SenFin Research – News Updates – 24 August 2026

Narrowing US-India yield spread: Multilateral borrowing set to get costlier: WB
With the United State’s 10-year yields reaching 4.7% on Friday (21) and India’s 10-year yields reaching 6.7%, developing countries such as Sri Lanka may increasingly face higher capital costs from multilaterals going forward, World Bank Executive Director for India, Bangladesh, Sri Lanka and Bhutan Neelkanth Mishra said, speaking to The Indian Express, in an interview published last week (22). Source: (the morning) https://www.themorning.lk/articles/jY3FQfC0xsJBAORRUaSz

Sri Lanka steps up capital investment for growth
Sri Lanka plans to allocate around 4.5% of GDP for capital expenditure in next year’s (2027) Budget, with the Government prioritising investment facilitation, infrastructure development and private-sector-led production to build a stronger and more competitive economy, Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayantha Fernando told Sunday Observer Business. Source: (Sunday Observer) https://www.sundayobserver.lk/2026/08/23/business/83080/sri-lanka-steps-up-capital-investment-for-growth/

SL spends $ 3,168 m on fuel in H1 2026: PM
Prime Minister Dr Harini Amarasuriya revealed that approximately $ 3,168 million was spent on fuel import expenditure during the first half of this year, making the cumulative spend significantly larger compared to the corresponding period in 2025. Source: (the morning) https://www.themorning.lk/articles/8AEcqISabs2PzuZ3kFlA

How US$ 1b escaped Sri Lanka’s banking controls
Pointing to an escalating trend, investigators in Sri Lanka have uncovered a massive financial fraud involving some US$715 million (over Rs. 214 billion) routed overseas via payments for imports at several private banks. Source: (Sunday Observer) https://www.sundayobserver.lk/2026/08/23/business/83070/how-us-1b-escaped-sri-lankas-banking-controls/

Sri Lanka targets another US$4.1 billion in Port City Colombo investments
Sri Lanka is targeting a further US$4.1 billion in investments to the Port City Colombo over the next five years, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said. Source: (Newswire) https://www.newswire.lk/2026/08/23/sri-lanka-targets-another-us4-1-billion-in-port-city-colombo-investments/

Tourism earnings fall 11.5% in first seven months to $ 1.79 b
Sri Lanka’s tourism earnings fell 11.5% year-on-year (YoY) to $ 1.79 billion in the first seven months of 2026, leaving the industry facing an increasingly difficult race to meet an ambitious revenue target amid renewed uncertainty in the Middle East. Source: (Daily FT) https://www.ft.lk/front-page/Tourism-earnings-fall-11-5-in-first-seven-months-to-1-79-b/44-796445#

Could Sri Lanka Hit 40°C in 2027? 1983 Heat Record Under Threat
Sri Lanka has recently experienced temperatures approaching historical highs, with some areas nearing the 40°C mark, meteorologist Malith Fernando of the Department of Meteorology has said. Source: (Newswire) https://www.newswire.lk/2026/08/23/could-sri-lanka-hit-40c-in-2027-1983-heat-record-under-threat/

Foreign holdings in rupee Treasuries highest since 2016
Foreign holdings in rupee-denominated Government securities crossed the Rs. 200 billion mark last week to reach their highest level in almost eight years, while the rupee strengthened below Rs. 330 against the US dollar for the first time in over 12 weeks, according to Wealth Trust Securities. Source: (Daily FT) https://www.ft.lk/front-page/Foreign-holdings-in-rupee-Treasuries-highest-since-2016/44-796446

Foreign holdings in Rupee Treasuries breaks Rs. 200 b mark; hits 8-year high
Foreign investor appetite for rupee-denominated Government securities remained strong, with the market recording a net inflow of Rs. 8.30 billion during the week ended 20 August. This marked the eleventh consecutive week of net foreign inflows, lifting total foreign holdings of rupee Treasuries to Rs. 202.51 billion, their highest level in almost eight years since November 2018. Source: (Daily FT) https://www.ft.lk/financial-services/Foreign-holdings-in-Rupee-Treasuries-breaks-Rs-200-b-mark-hits-8-year-high/42-796423

Exports: Sierra Cables sees $ 3.2 m capital investment
Sierra Cables PLC has officially announced a major capital investment of $ 3,229,760 aimed at expanding its export production capacity. The strategic move comes in response to sustained, robust demand for the company's products in overseas markets. Source: (the morning) https://www.themorning.lk/articles/Jb4lplmxZOakqfTe16o9

Financials: People’s Bank records Rs 32.6 b PBT in H1 2026
People’s Bank recorded a standalone Profit Before Tax (PBT) of Rs 32.6 billion for the six months ended 30 June 2026, together with a record profit after tax of Rs 20.5 billion. The bank’s profitability was underpinned by broad-based growth across the bank’s core income streams. Total operating income increased by 17.7% to Rs 95.2 billion, compared with Rs 80.9 billion in the corresponding period of the previous year, while net interest income grew by 18.9% to Rs 82.4 billion, from Rs 69.3 billion. Source: (the morning) https://www.themorning.lk/articles/PxUHK35LU0IGmqQD9tQ9

People’s Insurance achieves 39% GWP and 63% PBT growth in 1H
The People’s Insurance PLC has reported a strong performance for the first half of 2026, with Gross Written Premium (GWP) rising by nearly 39% year-on-year to Rs. 5.21 billion, significantly outperforming the 23% growth recorded by Sri Lanka’s general insurance industry. Source: (Daily FT) https://www.ft.lk/financial-services/People-s-Insurance-achieves-39-GWP-and-63-PBT-growth-in-1H/42-796427

Commercial Bank named ‘Sri Lanka’s Strongest Banking Brand’ with prestigious AAA rating by Brand Finance
Reflecting its unwavering stability and the enduring trust of customers, Commercial Bank of Ceylon has once again reaffirmed its leadership as Sri Lanka’s Strongest Banking Brand in Brand Finance’s just released ‘100 Most Valuable Brands 2026’ report. Source: (Daily FT) https://www.ft.lk/financial-services/Commercial-Bank-named-Sri-Lanka-s-Strongest-Banking-Brand-with-prestigious-AAA-rating-by-Brand-Finance/42-796422