SenFin Research – News Updates – 21 June 2026

SenFin Research – News Updates – 21 June 2026


US forced labour concerns beyond SL’s control?
Concerns raised by the United States over forced labour in supply chains are beyond Sri Lanka’s control, according to Government officials who cite the country’s heavy dependence on imported raw materials as the principal reason for the issue.
Source: (the morning) https://www.themorning.lk/articles/fyaO3PFzbyyjksKUkG1s

Will the global economy go back to being normal now?
Over the last few weeks, there has been one bit of positive news. The Iran war might be over, at least temporarily, for 60 days; there is a chance that it might be coming to a more permanent end.
Source: (the morning) https://www.themorning.lk/articles/5cQNLbBZmdTZEHDLnvFb

Sri Lanka’s economy, despite challenges, grew by 5.1% in 1Q 2026–DCS
Sri Lanka’s economy grew by 5.1 per cent in the first quarter of this year (2026) despite challenges from the adverse impact of Cyclone Ditwah and tensions in the Gulf region, the Department of Census and Statistics Department (DCS) said on Monday, in releasing the latest GDP data.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/sri-lankas-economy-despite-challenges-grew-by-5-1-in-1q-2026-dcs-646305.html

Extreme weather could cause food crisis in Sri Lanka
El Nino is set to make an adversely significant impact on Sri Lanka if the country does not ready itself for the consequences of impending drought-like conditions followed by flash floods causing a severe food crisis.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/extreme-weather-could-cause-food-crisis-in-sri-lanka-646462.html

Fuel price drop suspended till Sept. despite global oil slump
Sri Lankan fuel prices are highly likely to remain steady at their current levels until August or September despite global crude prices dropping following a historic Gulf ceasefire accord signed by US and Iran this week, Ceylon Petroleum Corporation (CPC) sources confirmed.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/fuel-price-drop-suspended-till-sept-despite-global-oil-slump-646425.html

The Middle East’s New Normal

NEW YORK — In recent weeks, the world’s attention has centred on how the Iran war will end, whether the United States and the Islamic Republic can reach a ceasefire agreement (this was due to be finalised on June 19), and how Israel will respond
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/the-middle-easts-new-normal-646332.html

Peak oil demand has arrived
NEW YORK—The US/Israeli-Iran war may be remembered for many things, not least the closure of the Strait of Hormuz, the reshaping of Middle Eastern geopolitics, and the damage done to the global economy.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/peak-oil-demand-has-arrived-646309.html

The numbers don’t lie — but do we know how to read them?
Statistics, like roads, can take you in completely different directions depending on which way you are facing.
Source: (Sunday Observer) https://www.sundayobserver.lk/2026/06/21/business/79614/the-numbers-dont-lie-but-do-we-know-how-to-read-them/

India pushes for greater Rupee trade with Sri Lanka
India has called for a greater shift towards local currency trade settlement with Sri Lanka, in that the increased use of the Indian Rupee and Sri Lankan Rupee could reduce transaction costs, ease pressure on foreign exchange reserves and strengthen economic resilience between the two countries.
Source: (Sunday Observer) https://www.sundayobserver.lk/2026/06/21/business/79617/india-pushes-for-greater-rupee-trade-with-sri-lanka/

New country partnership framework 2026-2030
The World Bank Group has committed up to US$1 billion in concessional financing over the next three years to support Sri Lanka’s development goals, according to the new Country Partnership Framework (CPF) for 2026-2030.
Source: (Sunday Observer) https://www.sundayobserver.lk/2026/06/21/business/79611/new-country-partnership-framework-2026-2030/

Stock market regulator –SEC– expands enforcement arsenal
Sri Lanka’s capital market regulator has entered a historic settlement with an investor for Rs. 188.1 million on market manipulation, representing the largest settlement sum in the commission’s history which was enabled under the Securities and Exchange Commission (SEC) of Sri Lanka Act, No. 19 of 2021
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/stock-market-regulator-sec-expands-enforcement-arsenal-646468.html

SEC warning on investments in foreign stock markets
The Securities and Exchange Commission (SEC) has issued a note and a warning to beware of investments by ‘dud agents’ promoting stocks overseas.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/sec-warning-on-investments-in-foreign-stock-markets-646322.html

SL tourism posts strong rebound
Sri Lanka’s tourism sector has staged a strong recovery from a disruption-hit start to the year, with May tourist arrivals outpacing global and regional peers, according to the Sri Lanka Tourism Development Authority (SLTDA).
Source: (the morning) https://www.themorning.lk/articles/Zqx326kWI45J8kynt3SB

The tourists who came, and the dollars that did not
Sri Lanka does not have many easy economic wins left. It cannot manufacture scale overnight, cannot rebuild export complexity by slogan, cannot borrow its way back into comfort, and cannot depend forever on remittances sent by citizens who left because the economy at home failed to offer them enough.
Source: (the morning) https://www.themorning.lk/articles/KjWCrFmbKUL7yoICiK9o

SL’s rubber industry prepares for EU Deforestation Regulations
As global markets place increasing emphasis on sustainable and deforestation-free supply chains, Sri Lanka’s rubber sector is taking proactive steps to strengthen its competitiveness.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/sls-rubber-industry-prepares-for-eu-deforestation-regulations-646376.html

Fitch on higher Gold-Loan risk weights
Fitch Ratings said this week that it believes the Central Bank of Sri Lanka’s tighter capital treatment for gold-backed lending will have a mostly manageable impact on rated banks’ and finance companies’ capital ratios, while supporting risk profiles.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/fitch-on-higher-gold-loan-risk-weights-646348.html

Govt. securities market turns a corner
The Government securities market turned a corner last week as Treasury bill (T-bill) yields in the primary market declined for the first time since mid-May, marking a significant milestone in the market’s recovery from the panic that had gripped it following the Central Bank of Sri Lanka’s (CBSL) 100 basis point policy rate hike last month.
Source: (the morning) https://www.themorning.lk/articles/UAWB39LOVjf1BnfupTh9

It is not a weak rupee, it is weak policy
At the end of March, the Sri Lankan Rupee was trading at around Rs. 310 to the US Dollar. By the week before 21 May, it had moved to around Rs. 321–326. On 21 May, the exchange rate moved sharply, fluctuating between Rs. 331 and Rs. 348, before settling again at around Rs. 328–330.
Source: (the morning) https://www.themorning.lk/articles/CYE6f7UbkJiricYQ1CRi

Hemas Holdings in 2025/26 records strongest earnings for the group
Hemas Holdings PLC this week announced record earnings for both the fourth quarter (Q4) and full financial year FY26, marking a historic milestone for the group.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/hemas-holdings-in-202526-records-strongest-earnings-for-the-group-646394.html

Volt Charge largest in SL’s EV charging network
Volt Charge, part of JAT Holdings, has established itself as the largest EV charging network in Sri Lanka, marking a significant milestone in the country’s emerging electric mobility infrastructure sector, the company said in a media release.
Source: (Sunday Times) https://www.sundaytimes.lk/260621/business-times/volt-charge-largest-in-sls-ev-charging-network-646298.html