Sri Lanka key revenue agencies to exceed tax targets by Rs400bn: Minister

Wednesday December 17, 2025 5:55 pm

ECONOMYNEXT – Sri Lanka’s key revenue agencies is on track to exceed targets in 2025 and the budget deficit would be below the original target despite cyclone relief, Deputy Minister of Economic Development Nishantha Jayaweera said.

The Inland Revenue Department is likely to exceed its target of 2,195 billion rupees by around 50 billion, Jayaweera told reporters Wednesday.

The Department of Customs had already exceeded its 2,115 billion rupee target by 280 billion rupees and is likely to exceed the target by 280 billion rupees

The Department of Excise is on track to exceed target of 228 billion rupees by around 4 billion.

Sri Lanka’s Cyclone Ditwah likely to reduce some excise revenues and value added tax, but overall targets would still be exceeded, he said.

The 2025 cyclone spend of 72 billion rupees to be managed within existing limits. (Colombo/Dec17/2025)

Wednesday December 17, 2025 6:05 pm

ECONOMYNEXT – Sri Lanka will host an international donor conference in January 2026 to raise funds for rebuilding and reconstruction from the recent Ditwah devastation, Deputy Finance Minister Anil Jayantha Fernando said.

Sri Lanka has estimated the rebuilding cost to be up to USD 7 billion, though accurate estimate is yet to be determined.

“Under the last Rebuilding Sri Lanka Fund meeting, we decided to hold a donot conference in January,” Minister Fernando told reporters at a media briefing on Wednesday.

He said the international conference will be held in Sri Lanka and more details will be given later.

Analysts say Sri Lanka is unable to afford the rebuilding without the support of international donors given it is still recovering from the 2022 unprecedented economic crisis.

The country is under an IMF loan and also has requested for a USD 200 million Rapid Finance Instrument after the disaster. (Colombo/December 17/2025)

Wednesday December 17, 2025 5:30 pm

ECONOMYNEXT – Sri Lanka’s Capital Alliance PLC (CAL) has been upgraded to A+ with a Stable Outlook by Lanka Rating Agency, based on its profitability, capital adequacy, and prudent risk management practices.

“LRA also noted the company’s consistent earnings performance, effective liquidity management, and measured approach to balance-sheet growth,” the company said.

The rating upgrade recognises CAL’s sustained profitability, robust capital adequacy maintained well above regulatory requirements, and its leading position in Sri Lanka’s government securities market.

LRA also noted the company’s consistent earnings performance, effective liquidity management, and measured approach to balance-sheet growth.

CAL’s treasury operations continue to play a role in the domestic debt market.

Commenting on the upgrade, CAL PLC CEO Sanura Silva said the A+ rating underscores its commitment to operating with discipline across market cycles, while maintaining the resilience required to support clients, counterparties, and the broader financial system.

“Capital Alliance PLC remains focused on delivering stability, liquidity, and long-term value, reinforcing its position as a trusted participant in Sri Lanka’s capital markets.” (Colombo/Dec17/2025)

Wednesday December 17, 2025 5:21 pm

ECONOMYNEXT – Diversified financials and capital goods shares pushed the Colombo Stock Exchange (CSE) to close 0.02 percent lower, data on its site showed.

Market experienced a heavy amount of volatility in trade ultimately dragging down both the indices.

The broader All Share Price Index ended 3.56 points weaker at 22,329.69. Meanwhile the more liquid S&P SL20 index marginally declined 0.01 percent, or 0.79 points to 6,070.33.

Commercial Bank (down 1.50 rupees at 198.50 rupees), DFCC Bank (down 2 rupees at 146 rupees), Richard Pieris and Company (down 70 cents at 40.30 rupees), Bukit Darah (down 22 rupees at 1,012.00rupees), and John Keells Holdings (down 10 cents at 21.00 rupees) dragged the ASPI down.

Capital Alliance Holdings, Prime Land residencies and Renuka Holdings recorded crossings on Wednesday.

Market turnover rose from 2.8 billion rupees to 3.3 billion rupees, while the share volume was 157,311,130.

Industrial Asphalts (Ceylon) was the top loser despite positive investor interest in construction related shares following Cyclone Ditwah’s destruction.

