SenFin Research – News Updates – 7 October 2026

Bank lending to real estate tops Rs.2tn as bad loans retreat
The banking sector’s lending to real estate grew 16.9 percent to Rs.2,075.7 billion in the 12 months to end-June 2026, while the nonperforming loans in the segment contracted 13.4 percent, pointing to the improving credit quality in an area where the bad loans still run above the industry average, the latest Central Bank data showed. Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Bank-lending-to-real-estate-tops-Rs-2tn-as-bad-loans-retreat/273-351859

Sri Lanka condominium sales drop 6.7-pct in 2026 2Q: CB
Sri Lanka’s condominium sales decreased by 6.7 percent during the second quarter of 2026, from a year ago, according to a condominium market survey conducted by the central bank. Source: (economynext) https://economynext.com/sri-lanka-condominium-sales-drop-6-7-pct-in-2026-2q-cb-285687/

Budget 2027 takes priority as Sri Lanka nears next IMF tranche
Sri Lanka yesterday reached a staff-level agreement with the International Monetary Fund (IMF) on the seventh review of its bailout programme, moving closer to a further US $ 345 million disbursement. Source: (Daily Mirror) https://www.dailymirror.lk/business-main/Budget-2027-takes-priority-as-Sri-Lanka-nears-next-IMF-tranche/245-351870

IMF says monetary policy must be ready to tighten if war fuels inflation
The International Monetary Fund (IMF) yesterday stressed that monetary policy should be ready to tighten if the Middle East war generates stronger inflation pressures across the economy. Source: (Daily Mirror) https://www.dailymirror.lk/business-news/IMF-says-monetary-policy-must-be-ready-to-tighten-if-war-fuels-inflation/273-351869

IMF urges fuel price adjustments, targeted relief as war risks persist
Sri Lanka should allow the domestic fuel prices to reflect the international price movements if the Middle East war persists, while protecting the vulnerable households through the targeted cash assistance, the International Monetary Fund (IMF) said. Source: (Daily Mirror) https://www.dailymirror.lk/business-news/IMF-urges-fuel-price-adjustments-targeted-relief-as-war-risks-persist/273-351867

Two in five Sri Lankans poor or vulnerable despite economic recovery: World Bank
Although Sri Lanka’s economy has returned to its 2018 size and regained its upper-middle-income status, two in five people remain poor or vulnerable to falling into poverty, the World Bank said in its latest Development Update. Source: (economynext) https://economynext.com/two-in-five-sri-lankans-poor-or-vulnerable-despite-economic-recovery-world-bank-285764/

Only 8-pct of Cyclone Ditwah rebuilding funds spent as Sri Lanka logs rare surplus: WB
Sri Lanka ran a rare budget surplus in the first half of 2026 as strong tax collections coincided with sharp delays in state spending, including emergency rebuilding funds, the World Bank said in its latest Sri Lanka Development Update October 2026, titled “From Recovery to Transformation”. Source: (economynext) https://economynext.com/only-8-pct-of-cyclone-ditwah-rebuilding-funds-spent-as-sri-lanka-logs-rare-surplus-wb-285757/

World Bank says Sri Lanka output back to 2018 levels, warns recovery incomplete
Sri Lanka’s economy has reached pre-crisis levels, with real gross domestic product (GDP) projected to grow by 4.4 percent this year, exceeding earlier forecasts, but the recovery remains uneven and incomplete, the World Bank has said. Source: (economynext) https://economynext.com/world-bank-says-sri-lanka-output-back-to-2018-levels-warns-recovery-incomplete-285745/

World Bank Lifts India GDP View, Says Asia’s Buffers Too Thin
The World Bank on Tuesday raised its growth forecast for India, saying strength in industry and services will help the economy weather a weaker monsoon and elevated energy prices. Source: (Bloomberg) https://www.bloomberg.com/news/articles/2026-10-06/asia-s-buffers-too-thin-to-keep-absorbing-oil-shock-world-bank

