SenFin Research – News Updates – 12 July 2026

SenFin Research – News Updates – 12 July 2026


IMF pushes CIABOC to fast-track digital corruption crackdown
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) is accelerating institutional recruitment and implementing automated, technology-driven systems to reduce corruption vulnerabilities.
Source: (Sunday Times) https://www.sundaytimes.lk/260712/business-times/imf-pushes-ciaboc-to-fast-track-digital-corruption-crackdown-648568.html

What being upper-middle income means for SL
The World Bank Group has officially bumped Sri Lanka up to the upper-middle-income tier with effect from 1 July, an upgrade which reflects 5% real economic growth recorded over 2025, lifting the country out of the lower-middle-income bracket.
Source: (the morning) https://www.themorning.lk/articles/Ivv8AL05HKbeBXu8B24F

Sri Lanka’s economy over the years and where it is today
We have all got used to what the Sri Lankan economy was supposed to be like. The country would spend money it didn’t have and buy things it couldn’t afford, and end up throwing a grand party for a while. But then, the bill would come due.
Source: (the morning) https://www.themorning.lk/articles/sSDelinA3ZLJsklIX5q3

T-bill yields show signs of stabilising
Treasury bill (T-bill) yields showed signs of stabilising at last week’s auction, with movement across the three maturities largely flat, as the Public Debt Management Office (PDMO) accepted the entire stock on offer for the fourth consecutive auction amid robust investor demand.
Source: (the morning) https://www.themorning.lk/articles/jQI4kfPruIOz8oNZcqRJ

No revenue loss expected from VAT threshold decision
No revenue shortfall is expected from the reversal of the earlier decision to reduce the mandatory Value-Added Tax (VAT) registration threshold from Rs. 60 million to Rs. 36 million, according to the Government.
Source: (the morning) https://www.themorning.lk/articles/qpTerVhSeLgsV6aZTAhZ

Sri Lanka’s tariff reset is a scale test, not a trade footnote
On July 1, 2026, the World Bank approved the first 150 million dollar tranche of a three-part REGROW Development Policy Operation for Sri Lanka.
Source: (Sunday Observer) https://www.sundayobserver.lk/2026/07/12/business/80610/sri-lankas-tariff-reset-is-a-scale-test-not-a-trade-footnote/

Palm oil revival hangs on policy U-turn and survival
The Sri Lankan palm oil industry is surviving in a highly regulated state of policy transition following the 2021 ban on local oil palm cultivation which remains technically active while an expert cabinet-appointed committee has completed its evaluation to conditionally lift the restrictions.
Source: (Sunday Times) https://www.sundaytimes.lk/260712/business-times/palm-oil-revival-hangs-on-policy-u-turn-and-survival-648515.html

Sri Lanka Tourism set for stronger second half
Sri Lanka remains on course to attract over 2.5 million tourist arrivals this year despite disruptions caused by the Middle East conflict, while targeting tourism earnings of over US$3.5 billion, Deputy Minister of Tourism Ruwan Ranasinghe told reporters.
Source: (Sunday Observer) https://www.sundayobserver.lk/2026/07/12/business/80668/sri-lanka-tourism-set-for-stronger-second-half/

Path to achieving Sri Lanka’s export target of $36 bn by 2030
The Government has announced an aggressive export target. This indicates commitment to economic growth. Great because Sri Lanka has not kept up with other neighbouring countries
Source: (Sunday Times) https://www.sundaytimes.lk/260712/business-times/path-to-achieving-sri-lankas-export-target-of-36-bn-by-2030-648549.html

Hoteliers on shortage of staff
Sri Lanka’s hotels are facing a risk of a shortage of adequate staff as most of the trained staff is continuing to travel to potentially higher paying jobs outside of the country.
Source: (Sunday Times) https://www.sundaytimes.lk/260712/business-times/hoteliers-on-shortage-of-staff-648562.html

AMF minority shareholders cry foul over LB Finance merger pricing
Minority shareholders of Associated Motor Finance Company PLC (AMF) have renewed their challenge to the proposed amalgamation with L B Finance PLC after the Central Bank of Sri Lanka (CBSL) informed them that the pricing of the transaction falls outside its regulatory mandate, prompting shareholders to intensify calls for intervention by the Securities and Exchange Commission of Sri Lanka (SEC).
Source: (Daily FT) https://www.ft.lk/financial-services/AMF-minority-shareholders-cry-foul-over-LB-Finance-merger-pricing/42-794471