Tokyo Cement (up 2 rupees at 108.25 rupees), Swisstek (Ceylon) (up 70 cents to 96.80 rupees) and Chevron Lubricants Lanka (up 1 rupees to 180.50 rupees) ended the day higher.

There was a net foreign outflow of 130.44 million rupees.

Sri Lanka’s LOLC Finance is listing 15 billion rupees of 11.5 and 10.95 percent debentures, it said in a stock exchange filing.

Meanwhile, the Securities and Exchange Commission of Sri Lanka (SEC) has warned the public to beware of Bule Ocean Securities Limited and Gladius South Asia scamming people interested in investing the share market.

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In Asia, some equity markets slid as investor sentiment weighed down the markets.

Japan’s Nikkei 225 index ended higher despite “directionless trading amid growing uncertainty over the U.S. economy and future interest rate cuts by the Federal Reserve, after key jobs data showed mixed results,” Japan’s Mainichi newspaper said.

The index closed 0.26 percent higher at 49,512.28.

Meanwhile, Pakistan’s Karachi Stock Exchange 100 index climbed 0.01 percent to 170,465.91 on Wednesday.

Hong Kong’s Hang Seng index ended 0.96 percent higher at 25,468.78.

India’s Nifty 50 was trading 0.16 percent lower at 25,818.55 while country’s Sensex index was 0.14 percent weaker at 884,559.65.

As at 4.00 p.m Sri Lankan time, spot gold was trading at 4,324.65 US dollars, up 0.50 percent. (Colombo/Dec17/2025)

Wednesday December 17, 2025 5:11 pm

ECONOMYNEXT – Sri Lanka’s rupee depreciated further, closing at 309.65/72 to the US dollar in the spot market Wednesday, from 309.50/60 the previous day, dealers said, while bond yields closed down.

A bond maturing on 15.12.2026 closed at 8.25/38 percent, down from 8.35/45 percent.

A bond maturing on 15.09.2027 closed at 8.78/88 percent, down from 8.80/90 percent.

A bond maturing on 15.12.2029 closed at 9.45/48 percent.

A bond maturing on 01.10.2032 closed at 10.20/25 percent, down from 10.22/25 percent.

A bond maturing on 01.11.2033 closed at 10.40/44 percent, down from 10.37/42 percent. (Colombo/Dec17/2025)

Wednesday December 17, 2025 3:42 pm

ECONOMYNEXT – Sri Lanka has sold 40.62 billion rupees of Treasury bills at an auction, data from the Ministry of Finance’s Public Debt Management Office showed.

The 3-month yield was unchanged at 7.51 percent, with 10 billion rupees of bills offered at the auction on Wednesday, and 13.28 billion sold.

The 6-month yield was unchanged at 7.91 percent, with 25 billion rupees offered and 17.37 billion sold.

The 12-month yield was unchanged at 8.03 percent, with 13 billion rupees offered and 9.96 billion sold.

A total of 80,189 million bids were received. (Colombo/Dec17/2025)

Wednesday December 17, 2025 12:01 pm

ECONOMYNEXT – Sri Lanka’s Securities and Exchange Commission (SEC) has warned the general public of ongoing scams attempting to swindle money from potential investors in share market.

The market regulator has already identified Bule Ocean Securities Limited and Gladius South Asia involved in scams.

Tushara Jayaratne, the deputy director general of the SEC said the Blue Ocean has been involved in asking investors to start trading through an app named BOMate.

“From this app, you can’t trade shares. But the money transaction goes through this app and the SEC system does not see these transactions. So the money is going somewhere else,” he told reporters in a media briefing on Tuesday.

He said the SEC has already made complaints to both Criminal Investigation Department (CID) of police and Financial Intelligence Unit (FIU) at the Central Bank.

Jayaratne said the second company Gladius South Asia has been involved in asking investors not to invest their money in local stock market, but in foreign countries.

“It also has said the company has licence from SEC. But no such licence given,” he said.

Jayaratne, however, said Sri Lanka market is not full of scam and people can have confidence in the market.

“Our market is somewhat free and fair. From the perspective of investors, you also have a responsibility to be careful when investing in the market.” (Colombo/December 17/2025)