk of the bank becoming non-viable. Fitch reviewed COMB’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 would 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 would lead to an upgrade of the subordinated debt rating. (Colombo/Jul8/2026)

Wednesday July 8, 2026 1:48 pm

ECONOMYNEXT – Access Motors Private Limited, the authorized agent for Jaguar Land Rover in Sri Lanka, has been awarded the Most Professional Workshop in the After Sales Service sub-industry category at the Automobile Industry Awards 2026. “This recognition is a reflection of something we have always believed that the ownership experience does not end at handover. It continues every time a client brings their vehicle to us,” Shiran Weerasinghe, General Manager After-Sales, Access Motors Private Limited said. The award recognized the high standard of service, mechanical expertise, and vehicle repair delivered to Jaguar Land Rover clients across the island, the company said, with a team of qualified JLR-certified technicians, trained and assessed to the same exacting standards as the global Jaguar Land Rover service network, handling each vehicle. Access Motors operates the only Jaguar Land Rover certified Body Shop in Sri Lanka, a state-of-the-art, multi-brand repair facility equipped with the latest diagnostic technology and aluminium repair capabilities, for routine maintenance to complex structural repairs. The company’s 3S workshop at 117 Dehiwela Road, Boralesgamuwa, is home to 30 workshop bays, 20 two-post vehicle lifts, and a technical team operating at 95% utilization and 90% efficiency – metrics that place it firmly among the most productive after-sales facilities in the region, the company said. The Automobile Industry Awards recognize excellence and innovation across Sri Lanka’s automotive sector. (Colombo/Jul8/2026)

Wednesday July 8, 2026 12:00 pm

ECONOMYNEXT — Sri Lanka will expand its Vessel Monitoring System (VMS) to cover an additional 1,500 fishing vessels in a bid to curb illegal activities, including drug trafficking, human smuggling, and unregulated fishing, minister Nalinda Jayatissa said. The Cabinet this week approved the proposal to mandate monitoring systems for these remaining vessels, with the government bearing the installation costs, he said. Currently, out of 5,200 registered multi-day fishing vessels in Sri Lanka, 4,200 are fitted with VMS equipment funded by an Australian government grant. While vessels registered after January 2021 must legally self-fund the equipment, approximately 1,500 older multi-day and one-day vessels continue to operate in domestic and international waters without tracking. Officials noted that 400 of these untracked vessels exceed 34 feet in length and are banned from international waters, raising concerns they could be repurposed for illicit activities. The remaining 1,100 lack the engine and fuel capacity for extended sea travel but still lack surveillance. Jayatissa said that while specific vessels are not predetermined as threats, law enforcement acts on targeted intelligence. “The situation is not that a specific predetermined portion out of all existing vessels is known to be engaging in such activities; rather, a number of arrests are made based on information received,” Jayatissa said. Comprehensive tracking would streamline maritime security and law enforcement coordination, he told reporters. “Through the process we are currently implementing, it will provide ease and facilitation for both the Department of Fisheries and the Police to carry out these operations,” Jayatissa said. The expansion aligns with rules set by the Indian Ocean Tuna Commission, which mandates continuous monitoring for all vessels operating in international waters. (Colombo/July 08/2026)