SenFin Research – News Updates – 2 April 2026

CCPI-based headline inflation accelerated in March 2026
The Colombo Consumer Price Index (CCPI, 2021=100)[1] based headline inflation (year-on-year, Y-o-Y) accelerated in March 2026. Accordingly, headline inflation (Y-o-Y) was recorded at 2.2% in March 2026 compared to 1.6% in February 2026.
Source: (the morning) https://www.themorning.lk/articles/FZOihDdPvhycJuN1p979

LKR depreciates 1.6% by March-end
The Sri Lankan Rupee recorded an overall depreciation of 1.6% against the US Dollar as of March end 2026, due to the emergence of external pressures, following the ongoing Middle East conflict in late February 2026, according to the Central Bank of Sri Lanka (CBSL) External Sector Performance report.
Source: (the morning) https://www.themorning.lk/articles/jap9R5xbrKcbb9TfZpqy

Remittance surge cushions widening external cracks in February
Sri Lanka’s external account remained in surplus for a fourth straight month in February. However, the underlying composition signals a growing imbalance, where the worker remittances are increasingly offsetting the weakening fundamentals across trade, tourism and services.
Source: (Daily Mirror) https://www.dailymirror.lk/business-main/Remittance-surge-cushions-widening-external-cracks-in-February/245-336921

Oil Prices ease amidst de-escalation in Iran conflict
According to international news sources oil prices fell in Asian trading on Tuesday, reversing earlier gains, after reports suggested a possible easing of tensions in the ongoing Iran conflict.
Source: (Daily News) https://dailynews.lk/2026/04/02/business/976288/oil-prices-ease-amidst-de-escalation-in-iran-conflict/

Construction sector turns cautiousCosts rise with potential for constraints on supplies from Iran war
The economic fallout from the war in Iran has already taken a toll on the construction sector in Sri Lanka, with the costs having begun to rise and the sector raising alarms over the potential constraints on the supplies, as Iran has blocked ship traffic through the Strait of Hormuz.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Construction-sector-turns-cautiousCosts-rise-with-potential-for-constraints-on-supplies-from-Iran-war/273-336919

Excise Department records a growth of 60%
The Excise Department of Sri Lanka has reported a growth of over 60% in revenue over the past three years, and the main reason for this growth in revenue is the optimal tax revenue generated by affixing security stickers on liquor bottles, the Excise Department says.
Source: (the morning) https://www.themorning.lk/articles/iejzv38nvC6c3y8NTziw

Lending rates fall to four-year lows, credit cards stay put near 28% cap
Sri Lanka’s lending rates have retreated sharply from crisis highs, but credit card interest remains anchored near the regulatory ceiling, exposing a widening disconnect in monetary transmission
Source: (Daily FT) https://www.ft.lk/front-page/Lending-rates-fall-to-four-year-lows-credit-cards-stay-put-near-28-cap/44-790413

Fuel, vehicles boost Sri Lanka’s February 2026 import bill amid rising trade deficit
Higher spending on fuel and vehicle imports led to a surged import bill in February 2026 and an expanded trade deficit, Central Bank data showed.
Source: (economynext) https://economynext.com/fuel-vehicles-boost-sri-lankas-february-2026-import-bill-amid-rising-trade-deficit-265874/

SL yet to improve market access: US
The United States continues to look forward to seeing Sri Lanka offer market access for its homegrown exports ranging from agricultural commodities, machinery and pharmaceuticals, as Sri Lanka continues to run a $ 2.27 billion trade surplus with the global superpower, US Embassy in Sri Lanka Economic Unit Chief Zachary Bailey said in a recently (31 March) published panel discussion on social media.
Source: (the morning) https://www.themorning.lk/articles/VLqDvWUhKWutJjixY2ag

Muted inflation masks impact of triple fuel hikes on households
The consumer prices in the Colombo district rose only a tad higher in March from the levels seen in February but did nothing to capture the true sky-high prices the households are confronting on a daily basis, due to the significantly higher fuel prices.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Muted-inflation-masks-impact-of-triple-fuel-hikes-on-households/273-336920