CPC sees fuel prices holding through Oct., steps up precautionary imports
The Ceylon Petroleum Corporation (CPC) yesterday said current fuel prices can be maintained until the end of October and assured that the country has adequate stocks, while moving to secure additional shipments as a precautionary measure. Source: (Daily Ft) https://www.ft.lk/front-page/CPC-sees-fuel-prices-holding-through-Oct-steps-up-precautionary-imports/44-798342

Sri Lanka, Thailand to renew 30-day tourist visa exemption
Sri Lanka and Thailand have agreed to enter into a mutual visa exemption agreement for ordinary passport holders, minister Nalinda Jayatissa said. Source: (economynext) https://economynext.com/sri-lanka-thailand-to-renew-30-day-tourist-visa-exemption-285775/

Cabinet clears contracts worth over Rs. 4.06 b for five road improvement projects
The Cabinet of Ministers has approved awarding of contracts for five road infrastructure improvement projects worth over Rs. 4.06 billion. Source: (Daily Ft) https://www.ft.lk/front-page/Cabinet-clears-contracts-worth-over-Rs-4-06-b-for-five-road-improvement-projects/44-798340

Tea’s rupee gains outpace dollar performance
The national tea sale average rose in September, with the low-grown teas posting the largest monthly gain, although the prices in US dollar terms remained below the year-earlier levels across all elevations. Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Teas-rupee-gains-outpace-dollar-performance/273-351861

Solar power industry warns new policy could threaten energy security
Sri Lanka’s solar power industry is warning that a new policy could undermine energy security, increase costs for consumers and businesses, and weaken the country’s ability to reduce dependence on imported fossil fuels. Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Solar-power-industry-warns-new-policy-could-threaten-energy-security/273-351847

Colombo port container volumes up 10% in eight months on transshipment growth
Container volumes at the Port of Colombo rose 10.3% year-on-year (YoY) to 5.99 million twenty-foot equivalent units (TEUs) in the first eight months of 2026, driven by transshipment, Central Bank data showed, although domestic container traffic contracted sharply in August. Source: (Daily Ft) https://www.ft.lk/business/Colombo-port-container-volumes-up-10-in-eight-months-on-transshipment-growth/34-798288

Sri Lanka rupee closes at 330.85/95 to US dollar spot, bond yields up
Sri Lanka’s rupee closed at 330.85/95 to the US dollar in the spot market on Tuesday, weaker from 330.60/70 the previous day, while bond yields closed higher, dealers said. Source: (economynext) https://economynext.com/sri-lanka-rupee-closes-at-330-85-95-to-us-dollar-spot-bond-yields-up-285821/

Sri Lanka stocks recover to close flat
Sri Lanka’s Colombo Stock Exchange closed flat on Tuesday, CSE data showed, with the benchmark All Share Price Index moving up a marginal 0.03 percent. Source: (economynext) https://economynext.com/sri-lanka-stocks-recover-to-close-flat-285805/

Govt. eases capital outflow curbs, keeps Bond plans under wraps
The Government yesterday defended its gradual opening of the capital account and refused to disclose its plans for Sri Lanka’s international Bonds, arguing that any such signal would be market-sensitive. Source: (Daily Ft) https://www.ft.lk/front-page/Govt-eases-capital-outflow-curbs-keeps-Bond-plans-under-wraps/44-798338

Fitch rates MBSL’s proposed subordinated debt ‘BBB+(EXP)
Fitch Ratings has assigned Merchant Bank of Sri Lanka & Finance PLC’s (MBSL, A(lka)/Stable) proposed Sri Lankan rupee-denominated subordinated listed debentures of up to Rs. 1 billion, an expected National Long-Term Rating of ‘BBB+(EXP)(lka)’. Source: (Daily Ft) https://www.ft.lk/financial-services/Fitch-rates-MBSL-s-proposed-subordinated-debt-BBB-EXP/42-798321

Pan Asia Bank debenture issue oversubscribed at Rs. 5.2 b
Pan Asia Banking Corporation PLC yesterday said its debenture issue drew applications worth Rs. 5.17 billion, exceeding the maximum Rs. 5 billion on offer, final figures showed. Source: (Daily Ft) https://www.ft.lk/financial-services/Pan-Asia-Bank-debenture-issue-oversubscribed-at-Rs-5-2-b/42-798314