SenFin Research – News Updates – 1 July 2026

Food and energy costs push Sri Lanka inflation to 6.8% in June
Headline inflation accelerated further in June, rising above the Central Bank’s 5 percent target as higher domestic energy prices linked to the Middle East conflict continued to feed through to the economy. Source: (Daily Mirror) https://www.dailymirror.lk/breaking-news/Food-and-energy-costs-push-Sri-Lanka-inflation-to-6-8-in-June/108-344295

Construction firms report strong project pipeline despite mounting cost pressures
Sri Lanka’s construction sector regained momentum in May as a steady flow of new project awards helped drive activity back into expansion territory, offering fresh evidence that investment activity remains resilient despite higher borrowing costs and global uncertainty.
Source: (Daily Mirror) https://www.dailymirror.lk/breaking-news/Construction-firms-report-strong-project-pipeline-despite-mounting-cost-pressures/108-344298

Sri Lanka weathers Middle East shock better than expected: IMF
Sri Lanka’s economic recovery has remained resilient despite the fallout from the Middle East conflict, with strong revenue collection and growth helping cushion the impact of external shocks, although significant reform challenges remain, the International Monetary Fund (IMF) said yesterday.
Source: (Daily Mirror) https://www.dailymirror.lk/breaking-news/Sri-Lanka-weathers-Middle-East-shock-better-than-expected-IMF/108-344299

Export earnings: Coconut exports reach $ 514 m despite disruptions
Sri Lanka’s coconut export earnings rose to $ 514 million during the January to May period this year, marking a 21% increase compared to the same period in 2025, according to the Coconut Development Authority.
Source: (the morning) https://www.themorning.lk/articles/zmQNAFIkskd0I00BH49l

Customs says alleged $ 1 b phantom imports fell outside its remit
Sri Lanka Customs yesterday said the alleged nearly $ 1 billion transferred overseas since 2023 through advance-payment transactions without corresponding imports fell outside its operational mandate, indicating that such transactions would instead have been visible to the banking system and the Central Bank’s Financial Intelligence Unit (FIU).
Source: (Daily FT) https://www.ft.lk/front-page/Customs-says-alleged-1-b-phantom-imports-fell-outside-its-remit/44-793992

IMF backs revenue gains, keeps focus on cost-recovery pricing
The International Monetary Fund (IMF) yesterday welcomed Sri Lanka’s fiscal performance so far this year, saying revenue collection had remained broad-based despite external shocks, while reiterating that reforms to energy pricing and public finance remain central to the country’s economic program.
Source: (Daily FT) https://www.ft.lk/front-page/IMF-backs-revenue-gains-keeps-focus-on-cost-recovery-pricing/44-793998

IMF insists exchange-rate flexibility remains first line of defence
The International Monetary Fund (IMF) yesterday said exchange-rate flexibility should remain the primary mechanism for absorbing external shocks, while indicating that assessments of market volatility depend on economic circumstances rather than fixed thresholds.
Source: (Daily FT) https://www.ft.lk/front-page/IMF-insists-exchange-rate-flexibility-remains-first-line-of-defence/44-793997

IMF urges Govt. be bold on outstanding reforms
The International Monetary Fund (IMF) yesterday said Sri Lanka’s swift response to the economic fallout from the Middle East conflict had preserved macroeconomic and social stability, while urging the Government to pursue “bold reforms” as it prepares for the Seventh Review of its Extended Fund Facility (EFF) arrangement.
Source: (Daily FT) https://www.ft.lk/top-story/IMF-urges-Govt-be-bold-on-outstanding-reforms/26-793990

IMF says vehicle curbs did not derail EFF program as imports top $ 1 b YTD May
The International Monetary Fund (IMF) yesterday clarified that Sri Lanka’s temporary tightening of vehicle import financing requirements did not derail its Extended Fund Facility (EFF) program, as the Central Bank reported motor vehicle imports had exceeded $ 1 billion during the first five months of 2026.
Source: (Daily FT) https://www.ft.lk/front-page/IMF-says-vehicle-curbs-did-not-derail-EFF-program-as-imports-top-1-b-YTD-May/44-793991

Business sentiment falls to 20-month low
The LMD-PepperCube Business Confidence Index (BCI) fell by 16 points to 132 in June – from 148 in the month prior – marking its lowest level in 20 months, as concerns over exchange rate pressures, rising costs and broader economic uncertainty continued to weigh on the corporate sector.
Source: (the morning) https://www.themorning.lk/articles/x1Rh89cvxjRyPTg00rWH

DIMO expands renewable energy portfolio with 18MW solar power addition in Galle
DIMO has successfully developed four new solar power plants in the Galle district, adding a total of 18MW of clean energy capacity to Sri Lanka’s national grid, further strengthening its renewable energy portfolio. The utility-scale solar power plants situated in Rathgama and Akmeemana were developed through fully owned subsidiaries of DIMO as Independent Power Producer (IPP) projects and are now part of the country’s ongoing efforts to expand renewable energy.
Source: (Daily FT) https://www.ft.lk/business/DIMO-expands-renewable-energy-portfolio-with-18MW-solar-power-addition-in-Galle/34-794022