SenFin Research – News Updates – 27 May 2026

CBSL increases Overnight Policy Rate to 8.75%
The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) at its meeting held on Monday (25), decided to increase the Overnight Policy Rate (OPR) by 100 bps to 8.75%. The Board arrived at this decision after carefully considering the evolving conditions and outlook on the domestic and global fronts.
Source: (Daily News) https://dailynews.lk/2026/05/27/business/1001023/cbsl-increases-overnight-policy-rate-to-8-75/

Tourist arrivals recover 8% YoY in first 24 days of May, YTD total nears 1 m
Sri Lanka’s tourism industry regained its growth momentum in May despite earlier indications of moderating visitor inflows, with tourist arrivals during the first 24 days of the month rising 8.31% year-on-year (YoY).
Source: (Daily FT) https://www.ft.lk/front-page/Tourist-arrivals-recover-8-YoY-in-first-24-days-of-May-YTD-total-nears-1-m/44-792502

Exports to European Union up by 4.97% in April
Exports to the European Union (EU), which represent 25.5% of Sri Lanka’s total merchandise exports, increased by 4.97 % in April 2026. Similarly, increased by 4.62 % during the cumulative period from January to April 2026.
Source: (Daily News) https://dailynews.lk/2026/05/27/business/1001046/exports-to-european-union-up-by-4-97-in-april/

Vehicle prices may rise amid surcharges and restrictions: importers
The Central Bank of Sri Lanka (CBSL) has indicated that vehicle prices could see a temporary increase due to higher surcharges imposed on vehicle imports and fluctuations in exchange rates.
Source: (the morning) https://www.themorning.lk/articles/hTVMVBH9COgmnsz2lRcG

CBSL Chief signals economic resilience and stability priority
The Central Bank Governor Dr. Nandalal Weerasinghe yesterday projected strong confidence in Sri Lanka’s economic resilience, insisting that the latest 100 basis point policy rate hike was a proactive measure to safeguard macroeconomic stability and sustain the country’s recovery momentum amid rising global uncertainties.
Source: (Daily FT) https://www.ft.lk/top-story/CBSL-Chief-signals-economic-resilience-and-stability-priority/26-792498

Sri Lanka’s Banking sector assures it is stable, equipped to address fraud incidents
Sri Lanka’s banking sector has provided a collective and categorical assurance that it remains stable, resilient, and secure despite a few recent isolated incidents of financial fraud, emphasising that these developments do not pose a threat to the safety of customer deposits or the overall integrity of the financial system.
Source: (Daily News) https://dailynews.lk/2026/05/27/business/1001020/sri-lankas-banking-sector-assures-it-is-stable-equipped-to-address-fraud-incidents/

CBSL assures FX distortions will not recur after interbank liquidity restored
The Central Bank of Sri Lanka yesterday signalled confidence that recent distortions in the foreign exchange market were unlikely to recur after measures taken late last week restored liquidity and trading activity in the interbank market.
Source: (Daily FT) https://www.ft.lk/front-page/CBSL-assures-FX-distortions-will-not-recur-after-interbank-liquidity-restored/44-792499

EXTERNAL SECTOR: SL to record highest remittances in 2026: SLBFE
Sri Lanka Bureau of Foreign Employment (SLBFE) Chairperson Koshala Wickramasinghe stated that Sri Lanka is expected to record the highest volume of migrant worker remittances in its history by the end of 2026.
Source: (the morning) https://www.themorning.lk/articles/7Au8fpjSI4N1vnbQRuEL

Customs distorting FX market with Rs. 351 exchange rate for import valuations
Making a volatile situation worse, Sri Lanka Customs has maintained the USD exchange rate used for import valuations at Rs. 351.17 for transactions between 25 and 29 May, according to a Customs circular seen by Daily FT, despite the rupee recovering in the interbank market since last Friday.
Source: (Daily FT) https://www.ft.lk/front-page/Customs-distorting-FX-market-with-Rs-351-exchange-rate-for-import-valuations/44-792500

Sri Lanka Treasury bill yields spike, less bills sold
Sri Lanka’s Treasury bill yields jumped across maturities at Tuesday’s auction, data from the Public Debt Management Office showed, with 95.55 billion rupees bills sold of an offered 140 billion.
Source: (economynext) https://economynext.com/sri-lanka-treasury-bill-yields-spike-less-bills-sold-273199/

Rupee appreciates 7% against US dollar in three days
The rupee strengthened against the US dollar for the third consecutive session yesterday.
Source: (Daily FT) https://www.ft.lk/front-page/Rupee-appreciates-7-against-US-dollar-in-three-days/44-792501

Sri Lanka rupee spot closes at 324/325.50 to US dollar, bond yields up
Sri Lanka’s rupee closed at 324.00/325.50 to the US dollar in the spot market on Tuesday, from 325.50/327.00 the previous day, dealers said, while bond yields closed up.
Source: (economynext) https://economynext.com/sri-lanka-rupee-spot-closes-at-324-325-50-to-us-dollar-bond-yields-up-273192/

Sri Lanka stocks close down, insurance leads turnover
Sri Lanka’s Colombo Stock Exchange closed down on Tuesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.85 percent.
Source: (economynext) https://economynext.com/sri-lanka-stocks-close-down-insurance-leads-turnover-273210/

People’s Bank achieves PBT of Rs 16.6 Bn in Q1-2026 amid global uncertainty
People’s Bank posted a standalone PBT of LKR 16.6 billion for Q1 2026, reflecting resilience amid global uncertainty. People’s Bank delivered a strong and resilient financial performance for the quarter ended 31 March 2026, maintaining stability amidst heightened geopolitical tensions and continued global economic uncertainty. The Bank recorded a standalone Profit Before Tax (PBT) of LKR 16.6 billion during the period, reflecting the strength of its underlying fundamentals, prudent balance sheet management, and disciplined risk management practices.
Source: (Daily News) https://dailynews.lk/2026/05/27/business/1001017/peoples-bank-achieves-pbt-of-rs-16-6-bn-in-q1-2026-amid-global-uncertainty/

Lanka Ashok Leyland reports strong FY 2025/26 performance and declares 300% dividend
Lanka Ashok Leyland PLC recorded an outstanding financial performance for the year ended 31st March 2026, with Profit After Tax increasing to Rs. 3.06 billion compared to Rs. 1.53 billion in the previous year, while revenue grew significantly to Rs. 19.33 billion from Rs. 9.00 billion.
Source: (Daily News) https://dailynews.lk/2026/05/27/business/1001049/lanka-ashok-leyland-reports-strong-fy-2025-26-performance-and-declares-300-dividend/

JKH’s EBITDA tops Rs. 80 b mark with 75% growth
John Keells Holdings PLC (JKH) yesterday reported a strong financial performance for FY2025/26, with Group EBITDA increasing 75% to Rs.80.01 billion, reflecting the contribution of investments made over the past several years and the continued performance of the Group’s established businesses.
Source: (Daily FT) https://www.ft.lk/front-page/JKH-s-EBITDA-tops-Rs-80-b-mark-with-75-growth/44-792504

Ceylon Cold Stores absorbs inflationary shocks and climate disruptions to protect market share
Ceylon Cold Stores PLC, the operator of the Elephant House brand, has deliberately absorbed significant inflationary pressures and extreme weather-related disruptions during the financial year 2025/26, sacrificing short-term margin expansions to aggressively defend its consumer market share.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Ceylon-Cold-Stores-absorbs-inflationary-shocks-and-climate-disruptions-to-protect-market-share/273-341323