SenFin Research – News Updates – 19 October 2026

We are not inflation nutters; SL not ready for sub-5% inflation target: CBSL
The Central Bank of Sri Lanka (CBSL) has ruled out a lower inflation target for now. It concluded that a goal below 5% would force a prolonged period of tight monetary policy on an economy still recovering from crisis and exposed to repeated external shocks.
Source: (Daily Ft) https://www.ft.lk/front-page/We-are-not-inflation-nutters-SL-not-ready-for-sub-5-inflation-target-CBSL/44-798848

Tourism earnings rise for second month, but YTD revenue falls 9.2%
Sri Lanka’s tourism earnings recorded a second consecutive month of year-on-year (YoY) growth in September, rising 1.5% to $ 185.6 million despite a marginal decline in arrivals, but cumulative revenue remained under pressure amid weaker visitor numbers and continuing external headwinds.
Source: (Daily Ft) https://www.ft.lk/front-page/Tourism-earnings-rise-for-second-month-but-YTD-revenue-falls-9-2/44-798845

China Merchants, SLPA, Access scrap $ 392 m logistics hub
China Merchants Port Holdings Company Ltd., the Sri Lanka Ports Authority (SLPA), and Access Engineering PLC have agreed to abandon the South Asia Commercial and Logistics Hub (SACLH) project in Port of Colombo. Under the settlement, the three partners will get back about $ 29.8 million of the $ 37.1 million they had invested.
Source: (Daily Ft) https://www.ft.lk/front-page/China-Merchants-SLPA-Access-scrap-392-m-logistics-hub/44-798849

Generator failure triggers islandwide blackout; probe launched into grid collapse: NSO
The National System Operator (NSO) yesterday said a generator failure triggered an islandwide blackout on Saturday (17), collapsing the country’s national power grid within 30 seconds and prompting an investigation into the sequence of events. The outage occurred at around 11:43 a.m., with the operator noting that a generator’s automatic disconnection under abnormal conditions should not ordinarily cause a complete system collapse.
Source: (Daily Ft) https://www.ft.lk/front-page/Generator-failure-triggers-islandwide-blackout-probe-launched-into-grid-collapse-NSO/44-798842

High Grown tea output sinks to 34-year low in September
Sri Lanka’s tea production fell by nearly 9% year-on-year in September to 20.2 MnKg, from 22.1 MnKg a year earlier, as excessive rainfall and poor growing conditions dragged High Grown output down to its lowest level in 34 years, Asia Siyaka Commodities PLC said, citing preliminary data from the Sri Lanka Tea Board.
Source: (Daily Ft) https://www.ft.lk/front-page/High-Grown-tea-output-sinks-to-34-year-low-in-September/44-798775

Karu warns of consequences as Sri Lanka falls short of economic targets
Former Speaker Karu Jayasuriya has raised concerns over Sri Lanka’s progress in implementing the Economic Transformation Act of 2024, warning that delays in economic and institutional reforms could have serious long-term consequences.
Source: (Newswire) https://www.newswire.lk/2026/10/18/karu-warns-of-consequences-as-sri-lanka-falls-short-of-economic-targets/?shem=dsdf,sharefoc,agadiscoversdl,,sh/x/discover/m1/4,aimgspe,

Health: Influenza cases on the rise nationwide
Sri Lanka is experiencing a rise in influenza infections across the country, the Epidemiology Unit reveals, urging the public to remain vigilant as it stresses that simple preventive behaviour can help prevent a wider surge.
Source: (the morning) https://www.themorning.lk/articles/RpKXvoWoI7GmI2vg89ZN

BOI investment proposals fall 31% in 2025
The number of investment proposals submitted to the Board of Investment (BOI) fell by 31% in 2025, ending three consecutive years of recovery, while more than half of all proposals received over the past decade have either been rejected or become inactive, according to data obtained by The Sunday Morning Businesses through a Right to Information (RTI) request.
Source: (the morning) https://www.themorning.lk/articles/2dXQBf5z3ZZHADIJeumw

Inflation edges up as vegetable prices soar
In accordance with the weekly economic indicators issued by the Central Bank of Sri Lanka, the country’s cost of living rose again, with official data showing annual inflation climbing above 8 percent while vegetable prices surged sharply compared with a year ago.
Source: (Daily News) https://dailynews.lk/2026/10/19/business/1045459/inflation-edges-up-as-vegetable-prices-soar/

Tax those who can pay, says World Bank
The World Bank has called on Sri Lanka to shift its tax burden from consumption to income, warning that the post-crisis revenue surge must now be made fair and sustainable.
Source: (the morning) https://www.themorning.lk/articles/D86q34LYwPzvlf3GvL3n

Sri Lanka’s southern port handles 167,569 vehicles as imports rebound
Sri Lanka’s Chinese built Hambantota International Port (HIP) said it delivered 167,569 vehicles in 18 months, between March 2025 and September 2026, as vehicle imports rebounded.
Source: (economynext) https://economynext.com/sri-lankas-southern-port-handles-167569-vehicles-as-imports-rebound-287008/

Sri Lanka sees foreign buying in rupee bonds for third week
Foreign investors bought Sri Lanka rupee bonds for a third straight week in the week ended on October 16, Central Bank data showed, despite slight depreciation pressure on the rupee currency.
Source: (economynext) https://economynext.com/sri-lanka-sees-foreign-buying-in-rupee-bonds-for-third-week-287014/

Sri Lanka’s new active credit card expansion continues in July, August
The expansion in new active credit cards in Sri Lanka continued in July and August, following a slowdown in June, official data showed.
Source: (economynext) https://economynext.com/sri-lankas-new-active-credit-card-expansion-continues-in-july-august-287012/

Dialog cedes Doc990 control as Sunshine buys 22% for Rs. 375 m
Dialog Axiata PLC has given up control of Digital Health Ltd., operator of the Doc990 digital health platform. It sold a 20% stake to Sunshine Holdings PLC’s healthcare arm and Nawaloka Hospitals PLC for Rs. 374.9 million, partially monetising its investment, the companies said on Friday.
Source: (Daily Ft) https://www.ft.lk/front-page/Dialog-cedes-Doc990-control-as-Sunshine-buys-22-for-Rs-375-m/44-798846

Vidullanka wins $ 1.35 m Fiji mini hydro contract
Vidullanka PLC has secured a $ 1.35 million contract to build a mini-hydropower facility in Fiji, marking its first entry into the Pacific island region’s renewable energy sector, the company said on Friday.
Source: (Daily Ft) https://www.ft.lk/front-page/Vidullanka-wins-1-35-m-Fiji-mini-hydro-contract/44-798843