SenFin Research – News Updates – 3 April 2026

Government decides strict management of public expenditure
The Government has decided to strictly manage public expenditure to minimise the impact on the country’s economy due to the prevailing war situation in the Middle East region.
Source: (Daily News) https://dailynews.lk/2026/04/03/business/976882/government-decides-strict-management-of-public-expenditure/

IMF tells Sri Lanka to safeguard economic stability
Discussions yesterday between President Anura Kumara Dissanayake and the visiting International Monetary Fund (IMF) delegation centred on how Sri Lanka can continue to advance within the Extended Fund Facility (EFF) program without undermining the economic stability achieved so far, amid fresh external pressures from the Middle East conflict.
Source: (Daily FT) https://www.ft.lk/top-story/IMF-tells-Sri-Lanka-to-safeguard-economic-stability/26-790418

Crisis Response: ‘Low-income, energy importing nations at risk’
Energy importing, low income countries that are the most exposed to the downstream impacts from the US-Israel war on Iran, with limited policy space and higher levels of debt, stand to be most adversely impacted, the International Monetary Fund, World Bank and International Energy Agency (IEA) recognised in a statement, announcing a crisis response recently
Source: (the morning) https://www.themorning.lk/articles/aBt81vk4Zu2dFiPpA3WA

US$ 2bn World Bank-backed plan to power Sri Lanka’s next growth phase
The World Bank Group and the Government of Sri Lanka launched a new five-year Country Partnership Framework (CPF) to support Sri Lanka’s continued recovery, help achieve its 7 percent medium-term economic growth target, and support job creation.
Source: (Daily Mirror) https://www.dailymirror.lk/business/US-2bn-World-Bank-backed-plan-to-power-Sri-Lankas-next-growth-phase/215-337034

Gold slips over 1% as Trump’s Iran stance dents momentum
Gold prices fell sharply yesterday (April 02), snapping a four-day winning streak, after U.S. President Donald Trump signalled an escalation in the ongoing conflict with Iran, dampening investor sentiment and triggering a broader market pullback.
Source: (Daily News) https://dailynews.lk/2026/04/03/business/976922/gold-slips-over-1-as-trumps-iran-stance-dents-momentum/

Tourist arrivals dip 20% in March on Mideast war
Sri Lanka’s tourism sector lost momentum in March, with arrivals falling sharply as escalating conflict in the Middle East disrupted global aviation networks, even as the country maintained modest overall growth for the year.
Source: (Daily FT) https://www.ft.lk/front-page/Tourist-arrivals-dip-20-in-March-on-Mideast-war/44-790421

Construction: Activity expands, slower growth in Feb.
The Sri Lanka Purchasing Managers’ Index for Construction (PMI – Construction), as reflected by the Total Activity Index, recorded a value of 70.3 in February, reflecting an expansion in construction activities, though at a slower pace compared to the significantly higher level observed in the previous month.
Source: (the morning) https://www.themorning.lk/articles/zgmdeqkv96BgEskuY2OI

Oil and gas rally leaves S&P 500 behind in record-breaking run
Long-suffering energy investors finally have a reason to smile, with the sector on track to outperform the broader market by its widest margin on record, driven by Middle East conflict, rising demand from the AI boom, and a continued rotation away from expensive technology and growth stocks.
Source: (the morning) https://www.themorning.lk/articles/29ihmYZCNuFiM3wG088g

Brent Oil Dips Below $100 as Trump Signals End to Iran War
Brent Crude oil futures plunged by 4% early on Wednesday to trade below $100 per barrel for the first time in a week, after U.S. President Donald Trump signaled the war in Iran could end within three weeks.
Source: (oil price.com) https://oilprice.com/Latest-Energy-News/World-News/Brent-Oil-Dips-Below-100-as-Trump-Signals-End-to-Iran-War.amp.html

Government hopes to reduce pressure on current tax payers – Dr. Harshana Suriyapperuma
Secretary to the Ministry of Finance Dr. Harshana Suriyapperuma said the Government hopes to reduce the pressure on the current tax payers and focus on reducing tax rates.
Source: (Daily News) https://dailynews.lk/2026/04/03/business/976905/government-hopes-to-reduce-pressure-on-current-tax-payers-dr-harshana-suriyapperuma/

Government’s primary strategy is to expand tax base – Nishantha Jayaweera
Making a special statement on the occasion of the 94th Anniversary celebrations of the Inland Revenue Department (IRD), Deputy Minister of Economic Development Nishantha Jayaweera stated that the Government’s primary strategy is to expand the tax base by way of including all taxpayers to the tax net.
Source: (Daily News) https://dailynews.lk/2026/04/03/business/976925/governments-primary-strategy-is-to-expand-tax-base-nishantha-jayaweera/

