SenFin Research – News Updates – 5 October 2026

Equities: CSE foreign selling slows, YTD outflow doubles
Though net foreign outflows from the Colombo Stock Exchange significantly slowed in September, down from Rs 19.5 billion in August to Rs 1.55 billion, total net foreign outflows for the first eight months of 2026 more than doubled year-on-year to Rs 55.7 billion, according to CT Smith Securities data and SenFin Securities' September equities report.
Source: (the morning) https://www.themorning.lk/articles/SwEhOFWPflyywCq9ufJJ

Budget back in surplus in August after two months in red
The Government’s Budget returned to surplus in August, posting a cumulative surplus of Rs. 35.4 billion for the first eight months of 2026, after deficits in June and July had pushed the balance into the red, the Finance Ministry’s latest Fiscal Review Report showed.
Source: (Daily Ft) https://www.ft.lk/top-story/Budget-back-in-surplus-in-August-after-two-months-in-red/26-798226

January-August 2026: Fuel bill soars 62% to $4.07b
Sri Lanka’s fuel import bill has surged by 61.6% to $4.07 billion in the first eight months of this year, increasing the country’s import expenditure on fuel by $1.55 billion compared to the same period last year, according to Central Bank of Sri Lanka (CBSL) data.
Source: (the morning) https://www.themorning.lk/articles/SfdfUVKlQ88xm977zu19

CBSL dollar buying slows to $ 64 m in September as rupee slips
The Central Bank of Sri Lanka (CBSL) was a net buyer of $ 64.2 million from the domestic foreign exchange market in September, down 89% from the record $ 579 million it bought in August, as the rupee weakened against the US dollar after two months of recovery, CBSL data released last Friday showed.
Source: (Daily Ft) https://www.ft.lk/front-page/CBSL-dollar-buying-slows-to-64-m-in-September-as-rupee-slips/44-798223

Government revenue: IRD tax rev exceeds Rs 2,040 b in Q3 2026
Total tax revenue collected by the Inland Revenue Department (IRD) reached Rs 2,040 billion by the end of the third quarter of 2026. According to an official media release issued on Friday (2), total collections as of 30 September 2026, reflect a 24% increase compared to the corresponding period in 2025. During the first nine months of 2025, the department collected Rs 1,642 billion in tax revenue.
Source: (the morning) https://www.themorning.lk/articles/V9Q2iDtcAh5zS3ZU1qFm

Macroeconomic policy: SL to maintain 5% inflation target till Oct ‘29
The Central Bank of Sri Lanka is mandated to maintain the quarterly headline inflation rate at 5%, at an accountability margin of ±2 percentage points till October of 2029, under the new Monetary Policy Framework Agreement (MPFA), signed by the Government of Sri Lanka, and the CBSL.
Source: (the morning) https://www.themorning.lk/articles/FzbeBnkNR5WTJfSwzEnu

Labour: Unemployment rises to 4% in Q2 2026
Sri Lanka’s unemployment rate increased to 4% in the second quarter of 2026, representing an increase of 0.2% compared to the corresponding quarter of last year and a rise of 0.3% from the first quarter of 2026, data from the Department of Census and Statistics shows.
Source: (the morning) https://www.themorning.lk/articles/fVO1SkgFpM9N6m738Nuk

Banks build foreign buffer as private sector keeps cutting offshore debt
Sri Lanka’s banks have built up their foreign currency holdings abroad while cutting what they owe overseas, and private companies have continued to repay more foreign debt than they take on, the Central Bank of Sri Lanka’s (CBSL) External Sector Bulletin for August 2026 showed.
Source: (Daily Ft) https://www.ft.lk/front-page/Banks-build-foreign-buffer-as-private-sector-keeps-cutting-offshore-debt/44-798225

Foreigners back Treasuries, exit CSE as rupee slips 6.3% by end-Aug.
Foreign investors added to their holdings of Government securities in August while continuing to pull money out of the Colombo Stock Exchange (CSE), the Central Bank of Sri Lanka’s (CBSL) External Sector Bulletin for August 2026 showed. Over the same period, the rupee’s depreciation against the US dollar reached 6.3% for the year by end-September.
Source: (Daily Ft) https://www.ft.lk/front-page/Foreigners-back-Treasuries-exit-CSE-as-rupee-slips-6-3-by-end-Aug/44-798222

Lanka Walltiles plans Rs. 5 b Rights Issue to trim debt, to absorb plantation management arm
Lanka Walltiles PLC (LWL) said it is planning to raise Rs. 5 billion through a Rights Issue to partially settle its bank borrowings and overdue intercompany payables, and will amalgamate its wholly owned subsidiary Vallibel Plantation Management Ltd., with itself once the issue is completed.
Source: (Daily Ft) https://www.ft.lk/front-page/Lanka-Walltiles-plans-Rs-5-b-Rights-Issue-to-trim-debt-to-absorb-plantation-management-arm/44-798219

Galle Face Capital plans Rs. 2 b one-for-one Rights Issue to cut short-term debt
Galle Face Capital Partners PLC plans to raise Rs. 1.96 billion through a Rights Issue to settle short-term bank and intercompany borrowings and finance future investments, the company said on Friday.
Source: (Daily Ft) https://www.ft.lk/front-page/Galle-Face-Capital-plans-Rs-2-b-one-for-one-Rights-Issue-to-cut-short-term-debt/44-798218