SenFin Research – News Updates – 19 May 2026

Industrial activity up, tourism earnings, financial market indicators dip
Sri Lanka’s economy reflected mixed trends across key sectors during the week ending May 15, with industrial activity showing improvement while tourism earnings and financial market indicators recorded declines, according to the latest Weekly Economic Indicators released by the Central Bank of Sri Lanka (CBSL).
Source: (Daily News) https://dailynews.lk/2026/05/19/business/996926/industrial-activity-up-tourism-earnings-financial-market-indicators-dip/

Sri Lanka services contracts in Apr 2026 due to increase in energy prices: PMI
Sri Lanka’s services sector contracted in April 2026 due to seasonal impacts following the festive period and the increase in energy prices, according to a Purchasing Managers Index compiled by the central bank which registered an index value of 46.7, compared to 59.4 the previous month.
Source: (economynext) https://economynext.com/sri-lanka-services-contracts-in-apr-2026-due-to-increase-in-energy-prices-pmi-272012/

Sri Lanka manufacturing contracts in April 2026: PMI
Sri Lanka’s manufacturing sector contracted in April, registering a value of 42.6 on a Purchasing Managers Index compiled by the central bank, compared to 66.7 the previous month.
Source: (economynext) https://economynext.com/sri-lanka-manufacturing-contracts-in-april-2026-pmi-272005/

Oil shortage scenario looms large
The world is running out of oil. Implausible three months ago, the likelihood of a crude shortage on a global scale is becoming increasingly realistic with each day that the Strait of Hormuz remains almost completely blocked. Analysts are no longer modelling for a swift end to the war between the United States, Israel, and Iran. They are now also allowing for an extended period of severe energy flow disruptions – and it is not looking good.
Source: (the morning) https://www.themorning.lk/articles/CsG9my6jvL1IE7M3oCGR

IEA warns global oil stocks falling rapidly
The International Energy Agency (IEA) yesterday warned that global commercial oil inventories are declining rapidly as supply disruptions linked to the Middle East conflict continue to strain energy markets despite coordinated releases from strategic reserves.
Source: (Daily FT) https://www.ft.lk/front-page/IEA-warns-global-oil-stocks-falling-rapidly/44-792113

Gold slips to 1.5-month low as ME tensions lift oil
Spot gold was down 1.1% at $ 4,488.99 per ounce, as of 0052 GMT, hitting its lowest level since 30 March.
Source: (the morning) https://www.themorning.lk/articles/c0jK5gAP6LltxlQf8XTn

Govt. allocates extra Rs. 2.5 b fertiliser support as Gulf tensions weigh on tea sector
The Government yesterday announced an additional Rs. 2.5 billion fertiliser subsidy package for tea smallholders and growers as rising geopolitical tensions in the Gulf region continue to pressure Sri Lanka’s tea industry through higher energy, fertiliser and production costs.
Source: (Daily FT) https://www.ft.lk/front-page/Govt-allocates-extra-Rs-2-5-b-fertiliser-support-as-Gulf-tensions-weigh-on-tea-sector/44-792116

Sri Lanka to see current account deficit in 2026 for first time in 4 years: CB
Sri Lanka is likely to see a current account deficit this year, bucking the trend for the first time in four years, due to higher dollar outflows than inflows amid expensive global oil prices, a top Central Bank official said.
Source: (economynext) https://economynext.com/sri-lanka-to-see-current-account-deficit-in-2026-for-first-time-in-4-years-cb-271822/

CBSL steps up financial sector consolidation drive amid rapid credit expansion
The Central Bank of Sri Lanka (CBSL) has intensified efforts to consolidate the banking and non-bank financial sector, identifying three finance companies for merger discussions while warning that many smaller commercial banks face growing sustainability pressures under current operating conditions.
Source: (Daily FT) https://www.ft.lk/front-page/CBSL-steps-up-financial-sector-consolidation-drive-amid-rapid-credit-expansion/44-792115

No spot quote for Sri Lanka rupee; bond yields up
There was no spot closing quote for Sri Lanka’s rupee on Monday after trades at 326.50 (low) and 327.50 (high) to the dollar in the day, dealers said, while bond yields closed up.
Source: (economynext) https://economynext.com/no-spot-quote-for-sri-lanka-rupee-bond-yields-up-271952/

Sri Lanka stocks close down as selling pressure kicks in
Sri Lanka’s Colombo Stock Exchange closed down on Monday trading, with selling pressure coming in brokers said.
Source: (economynext) https://economynext.com/sri-lanka-stocks-close-down-as-selling-pressure-kicks-in-271924/

Dialog delivers strong Q1 2026 financial performance
Dialog Axiata PLC announced its consolidated financial results for the quarter ended 31 March 2026 onFriday 15 May 2026. Financial results included those of Dialog Axiata PLC and of the Dialog Axiata Group.
Source: (Daily News) https://dailynews.lk/2026/05/19/business/996923/dialog-delivers-strong-q1-2026-financial-performance/

Exports: Hayleys’ Dipped Products PLC invests Rs. 2.3 b in manuf.
Dipped Products PLC (DPL), a subsidiary of Hayleys PLC, recently announced a Rs. 2.3 billion into its hand-glove manufacturing production, including a series of other major capacity expansion projects at its Kottawa manufacturing facility.
Source: (the morning) https://www.themorning.lk/articles/PemkEzByJOkhKzEyGX68

Global stocks retreat as oil climbs
Global share markets slipped on Monday as fresh drone attacks in the Gulf pushed oil prices and bond yields higher, stoking inflation worries.
Source: (Daily FT) https://www.ft.lk/financial-services/Global-stocks-retreat-as-oil-climbs/42-792121

Mideast airports face $ 1 b loss amid conflict disruption
The ongoing conflict in the Middle East has resulted in an estimated $ 900 million to $ 1 billion revenue loss for nine major Middle East airports over a two-month period, according to an assessment by Airports Council International Asia-Pacific and Middle East (ACI APAC and MID) in partnership with Flare Aviation Consulting.
Source: (Daily FT) https://www.ft.lk/front-page/Mideast-airports-face-1-b-loss-amid-conflict-disruption/44-792114