SenFin Research – News Updates – 2 November 2026

Sri Lanka current account returns to deficit in Sep 2026
Sri Lanka’s external current account returned to a deficit in September 2026 after recording a surplus a month earlier, even as merchandise export earnings rose, according to data released by the central bank.
Source: (economynext) https://economynext.com/sri-lanka-current-account-returns-to-deficit-in-sep-2026-288397/

Business Sentiment: Optimism Fades as Budget Looms
The political spotlight remained firmly on allegations of corruption as fresh arrests and ongoing investigations dominated the headlines in October.
Source: (Ada Derana) https://bizenglish.adaderana.lk/news/250098

Ex-Central Banker says Govt. rejected 12% bids for $ 100 m Dollar Bond
The Government rejected all bids for a $ 100 million dollar-denominated Bond offered to local and diaspora investors after bidders sought yields of about 12%, a clear sign of the cost Sri Lanka will face when it returns to international capital markets, former Central Bank Deputy Governor Dr. W.A. Wijewardena said.
Source: (Daily Ft) http://ft.lk/front-page/Ex-Central-Banker-says-Govt-rejected-12-bids-for-100-m-Dollar-Bond/44-799513

Tax ‘overdose’ turning toxic, top economist warns Govt.
Former Central Bank Deputy Governor Dr. W.A. Wijewardena has called on the Government to slow its revenue drive in the 2027 Budget, warning that taxpayers are being squeezed by high income taxes, indirect taxes and inflation while receiving deteriorating public services in return.
Source: (Daily Ft) https://www.ft.lk/front-page/Tax-overdose-turning-toxic-top-economist-warns-Govt/44-799514

Tax compliance: VAT non-filings rise despite improved filing
Sri Lanka's non-filings of Value Added Tax (VAT) increased even as on-time filing improved in Q1 2026 - with non-large taxpayers' non-filing rising from 12.3% in 2025 to 19.1% in Q1 2026, and lagging by almost 30 percentage points in compliance compared with large taxpayers, the Sri Lanka Revenue Administration Diagnostic Technical Assistance report released by the Ministry of Finance on Friday (30) said.
Source: (the morning) https://www.themorning.lk/articles/RCZ6AOMo7PwudznnshWP

Sri Lanka unlikely to face crisis in 2028: CBSL
Sri Lanka is unlikely to face another economic crisis in 2028 despite potential uncertainties over debt repayments in 2027, as current economic indicators do not point towards a renewed crisis, Central Bank of Sri Lanka (CBSL) Director of Economic Research Dr L R C Pathberiya said on Thursday (29).
Source: (the morning) https://www.themorning.lk/articles/efxSgJ3Ja7px8lSKHttk

Apparel exports grow, YTD remains cautious: JAAF
Though Sri Lanka’s apparel exports returned to growth in September 2026, total year-to-date earnings in the first nine months remain behind earnings of last year, the Joint Apparel Association Forum (JAAF) said in a statement released recently.
Source: (the morning) https://www.themorning.lk/articles/hs9XkcqKosoQJhoyCixN

Merchandise Exports Hit All-Time High of $1.38Bn in September, But Current Account Slips into $128Mn Deficit
The external current account recorded a deficit of US$ 128 million in September 2026, following the surplus recorded in August 2026.
Source: (Ada Derana) https://bizenglish.adaderana.lk/news/250097

Sri Lanka Customs surpasses revenue goal for ninth straight month in Sept
Sri Lanka Customs exceeded its monthly target for the 10th month in a row in October, achieving the target before the month ended, official data showed.
Source: (economynext) https://economynext.com/sri-lanka-customs-surpasses-revenue-goal-for-ninth-straight-month-in-sept-288411/

Rupee down 6.8% YTD by end-October; reserves at $ 6.9 b
The Sri Lankan rupee weakened further in October, trading at Rs. 332.61 against the US dollar by end-month, from Rs. 330.83 at end-September and Rs. 309.99 at end-2025, Central Bank of Sri Lanka (CBSL) data showed.
Source: (Daily Ft) https://www.ft.lk/front-page/Rupee-down-6-8-YTD-by-end-October-reserves-at-6-9-b/44-799510

Oil slips more than 1% as talks continue on ending Iran war
Oil prices slipped more than 1% on ‌Monday after Iranian and Qatari officials held a third straight day of talks aimed at pushing for a deal to end the US-Israeli war on Iran.
Source: (Reuters) https://adaderana.lk/news/250921

Sri Lanka likely to see record fuel bill in 2026 despite declining monthly spending
Sri Lanka may see a record-high spending on fuel imports this year due to high global oil prices following the Middle Eastern conflict despite declining monthly fuel import bills, analysts say.
Source: (economynext) https://economynext.com/sri-lanka-likely-to-see-record-fuel-bill-in-2026-despite-declining-monthly-spending-288413/

CEYPETCO increases Petrol and Diesel prices
The Ceylon Petroleum Corporation (CEYPETCO) has increased the prices of several fuel types with effect from midnight today (November 1).
Source: (Daily Mirror) https://www.dailymirror.lk/breaking-news/CEYPETCO-increases-Petrol-and-Diesel-prices/108-353921

Vehicle import bill falls 34% in Sept.
The country spent $ 1,871 million on motor vehicle imports during January-September, Central Bank of Sri Lanka (CBSL) data showed, about 10% of the $ 18.7 billion spent on merchandise imports in the period.
Source: (Daily Ft) https://www.ft.lk/front-page/Vehicle-import-bill-falls-34-in-Sept/44-799511

Updated scale: Fitch takes action on 8 Sri Lankan Banks' national ratings
Fitch Ratings has taken the following actions on the National Long-Term Ratings of eight Sri Lankan banks following recalibration of the agency's Sri Lankan national rating scale in the wake of the recent sovereign rating upgrade:
Source: (the morning) https://www.themorning.lk/articles/ugtwJXH4zd8HZGZ3L5VU

Secondary Bond market yields close marginally higher
The secondary Bond market for the week ending 30 October witnessed an uptick in yields, with the elevated levels attracting strong absorptive buying interest that provided market support.
Source: (Daily Ft) https://www.ft.lk/financial-services/Secondary-Bond-market-yields-close-marginally-higher/42-799493

Sunshine Holdings records strong growth in 1HFY27 with revenue up 24.4% and PAT rising 44.3%
Diversified Sri Lankan conglomerate Sunshine Holdings PLC (CSE: SUN) reported strong top-line and bottom-line growth during the six months ended 30 September 2026 (1HFY27), recording a consolidated revenue of Rs. 40.2 billion, an increase of 24.4% year-on-year (YoY).
Source: (Daily Ft) https://www.ft.lk/business/Sunshine-Holdings-records-strong-growth-in-1HFY27-with-revenue-up-24-4-and-PAT-rising-44-3/34-799504

Pan Asia Bank delivers Rs. 3.59 b PAT, total assets grow 22% to nearly Rs. 375 b in 9-months
Pan Asia Banking Corporation PLC has reported a strong set of results for the first nine months of 2026, recording a Profit After Tax (PAT) of Rs. 3.59 billion, up 19% from the corresponding period last year, underpinned by solid growth in lending, deposits and fee-based income, alongside further improvements in asset quality.
Source: (Daily Ft) https://www.ft.lk/financial-services/Pan-Asia-Bank-delivers-Rs-3-59-b-PAT-total-assets-grow-22-to-nearly-Rs-375-b-in-9-months/42-799497