Fuel distribution: EDB and CPC convene with exporters
A discussion focused on establishing a reliable and prioritised fuel supply mechanism for export-oriented industries was recently held between the top representatives of the Export Development Board (EDB), Ceylon Petroleum Corporation (CPC) and a broad cross-section of Sri Lanka's export industry.
Source: (the morning) https://www.themorning.lk/articles/ohPMN39nU6vtHe9nJaJS

IRD defers VAT invoice format rollout to 1 July
The Inland Revenue Department (IRD) has further deferred the implementation of the new tax invoice format and specifications for Value Added Tax (VAT) registered persons to 1 July 2026, extending the previously announced 1 April deadline.
Source: (Daily FT) https://www.ft.lk/front-page/IRD-defers-VAT-invoice-format-rollout-to-1-July/44-790407

Sri Lanka rupee closes stronger, bond yields steady
Sri Lanka’s rupee closed at 315.30/40 to the US dollar in the spot market Thursday, from 315.60/80 the previous day, dealers said, while bond yields were broadly steady.
Source: (economynext) https://economynext.com/sri-lanka-rupee-closes-stronger-bond-yields-steady-266108/

Sri Lanka rupee depreciation slams democracy amid sound money in Qatar, Dubai
Sri Lanka’s rupee is now under pressure after the central bank loaded the dice against the rupee with excess liquidity from swaps and arbitrary interventions that busted confidence, while money in the war zone, protected from macro-economists, is sound as a bell.
Source: (economynext) https://economynext.com/sri-lanka-rupee-depreciation-slams-democracy-amid-sound-money-in-qatar-dubai-265889/

Sri Lanka stocks close up 0.43-pct, bank stocks push turnover
The Colombo Stock Exchange All Share Price Index closed up 0.43 percent on Tuesday, while the S&P SL20 fell 0.26 percent, CSE data showed.
Source: (economynext) https://economynext.com/sri-lanka-stocks-close-up-0-43-pct-bank-stocks-push-turnover-266092/

Chevron Lanka exceeds LKR 4 Bn in earnings a first in 32-years
Chevron Lubricants Lanka PLC (Chevron Lanka) (LLUB), a listed entity in the Colombo Securities Exchange (“CSE”), notched up record earnings in 2025, the highest ever in its 32-year history of operations in Sri Lanka. Earnings surpassed the LKR 4 billion milestone for the first time, on a topline of LKR 24.39 billion based on the fourth quarter 2025 interim financial statements released to the CSE.
Source: (Daily News) https://dailynews.lk/2026/04/03/business/976806/chevron-lanka-exceeds-lkr-4-bn-in-earnings-a-first-in-32-years/

Siyapatha Finance records exceptional financial performance for FY25
Sri Lanka’s homegrown financial institution Siyapatha Finance PLC displayed robust financial performance for the year ended 31st December 2025, reflecting the Company’s continued strategic growth initiatives, solid asset quality, and resilience amidst volatile economic conditions.
Source: (Daily News) https://dailynews.lk/2026/04/03/business/976928/siyapatha-finance-records-exceptional-financial-performance-for-fy25/

Lanka Milk Foods recovers Rs. 309.3 m from legal claim
Lanka Milk Foods (CWE) PLC yesterday said it has recovered over Rs. 309.3 million from a longstanding legal claim arising from a breach of contract.
Source: (Daily FT) https://www.ft.lk/front-page/Lanka-Milk-Foods-recovers-Rs-309-3-m-from-legal-claim/44-790420

WindForce proposes Rs. 4 b Green Bond issue
WindForce PLC yesterday said that its Board of Directors have proposed to raise Rs. 4 billion via a Green Bond issue.
Source: (Daily FT) https://www.ft.lk/front-page/WindForce-proposes-Rs-4-b-Green-Bond-issue/44-790419

People’s Leasing raises Rs.10bn via private placement to bolster Tier 2 capital
People’s Leasing & Finance PLC has completed a Rs.10 billion subordinated debt raising through a private placement, strengthening its regulatory capital base at a time when non-bank financial institutions are under pressure to sustain growth while meeting tighter capital adequacy thresholds.
Source: (Daily Mirror) https://www.dailymirror.lk/business/Peoples-Leasing-raises-Rs-10bn-via-private-placement-to-bolster-Tier-2-capital/215-337030

Sri Lanka’s NDB reports major fraud, warns losses may exceed Rs380mn
Sri Lanka’s National Development Bank said it had detected a fraud committed by some employees in connivance with a third party or parties and has referred the matter for investigation and necessary action to the law enforcement authorities.
Source: (economynext) https://economynext.com/sri-lankas-ndb-reports-major-fraud-warns-losses-may-exceed-rs380mn-266170/