SenFin Research – News Updates – 3 June 2026

Inflation could rise to 7% amid ME conflict: CBSL Governor
Sri Lanka’s inflation rate has a possibility of rising to 7% due to the ongoing conflict in the Middle East and rising global fuel prices, Central Bank of Sri Lanka (CBSL) Governor Dr Nandalal Weerasinghe said, speaking on Ada Derana 360 on Monday (1).
Source: (the morning) https://www.themorning.lk/articles/Gl9CWhshyjuBUWMhxb0x

Sri Lanka moves to strengthen regulatory framework
Sri Lanka is taking significant steps to establish a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs), as authorities work to align the country’s digital asset sector with international standards and best practices.
Source: (Daily News) https://dailynews.lk/2026/06/03/business/1004515/sri-lanka-moves-to-strengthen-regulatory-framework/

Cabinet approves Rs. 1.47 b “10 Cities Development Program” to boost urban branding and tourism
The Cabinet of Ministers has approved a proposal to accelerate urban modernisation and city-branding initiatives across 10 selected towns under a new Rs. 1.475 billion development program aimed at enhancing their economic and tourism appeal.
Source: (Daily FT) https://www.ft.lk/front-page/Cabinet-approves-Rs-1-47-b-10-Cities-Development-Program-to-boost-urban-branding-and-tourism/44-792794

EXPLAINER – What does the latest IMF review mean for Sri Lankans?
There is a popular phrase used by doctors when a patient is recovering from a major illness: “The patient is stable, but not out of danger.” This is exactly where the Sri Lankan economy stands today.
Source: (economynext) https://economynext.com/explainer-what-does-the-latest-imf-review-mean-for-sri-lankans-274069/

Sri Lanka awards Rs827mn lubricating oil contracts to IOC, Chevron Lubricants
Sri Lanka’s cabinet has approved awarding contracts to buy lubricating oil for the Sapugaskanda power station to Lanka IOC PLC and Chevron Lubricants Lanka PLC, minister Nalinda Jayatissa said.
Source: (economynext) https://economynext.com/sri-lanka-awards-rs827mn-lubricating-oil-contracts-to-ioc-chevron-lubricants-274152/

EU pitches Global Gateway as financing model for Sri Lanka’s port and infrastructure ambitions
The European Union (EU) last week urged Sri Lanka to develop a robust pipeline of investment-ready infrastructure projects and leverage innovative financing mechanisms to attract global capital, positioning its Global Gateway initiative as a high-quality and transparent model for funding strategic developments.
Source: (Daily FT) https://www.ft.lk/front-page/EU-pitches-Global-Gateway-as-financing-model-for-Sri-Lanka-s-port-and-infrastructure-ambitions/44-792796

Rupee devaluation mixed impact to Lanka’s event management -EMA Chief
Rupee devaluation will have both a positive and challenging impact on Sri Lanka’s event management industry increasing affordability for foreign clients, boosting demand, and local revenue.
Source: (Daily News) https://dailynews.lk/2026/06/03/business/1004522/rupee-devaluation-mixed-impact-to-lankas-event-management-ema-chief/

South Korea overtakes India as world’s sixth-largest stock market on AI-fuelled chip rally
South Korea has overtaken India to become the world’s sixth-largest stock market, as a powerful rally in semiconductor stocks tied to the global artificial intelligence (AI) boom lifted the country’s market capitalisation to US$ 5 trillion.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/South-Korea-overtakes-India-as-worlds-sixth-largest-stock-market-on-AI-fuelled-chip-rally/273-341820

Capital market: SEC issues urgent warning on Samagi Capital
The regulator’s warning follows the discovery of a fraudulent certificate currently circulating on social media.
Source: (the morning) https://www.themorning.lk/articles/VgGaXi2hLXuKBXx9iRQi

US Dollar selling rate surpasses Rs 336
The selling rate of the US Dollar has surpassed the Rs 336 mark, according to yesterday’s (2) daily exchange rates issued by the Central Bank of Sri Lanka (CBSL).
Source: (the morning) https://www.themorning.lk/articles/CNkcT5m7PkUFq5yWKzXc

Sri Lanka rupee 332.00/333.50 to US dollar spot, bond yields flat
Sri Lanka’s rupee closed at 332.00/333.50 to the US dollar in the spot market on Tuesday, from 331.50/332.00 the previous day, dealers said, while bond yields closed broadly steady.
Source: (economynext) https://economynext.com/sri-lanka-rupee-332-00-333-50-to-us-dollar-spot-bond-yields-flat-274193/

Financials: Cargills Bank posts Rs 105 m PAT
Cargills Bank’s results for the quarter ended 31 March 2026 reported a profit before tax of Rs 185 million reflecting 42% drop when compared to the corresponding quarter in 2025 mainly due to a significant reduction in total other income, which decreased by Rs 381 million.
Source: (the morning) https://www.themorning.lk/articles/Zb7PU0zgTq2k7Q76P2Rr

Tokyo Cement posts strong FY2025/26 Q4 performance
Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 17,623 million for the 4th Quarter ending 31st March 2026, compared to Rs. 12,960 million recorded in the corresponding quarter of the previous year, reflecting a 36% growth in turnover.
Source: (Daily News) https://dailynews.lk/2026/06/03/business/1004547/tokyo-cement-posts-strong-fy2025-26-q4-performance/

LOLC Finance posts Rs. 27.4 Bn PAT
LOLC Finance PLC, the flagship finance company of the LOLC Group and Sri Lanka’s largest non-bank financial institution, delivered a strong financial performance for the year ended 31 March 2026, supported by robust lending growth, stronger recurring income, improved asset quality and a capital position that remained comfortably above regulatory requirements.
Source: (Daily News) https://dailynews.lk/2026/06/03/business/1004553/lolc-finance-posts-rs-27-4-bn-pat/

Morison eyes export drive as local pharma manufacturing reaches critical mass
Morison Limited, the pharmaceutical manufacturing arm of Hemas Holdings PLC, is aggressively laying the groundwork for a major export drive after reaching a critical mass in the domestic healthcare sector.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Morison-eyes-export-drive-as-local-pharma-manufacturing-reaches-critical-mass/273-341821

Kerner Haus seeks Rs. 420mn via rights for real estate acquisitions
Kerner Haus Global Solutions PLC disclosed it plans to raise up to Rs. 420.1 million through a rights issue as the listed company seeks fresh capital to strengthen its balance sheet, improve liquidity and expand its real estate portfolio.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Kerner-Haus-seeks-Rs-420mn-via-rights-for-real-estate-acquisitions/273-341818

Janashakthi Finance delivers strong 4Q growth
Janashakthi Finance PLC delivered a strong performance for the financial year ended March 31, 2026, reflecting disciplined execution, continued business expansion and sustained momentum across its core lending and deposit businesses.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Janashakthi-Finance-delivers-strong-4Q-growth/273-341814

Prime Lands exits HNB Finance with Rs. 3.5 b sale; Rayynor enters
Prime Lands Ltd., has exited HNB Finance PLC selling 23.29% stake for Rs. 3.5 billion.
Source: (Daily FT) https://www.ft.lk/front-page/Prime-Lands-exits-HNB-Finance-with-Rs-3-5-b-sale-Rayynor-enters/44-792799