SenFin Research – News Updates – 12 October 2026

CBSL says safety nets, not monetary policy, must shield those hit by inflation
Fiscal policy and social safety nets, not monetary policy, are the right tools to protect segments of society hit hardest by inflation, Central Bank of Sri Lanka (CBSL) Assistant Governor Dr. P.K.G. Harischandra said, defending the Bank’s 5% inflation target.
Source: (Daily Ft) https://www.ft.lk/front-page/CBSL-says-safety-nets-not-monetary-policy-must-shield-those-hit-by-inflation/44-798541.

Reserves slip to $ 6.85 b in Sept. despite CBSL dollar purchases
Sri Lanka’s foreign reserves fell 1.1% to $ 6.85 billion at the end of September from $ 6.93 billion a month earlier, even though the Central Bank of Sri Lanka (CBSL) bought a net $ 64.2 million from the market during the month, official data showed.
Source: (Daily Ft) https://www.ft.lk/front-page/Reserves-slip-to-6-85-b-in-Sept-despite-CBSL-dollar-purchases/44-798548

Foreign investors buy Sri Lanka rupee bonds for second week
Foreign investors bought Sri Lanka rupee bonds for a second straight week in the week ended on October 9, Central Bank data showed, amid a stable rupee.
Source: (economynext) https://economynext.com/foreign-investors-buy-sri-lanka-rupee-bonds-for-second-week-286160/

Private borrowing falls to Rs. 106 b in August, lowest in four months
Private sector borrowing from Sri Lanka’s banking system slowed for a second consecutive month in August. Net credit expanded by Rs. 105.7 billion month-on-month (MoM), the smallest increase since April and 37% below July’s Rs. 169.1 billion, provisional data from the Central Bank of Sri Lanka (CBSL) showed.
Source: (Daily Ft) https://www.ft.lk/front-page/Private-borrowing-falls-to-Rs-106-b-in-August-lowest-in-four-months/44-798549

MONETARY POLICY: ‘5% target gave CBSL room to maneuver’
The Central Bank of Sri Lanka's inflation target of 5% allowed it the flexibility to only increase interest rates by 1% or 100 bps in May – and forego further tightening, Director of Economic Research Lasitha Pathberiya said, speaking on the CBSL's panel discussion on inflation target review on Friday (9).
Source: (the morning)https://www.themorning.lk/articles/NE2qIV5FBmm1H9M9JCae

Emergency oil releases risk draining the world’s last supply cushion
Earlier this week, the International Energy Agency, after consulting with G7, said it would release another 100 million barrels of diesel, petrol, and crude oil. The release is part of a plan announced in March to release 400 million barrels of oil in response to the Hormuz squeeze. But there is a problem with those releases – storage is emptying.
Source: (the morning) https://www.themorning.lk/articles/Lk7KNKZiJPJ3QR0volYC

Sri Lanka spends less than 30-pct of 2026 capital spending through Sept: sources
Sri Lanka has spent less than 30 percent of 2026 capital spending, two government sources said, with the government expects to fully utilize it before the end of this year.
Source: (economynext) https://economynext.com/sri-lanka-spends-less-than-30-pct-of-2026-capital-spending-through-sept-sources-286162/

Sri Lanka advances virtual asset regulations ahead of AML evaluation
Sri Lanka has stepped up preparations to regulate virtual assets and virtual asset service providers (VASPs), with the Government advancing legal reforms aimed at strengthening financial oversight and combating money laundering.
Source: (Daily News) https://dailynews.lk/2026/10/12/business/1044071/sri-lanka-advances-virtual-asset-regulations-ahead-of-aml-evaluation/

MTI and Skift to strategise for Sri Lanka’s global tourism campaign
Skift, the world’s largest tourism industry Intelligence consultancy, in a joint venture with MTI Consulting, the international strategy consultancy, has been selected by the Tourism Ministry and the World Bank to strategise and support the development of Sri Lanka’s Global Destination Communication Campaign Roadmap.
Source: (Daily Ft) https://www.ft.lk/front-page/MTI-and-Skift-to-strategise-for-Sri-Lanka-s-global-tourism-campaign/44-798545

Sri Lanka needs better investment climate: Jha
Sri Lanka needs to improve its investment climate to attract greater Indian investment, particularly in ports and logistics, energy and shipbuilding, Indian High Commissioner to Sri Lanka Santosh Jha said on Friday (9).
Source: (the morning) https://www.themorning.lk/articles/2gxnwl8MiHpIzcC4JB4d

e-Commerce: Complex documentation affects 68-80% of exporters: ODI
Around 68- 80% of Sri Lankan exporters report that navigating complicated paperwork requirements as a challenge, with e-commerce exporters reporting marginally higher difficulty in handling documentation, according to a recently published Overseas Development Institute (odi) report titled: “E-commerce and International trade in Sri Lanka”.
Source: (the morning) https://www.themorning.lk/articles/AeueRgEma8cCbNjhgoJp

‘Govt. revenue from legal cigarette trade is six times CTC profit’
Ceylon Tobacco Company PLC (CTC) is calling for a balanced approach in Sri Lanka in terms of taxation of legal products and enforcements on illicits, which have seen sharp growth over the last decade.
Source: (Daily Ft) https://www.ft.lk/top-story/Govt-revenue-from-legal-cigarette-trade-is-six-times-CTC-profit/26-798550