Sri Lanka construction increased in December 2025, despite weather: PMI

Saturday January 31, 2026 12:00 pm

ECONOMYNEXT – Sri Lanka’s construction sector increased in December, registering a value of 67.1, up from the previous month’s 66.2, on a Purchasing Managers Index compiled by the central bank.

A majority of firms reported a notable expansion in construction activities during the reference period, despite initial operational disturbances caused by adverse weather
conditions, the central bank said.

The New Orders sub index expanded, registering 67.6 in December from 64.7 in November.

“Many firms reported an increase in available projects this month, driven by a rise in both government-funded infrastructure projects and new private-sector developments,” the central bank said.

The Employment sub index remained at a neutral level, registering 50.0 in December down from 57.4 in November.

This reflected stable employment conditions during the month, CBSL said.

The Quantity of Purchases sub index expanded, registering 54.2 in December, from 58.8 in November.

The Suppliers’ Delivery Time lengthened during the month, recording 56.9.

“Ongoing post-cyclone reconstruction efforts are expected to provide further momentum to the construction activities.” (Colombo/Jan1/2026)

Saturday January 31, 2026 3:00 pm

ECONOMYNEXT – Sri Lanka has sold 6,000 million rupees of bonds offered on tap at an average rate set at an auction this week, bringing the total of bonds sold in the week to 185.062 billion, data from the Ministry of Finance – Public Debt Management Office showed.

The debt office sold a 01 March 2030 maturity bond (LKB00530C017) at a weighted average yield rate of 9.72 percent.

On Thursday, 179.062 billion rupees in 2030, 2034, and 2037 bonds were sold of an offered 205 billion.

Read more
Sri Lanka sells Rs179.06bn in 2030, 2034, and 2037 bonds

Total market subscription was 10,000 million rupees.

Settlement date is February 2. (Colombo/Jan31/2026)

Saturday January 31, 2026 7:00 am

ECONOMYNEXT – Sri Lanka’s Colombo Consumer Price Index based headline inflation, year-on-year, accelerated in January 2026 after remaining at the same level for three consecutive months, the central bank said.

“Headline inflation (Y-o-Y) was recorded at 2.3% in January 2026 compared to 2.1% in December 2025, broadly in line with the Central Bank’s near-term projections,” CBSL said.

The widely-watched Colombo Consumer Price Index rose 0.6 percent in January to 197.0 points from 195.8 points the previous month.

Year-on-year food inflation accelerated to 3.3 percent in January from 3.0 percent in December.

Non-food inflation stayed unchanged at 1.8 percent in January.

“On a month-on-month basis, the CCPI recorded an increase of 0.59% in January 2026. The Food category contributed 0.21 percentage points to this increase, while the Non-Food category contributed 0.39 percentage points.”

Core inflation decelerated to 2.3 percent in January 2026 from 2.7 percent in December 2025. (Colombo/Jan31/2025)

Friday January 30, 2026 5:30 pm

ECONOMYNEXT – Sri Lankans should be extra vigilant on investments in crop cultivations with higher returns as many people had ended up in such unregulated investment to find out they are also similar to illegal pyramid schemes, Central Bank Governor Nandalal Weerasinghe said.

In recent years, Sri Lanka has witnessed a surge in unregulated investment schemes targeting agricultural lands, often luring investors with promises of land ownership and assured monthly incomes in signed agreements.

These ventures typically market themselves as opportunities to invest in commercial farming or eco-friendly projects, offering returns that appear attractive amidst the country’s economic challenges, analysts say.

However, many of these schemes operate without proper regulatory oversight, raising concerns about their legitimacy and the protection of investors’ rights.

“They (investment agents) claim that by cultivating various crops, they can give (higher) return,” he said,

“For example, they say that by growing ni-miris (scotch bonnet pepper), you can earn a monthly interest of 30% or 40%. That means you can earn more than 120% annually. Therefore, people should realize that if such a profit can be made from an investment, they could do it themselves.”

“There is no need to give your money to someone else to do it. However, we all know that this is practically impossible to achieve.”

Weerasinghe said the Central Bank has observed an increasing trend of the public being lured toward fraudulent investment schemes in plantations and agriculture sectors.

“The first thing to remember is that plantation investments are unregulated. If you lose your money, there is no regulatory authority to handle your complaint. This is an entirely unregulated sector,” Weerasinghe warned.

He said people are being promised of deeds for the cultivation they have invested after signing contracts, citing to protect individual investments.

Currently 18 individuals or organizations are being investigated related such investments which are considered as illegal deposits, he said. (Colombo/January 30/2026)

Friday January 30, 2026 4:46 pm

ECONOMYNEXT – Sri Lanka’s rupee closed weaker at 309.25/35 to the US dollar in the spot market Friday, after opening at 309.10/20, having depreciated in recent weeks, while bond yields closed broadly steady, dealers said.

A bond maturing on 15.03.2028 closed at 8.95/9.05 percent.

A bond maturing on 15.09.2029 closed at 9.55/62 percent.

A bond maturing on 01.03.2030 closed flat at 9.68/72 percent.

A bond maturing on 15.03.2031 closed at 9.90/10.00 percent.

A bond maturing on 01.10.2032 closed at 10.27/30 percent.

A bond maturing on 15.06.2035 closed at 10.90/93 percent. (Colombo/Jan30/2026)

Friday January 30, 2026 3:53 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday with Colombo Dockyard contributing the most to the market turnover.

The All Share Price Index dropped 0.22 percent, or 14.51 points, at 23,812.31.

S&P SL20 saw a drop of 0.13 percent, or 8.83 points, at 6,641.15.

Top positive contributors to the ASPI were Colombo Dockyard (Rs 155), Ceylon Tobacco Company (Rs 1,729.75).

Hayleys (Rs 240.75), and Richard Pieris and Company (Rs.38.10) led the negative ASPI contributions.

The market turnover was 9.19 billion rupees. A significant proportion of this was from Capital Goods (4.1 billion rupees) and Banks (2.54 billion rupees).

Colombo Dockyard was up 5.98 percent, closing at Rs.155. The company recently had a 41.73 percent stake acquired by Mazagon Dock Shipbuilders Limited.

DFCC Bank said they were granted in principle approval by the Colombo Stock Exchange to list 10 billion rupees of 11.50, 11.75 and 12 percent debentures. The stock closed down 1.25 rupees at 157.

Maharaja Foods PLC announced that the proposed rights issue of shares dated January 9 was unanimously approved by shareholders at the Extraordinary General Meeting held today. The stock closed up 10 cents at 13.40 rupees. (Colombo/Jan30/2026)

Friday January 30, 2026 12:49 pm

ECONOMYNEXT – Sri Lanka’s DFCC Bank has received Colombo Stock Exchange approval to list 10 billion rupees of 11.50, 11.75 and 12 percent debentures, it said in a stock exchange filing.

DFCC Bank will issue 100 million Basel III compliant, subordinated, listed, rated, unsecured, redeemable GSS+ bonds, with a non-viability conversion option, at 100 rupees each.

The subscription list opens on February 6, and the issue is managed by Capital Alliance Partners Limited and NDB Investment Bank Limited.

The issue was rated ‘BBB+(EXP)(lka)’ by Fitch Ratings. (Colombo/Jan30/2026)