Inflation is expected to be sustained at 5% through appropriate policy measures
The Central Bank of Sri Lanka (CBSL) states that the increase in transportation costs can be considered as a major reason for the increase in inflation this year (2026)
Source: (Daily News) https://dailynews.lk/2026/04/02/business/976266/inflation-is-expected-to-be-sustained-at-5-through-appropriate-policy-measures/

Interest rates expected to ease, credit growth to continue: CBSL
Central Bank of Sri Lanka (CBSL) Economic Research Director Dr. Lasitha Pathberiya has said interest rates are expected to ease, with private sector credit continuing to grow.
Source: (Daily FT) https://www.ft.lk/front-page/Interest-rates-expected-to-ease-credit-growth-to-continue-CBSL/44-790414

Call for high-value tourism strategy to boost Sri Lanka’s tourist earnings
Sri Lanka’s tourism industry should pivot towards attracting high-spending visitors through a structured national programme, a leading hotel industry official said, highlighting the potential to significantly increase foreign exchange earnings.
Source: (Daily News) https://dailynews.lk/2026/04/02/business/976277/call-for-high-value-tourism-strategy-to-boost-sri-lankas-tourist-earnings/

Stabilisation of fuel prices through Government Subsidy
Measures In view of the prevailing war situation in the Middle East region and the resulting external shocks affecting both the daily lives of the public and the overall economy, the Government has been implementing various measures to manage such impacts in a systematic manner.
Source: (Daily News) https://dailynews.lk/2026/04/02/business/976280/stabilisation-of-fuel-prices-through-government-subsidy/

CSE down for second consecutive month
The Colombo stock market, which has been on the up since May 2025, has declined for two consecutive months in February and March 2026.
Source: (Daily FT) https://www.ft.lk/front-page/CSE-down-for-second-consecutive-month/44-790410

T-Bill yields continue upward trajectory
weekly Treasury Bill auction conducted on Tuesday saw weighted average yields increase across the board for the for the second consecutive week. Accordingly, the yield on the 91-day Bill rose by 16 basis points to 7.80%, the 182-day bill increased by 14 basis points to 8.09%, while the 364-day bill saw an uptick of 09 basis points to 8.41%.
Source: (Daily FT) https://www.ft.lk/business/T-Bill-yields-continue-upward-trajectory/34-790385

JKH completes sale of Cinnamon Citadel owning entity for Rs. 2.78 b
John Keells Holdings PLC (JKH) on Tuesday said it completed the divestment of its subsidiary John Keells Hotels PLC’s majority stake in Kandy Walk Inn Ltd., (KWIL), the owning company of Cinnamon Citadel in Kandy, on 31 March.
Source: (Daily FT) https://www.ft.lk/front-page/JKH-completes-sale-of-Cinnamon-Citadel-owning-entity-for-Rs-2-78-b/44-790408

DFCC Bank engages export sector as global trade conditions grow more demanding
DFCC Bank said Sri Lanka’s export sector is operating under increasingly complex global trade conditions, with currency volatility, payment risks, and shifting market dynamics reshaping how businesses approach growth, following its participation in recent industry discussions at the Export Acceleration Program hosted by the Ceylon Chamber of Commerce.
Source: (Daily FT) https://www.ft.lk/financial-services/DFCC-Bank-engages-export-sector-as-global-trade-conditions-grow-more-demanding/42-790390

AIA Insurance Lanka partners BOC to offer DTA policy covers for customers
AIA Insurance Lanka Limited has strengthened its partnership distribution capabilities by signing a Memorandum of Understanding (MoU) with the Bank of Ceylon (BOC), Sri Lanka’s leading state-owned bank, to offer Decreasing Term Assurance (DTA)policy covers to BOC customers.
Source: (Daily News) https://dailynews.lk/2026/04/02/business/976202/aia-insurance-lanka-partners-boc-to-offer-dta-policy-covers-for-customers/