SenFin Research – News Updates – 20 October 2026

Major setback as Chinese firm abandons US$392 million Sri Lanka investment
China Merchants Port Holdings has withdrawn from a proposed US$392 million logistics hub project at the Port of Colombo, with the Sri Lanka Ports Authority (SLPA) agreeing to a US$21.9 million settlement following the cancellation.
Source: (Newswire) https://www.newswire.lk/2026/10/18/major-setback-as-chinese-firm-abandons-us392-million-sri-lanka-investment/

Budget 2027: Total govt expenditure reaches Rs 4.99 t, capex up 24.7%
Sri Lanka’s total government expenditure for 2027 is set to expand by 12.6% year-on-year to Rs 4.993 trillion, up from Rs 4.434 trillion in 2026.
Source: (the morning) https://www.themorning.lk/articles/ZTA97tYbXJwU6ipek4LG

CBSL Governor confident of US$ 8.2bn reserves by year-end as buffer against ME, El Niño shocks
Sri Lanka’s gross official reserves are expected to climb to around US$ 8.2 billion by year-end on the back of earmarked inflows, creating a buffer against a prolonged Middle East conflict and El Niño-driven drought next year, Central Bank of Sri Lanka (CBSL) Governor Dr. P. Nandalal Weerasinghe told CNBC’s Squawk Box Asia on Friday.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/CBSL-Governor-confident-of-US-8-2bn-reserves-by-year-end-as-buffer-against-ME-El-Ni%C3%B1o-shocks/273-352836

Sri Lanka IRD urges 1.2-mn taxpayers to file returns before Nov 30 deadline
Sri Lanka’s Inland Revenue Department (IRD) has urged close to 1.2 million registered individual taxpayers to file their 2025/2026 income tax returns online before the November 30 deadline, warning of penalties and legal action for non-compliance.
Source: (economynext) https://economynext.com/sri-lanka-ird-urges-1-2-mn-taxpayers-to-file-returns-before-nov-30-deadline-287144/https://economynext.com/sri-lanka-ird-urges-1-2-mn-taxpayers-to-file-returns-before-nov-30-deadline-287144/

Sri Lanka drops $280mn Colombo Port logistics JV with China Merchants, calls new PPP bids
The Sri Lanka Ports Authority (SLPA) will seek a private partner through competitive bidding to build a new logistics hub at the Port of Colombo, after scrapping an earlier 280 million US dollar joint venture with China Merchants Port Holdings and Access Engineering PLC.
Source: (economynext) https://economynext.com/sri-lanka-drops-280mn-colombo-port-logistics-jv-with-china-merchants-calls-new-ppp-bids-287152/


Global financial markets face rising risks from AI, bond yields, and cyberattacks: IMF
Financial markets have remained resilient amid solid economic growth and strong corporate earnings, while financial conditions have been relatively accommodative.
Source: (economynext) https://economynext.com/global-financial-markets-face-rising-risks-from-ai-bond-yields-and-cyberattacks-imf-287185/

Single-day surge lifts October tourist arrivals 2.9% at mid-month
Sri Lanka welcomed 77,868 tourists in the first 15 days of October, 2.9 percent more than the 75,655 recorded over the same period last year, as per Sri Lanka Tourism Development Authority (SLTDA) data.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Single-day-surge-lifts-October-tourist-arrivals-2-9-at-mid-month/273-352832

Tourism: SL records $ 2.24 b earnings in 9M
Sri Lanka’s tourism earnings exceeded $ 2,200 million during the first nine months of the year, from January to September, according to data published by the Central Bank of Sri Lanka (CBSL).
Source: (the morning) https://www.themorning.lk/articles/LmKfqmdJJvxWeD5X9z46

Oil prices stay high as war keeps supply tight into 2027
During the first three months or so of the US and Israeli war with Iran, the dominant mood on oil markets was that the conflict would end any day now.
Source: (the morning) https://www.themorning.lk/articles/45NAO8tA4mUBz4EbKsoz

Sri Lanka rupee closes weaker at 331.60/70 to US dollar spot, bond yields higher
Sri Lanka’s rupee closed at 331.60/770 to the US dollar in the spot market on Monday, weaker from 331.25/35 the previous day, while bond yields closed higher, dealers said.
Source: (economynext) https://economynext.com/sri-lanka-rupee-closes-weaker-at-331-60-70-to-us-dollar-spot-bond-yields-higher-287175/

Sri Lanka shares close down on Monday; ASPI falls 0.62-pct
Sri Lanka’s Colombo Stock Exchange closed down on Monday, CSE data showed, with the benchmark All Share Price Index falling 0.62 percent.
Source: (economynext) https://economynext.com/sri-lanka-shares-close-down-on-monday-aspi-falls-0-62-pct-287167/

Vidullanka and David Pieris add 10 MW of solar power to national grid
Vidullanka PLC, in partnership with David Pieris Motor Company yesterday inaugurated the 10 MW DPV Solar Power Plant in Ranna, making significant strides in Sri Lanka’s renewable energy journey.
Source: (Daily Ft) https://www.ft.lk/business/Vidullanka-and-David-Pieris-add-10-MW-of-solar-power-to-national-grid/34-798905