SenFin Research – News Updates – 16 June 2026

Economic growth picks up to 5.1% in 1Q
Sri Lanka’s economy grew 5.1% in the first quarter of 2026, up from 4.8% in the December 2025 quarter, according to data released by the Department of Census and Statistics (DCS) yesterday.
Source: (Daily FT) https://www.ft.lk/top-story/Economic-growth-picks-up-to-5-1-in-1Q/26-793344

Sri Lanka tourist arrivals down 9% in first half of June
Sri Lanka welcomed 54,465 tourists during the first 14 days of June, marking a 9% decline compared to the 59,787 visitors recorded during the corresponding period last year.
Source: (Daily FT) https://www.ft.lk/front-page/Sri-Lanka-tourist-arrivals-down-9-in-first-half-of-June/44-793341

Capital expenditure: Only Rs 240 b spent of total capital expenditure
Of the Rs 1,719 billion that Sri Lanka has allocated for capital expenditure this year – including the Rs 500 billion supplementary allocation towards Cyclone Ditwah relief – roughly Rs 240 billion has been spent, according to Department of National Budget Director General Jude Nilukshan, who spoke to the Committee on Public Finance last week (11).
Source: (the morning) https://www.themorning.lk/articles/mVe5lWu3W5R8f4SwBmb7

Tea auction volumes rise as strong rupee weighs on high-grown prices
Sri Lanka’s tea auction offerings increased further this week, reaching 6.4 million kilogrammes, with Low and Mid Grown leafy and semi-leafy teas continuing to attract healthy demand and satisfactory prices despite emerging market challenges.
Source: (Daily News) https://dailynews.lk/2026/06/16/business/1011095/tea-auction-volumes-rise-as-strong-rupee-weighs-on-high-grown-prices/

Sea Street gold prices surge
The gold prices climbed sharply yesterday, with the local bullion dealers reporting a steep increase in the sovereign prices after the international gold rates rose above US $ 4,300 an ounce, amid the heightened investor demand for safe-haven assets.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Sea-Street-gold-prices-surge/273-342999

Export earnings: Textile and garment sector records 7.3% decline
According to the latest report released by the Economic Research Department of the Central Bank of Sri Lanka, export earnings from the textile and garment sector – one of Sri Lanka’s key export industries – declined during the first four months of this year.
Source: (the morning) https://www.themorning.lk/articles/5qn9Kq6taeAHVUEb8Unx

Budget surplus hits Rs. 105 b as vehicle-related taxes drive revenue surge
Sri Lanka’s fiscal position strengthened sharply in the first four months of 2026, with the Government posting a Budget surplus of Rs. 105 billion compared to a deficit of Rs. 261.6 billion in the corresponding period of last year, driven by a surge in revenue collection led by taxes linked to motor vehicle imports.
Source: (Daily FT) https://www.ft.lk/front-page/Budget-surplus-hits-Rs-105-b-as-vehicle-related-taxes-drive-revenue-surge/44-793342

Fitch: Higher gold-loan risk weights to have manageable impact on lenders’ capital
Fitch Ratings has said the Central Bank of Sri Lanka’s decision to tighten capital requirements for gold-backed lending will have a largely manageable impact on the capital positions of banks and finance companies while improving the sector’s overall risk profile.
Source: (Daily FT) https://www.ft.lk/financial-services/Fitch-Higher-gold-loan-risk-weights-to-have-manageable-impact-on-lenders-capital/42-793362

CBSL Chief defends rupee depreciation, says flexible exchange rate vital shock absorber
After weeks of criticism from MPs over the recent depreciation of the rupee, Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe last week used a Parliamentary briefing to defend the country’s exchange rate policy framework and explain the factors behind the currency’s recent weakness.
Source: (Daily FT) https://www.ft.lk/front-page/CBSL-Chief-defends-rupee-depreciation-says-flexible-exchange-rate-vital-shock-absorber/44-793339

Oil falls, stock markets soar as US, Iran confirm deal to end war
Brent crude, the primary benchmark for global oil prices, fell about 4.5% to below $ 83.4 per barrel yesterday on news of the impending peace deal between the US and Iran this Friday.
Source: (Daily FT) https://www.ft.lk/front-page/Oil-falls-stock-markets-soar-as-US-Iran-confirm-deal-to-end-war/44-793337

Sri Lanka and India set sights towards Rupee-converted $ 6 b trade
Sri Lanka and India are exploring the potential to convert the $ 6 billion bilateral trade to Rupee basis on the basis of multiple advantages.
Source: (Daily FT) https://www.ft.lk/front-page/Sri-Lanka-and-India-set-sights-towards-Rupee-converted-6-b-trade/44-793343

ASPI hits third highest single-day gain
The Colombo stock market yesterday opened the week with a strong rally, reaching its third highest single-day gain on positive news emerging from the Middle East of a possible end to the war.
Source: (Daily FT) https://www.ft.lk/front-page/ASPI-hits-third-highest-single-day-gain/44-793336

Sri Lanka rupee closes at 333/334.50 to US dollar spot, bond yields down
Sri Lanka’s rupee closed at 333.00/334.50 to the US dollar in the spot market on Monday, from 335.50/336.00 the previous day, while bond yields came down drastically following news of the US-Iran deal, dealers said.
Source: (economynext) https://economynext.com/sri-lanka-rupee-closes-at-333-334-50-to-us-dollar-spot-bond-yields-down-275529/

Sri Lanka stocks close up 3.43-pct on positive sentiment following US-Iran deal
Sri Lanka’s Colombo Stock Exchange closed up following news of a US-Iran deal, brokers said, with the benchmark index rising 3.43 percent.
Source: (economynext) https://economynext.com/sri-lanka-stocks-close-up-3-43-pct-on-positive-sentiment-following-us-iran-deal-275499/

Asia Asset Finance plans Rs. 1.5 b rights issue to bolster Tier 1 capital
Asia Asset Finance PLC (AAF) has announced plans to raise approximately Rs. 1.5 billion through a Rights Issue aimed at strengthening its capital base and supporting future business growth.
Source: (Daily FT) https://www.ft.lk/financial-services/Asia-Asset-Finance-plans-Rs-1-5-b-rights-issue-to-bolster-Tier-1-capital/42-793360

Sierra Cables FY2025/26 revenue surpasses Rs.16bn and profit climbs 194%
Sierra Cables PLC has delivered a record financial performance for the financial year ended 31 March 2026, posting significant growth in both revenue and profitability while further strengthening its position in international markets and expanding its domestic distribution footprint.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Sierra-Cables-FY202526-revenue-surpasses-Rs-16bn-and-profit-climbs-194/273-342996

Sri Lanka’s Alliance Finance withdraws debenture issue
Sri Lanka’s Alliance Finance Company said it was withdraw its debenture issue due to prevailing adverse market conditions.
Source: (economynext) https://economynext.com/sri-lankas-alliance-finance-withdraws-debenture-issue-275451/