SenFin Research – News Updates – 7 September 2026

Inflation rises as trade deficit widens in July
Sri Lanka’s headline inflation accelerated to 8.0 percent in August 2026 from 7.3 percent in July, reflecting increased price pressures in the economy, according to the latest Weekly Economic Indicators released by the Central Bank of Sri Lanka (CBSL). Food inflation rose to 8.5 percent, while non-food inflation stood at 7.7 percent. Core inflation also increased to 5.1 percent from 4.4 percent. Source: (Daily News) https://dailynews.lk/2026/09/07/business/1037450/inflation-rises-as-trade-deficit-widens-in-july/

Crisis fatigue, shifting demand and rising rivals impacting Sri Lanka apparel
Sri Lankan apparel manufacturers have fallen behind regional competitors on automation and technology adoption, not for want of capability but because the industry has spent much of the past decade absorbing one crisis after another, Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence said. Source: (Daily Ft) https://www.ft.lk/front-page/Crisis-fatigue-shifting-demand-and-rising-rivals-impacting-Sri-Lanka-apparel/44-796930

402 garment factories shut in Bangladesh over three years
At least 402 ready-made garment (RMG) factories closed in Bangladesh between July 2023 and June 2026, Bangladeshi Commerce Minister Khandakar Abdul Muktadir told the country’s Parliament, citing overlapping global and domestic shocks that have battered the industry. Source: (Daily Ft) https://www.ft.lk/front-page/402-garment-factories-shut-in-Bangladesh-over-three-years/44-796929

Government securities: Long-dated T-bonds signal confidence
Building on the yield trend observed in July and August, investor sentiment in Sri Lankan government securities has shown continued improvement, despite a volatile geopolitical climate and selective investor positioning across maturities. Source: (the morning) https://www.themorning.lk/articles/kzgeHR3smrp42MLnO150

Related-party guarantee rules for banks eased, reporting requirement tightened
The Central Bank of Sri Lanka (CBSL) has loosened the terms under which licensed banks may rely on corporate guarantees when lending to related parties, while allowing machinery to be pledged as collateral for the first time, under a revised Determination on insider lending. Source: (Daily Ft) https://www.ft.lk/front-page/Related-party-guarantee-rules-for-banks-eased-reporting-requirement-tightened/44-796925