SenFin Research – News Updates – 21 March 2026

Economist warns debt strain, stagflation risks rising
Former Central Bank Deputy Governor Dr. W.A. Wijewardena has warned that Sri Lanka is entering a more vulnerable phase where Government debt sustainability, interest rate dynamics and growth prospects are increasingly exposed to external shocks, particularly from the ongoing Middle East conflict.
Source: (Daily FT) https://www.ft.lk/front-page/Economist-warns-debt-strain-stagflation-risks-rising/44-789886

Sri Lanka’s tourism, tea, textile shares suffer after Gulf escalation
Soon after the United States and Israel started bombing Iran on February 28, Sri Lanka’s booming stock market took a hit.
Source: (economynext) https://economynext.com/sri-lankas-tourism-tea-textile-shares-suffer-after-gulf-escalation-264669/

IMF flags Middle East risks; to assess impact, support for Sri Lanka
The International Monetary Fund (IMF) has flagged Sri Lanka’s significant exposure to the Middle East conflict and said it will assess the potential economic impact and how best to support the country during its upcoming mission, as authorities seek to complete a combined Fifth and Sixth Review under the Extended Fund Facility program.
Source: (Daily FT) https://www.ft.lk/front-page/IMF-flags-Middle-East-risks-to-assess-impact-support-for-Sri-Lanka/44-789885

President says Govt. to revise fuel pricing, taxes urgently as ME crisis disrupts energy supply
President Anura Kumara Dissanayake yesterday told Parliament that the Government will move quickly to revise fuel pricing, review taxation and expand procurement measures to manage the impact of the Middle East crisis, warning that delays could affect supply.
Source: (Daily FT) https://www.ft.lk/top-story/President-says-Govt-to-revise-fuel-pricing-taxes-urgently-as-ME-crisis-disrupts-energy-supply/26-789887

Untapped Sri Lankan insurance market holds strong growth potential: AIA Chief
Sri Lanka’s largely underpenetrated insurance sector presents significant economic and societal opportunities as the country transitions from crisis-era stabilisation toward sustained economic expansion.
Source: (Daily Mirror) https://www.dailymirror.lk/business-main/Untapped-Sri-Lankan-insurance-market-holds-strong-growth-potential-AIA-Chief/245-335942

Sri Lanka’s construction sector urged to embrace C2C certification for sustainable growth
Adopting the globally recognised Cradle to Cradle (C2C)-certified standard can help the local companies remain competitive in an increasingly sustainability-focused global market, Cradle to Cradle Products Innovation Institute Director Built Environment Ren DeCherney said.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Sri-Lankas-construction-sector-urged-to-embrace-C2C-certification-for-sustainable-growth/273-335940

US weighs easing curbs on Iranian oil in transit to ease price surge
US Treasury Secretary Scott Bessent said Washington is considering easing sanctions on Iranian oil already in transit as energy prices rise sharply amid the Middle East conflict.
Source: (Daily FT) https://www.ft.lk/front-page/US-weighs-easing-curbs-on-Iranian-oil-in-transit-to-ease-price-surge/44-789877

Sri Lanka rupee weaker, bond yields recover
Sri Lanka’s rupee closed at 311.80/312.00 to the US dollar in the spot market Friday, weakening from 311.50/65 the previous day, dealers said, while bond yields closed lower.
Source: (economynext) https://economynext.com/sri-lanka-rupee-weaker-bond-yields-recover-264663/

Sri Lanka stocks end the week up, having dropped 4.85-pct from last Friday
Sri Lanka’s Colombo Stock Exchange closed up on Friday, with capital goods generating the most turnover. The market has dropped 4.85 percent from last Friday.
Source: (economynext) https://economynext.com/sri-lanka-stocks-end-the-week-up-having-dropped-4-85-pct-from-last-friday-264652/

Oil retreats from $119 peak as Iran conflict rattles markets
Oil prices eased on Friday after sharp gains driven by the escalating Iran conflict, while Asian equities traded mostly lower following overnight losses on Wall Street.
Source: (Daily FT) https://www.ft.lk/front-page/Oil-retreats-from-119-peak-as-Iran-conflict-rattles-markets/44-789878