Sri Lanka services activities expand in Jan 2026: PMI

Monday February 16, 2026 5:30 pm

ECONOMYNEXT – Sri Lanka’s services sector activities expanded at a slower rate in January 2026, with a Purchasing Managers Index compiled by the central bank registering an index value of 64.5, compared to 67.9 the previous month.

The expansion in Business Activities was driven by the improvements observed across most of the sectors, CBSL said.

“The growth was driven by strong performance in wholesale and retail trade, and accommodation, food and beverage service activities.”

Business activities related to financial services also continued to improve, underpinned by increased lending activity.

“New Businesses increased in January 2026, underpinned by increased demand for financial services, as well as improved activity in education, and transportation of goods and passengers, including warehousing.”

Employment rose in January 2026, reflecting workforce expansion by firms to meet increased demand.

Backlogs of Work declined on a month-on-month basis, following the increase recorded in the previous month. (Colombo/Feb16/2026)

Monday February 16, 2026 6:09 pm

ECONOMYNEXT – Top officials from Sri Lanka and Pakistan discussed over importance of working collaboratively against international drug networks, the island nation’s Ministry of Public Security said in a statement.

The aim of the meeting was to strengthening regional cooperation to prevent the entry of narcotics into the country

The discussion was between the Minister of Public Security Ananda Wijepala and a Pakistani delegation including the Minister for Interior and Narcotics Control, Syed Mohsin Raza Naqvi, Minister for Overseas Pakistanis and Human Resource Development, Chaudhry Salik Hussain and the High Commissioner of Pakistan to Sri Lanka, General Faheem Ul Aziz.

“Both parties emphasized the importance of working collaboratively against international drug networks, and the Pakistani side commended the program implemented by the Sri Lankan Government to eradicate the drug menace,” Sri Lanka’s Ministry of Public Security said.

Sri Lanka has intensified its efforts to combat the drug menace through a combination of large-scale law enforcement operations and strengthened regional diplomacy.

Under the current administration, the Ministry of Public Security has focused on paralyzing the supply chains that bring narcotics into the country, particularly from international waters.

High-profile raids and arrests are conducted to target both street-level dealers and high-level traffickers, while the government is also focusing on rehabilitating drug users and launching public awareness campaigns to reduce demand.

The challenge for Sri Lanka is exacerbated by its geographical location, which places it near major trafficking routes.

Intelligence reports and diplomatic discussions indicate that drug networks in neighboring countries to smuggle narcotics into Sri Lanka.

By working with both India and Pakistan, Sri Lanka aims to create a triple-lock system that monitors land, air, and sea routes to prevent the island from remaining a vulnerable endpoint for these international drug syndicates, government officials say. (Colombo/February 16/2026)

Monday February 16, 2026 5:09 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 309.20/25 to the US dollar in the spot market Monday, stronger from 309.18/23 the previous day, dealers said, while bond yields closed broadly steady with marginal increases on selected tenors.

A bond maturing on 15.12.2026 closed at 8.20/30 percent, up from 8.10/20 percent.

A bond maturing on 15.09.2027 closed at 8.45/55 percent, up from 8.45/52 percent.

A bond maturing on 15.03.2028 closed at 8.93/98 percent, up from 8.90/95 percent.

A bond maturing on 01.07.2028 closed at 9.03/05 percent.

A bond maturing on 15.12.2029 closed at 9.45/50 percent, up from 9.42/45 percent.

A bond maturing on 01.03.2030 closed at 9.48/52 percent, down from 9.50/52 percent.

A bond maturing on 15.03.2031 closed at 9.65/75 percent, up from 9.65/70 percent.

A bond maturing on 01.10.2032 closed at 10.10/13 percent, up from 10.05/10 percent.

A bond maturing on 01.06.2033 closed at 10.35/42 percent, down from 10.35/40 percent.

A bond maturing on 15.06.2035 closed at 10.65/72 percent, up from 10.65/70 percent.

A bond maturing on 01.07.2037 closed at 10.80/90 percent. (Colombo/Feb16/2026)

Monday February 16, 2026 4:34 pm

ECONOMYNEXT – Sri Lanka’s manufacturing sector expanded at a slower rate in January, registering a value of 56.1 on the Purchasing Managers Index compiled by the central bank, compared to a seasonal peak in the previous month.

All the sub-indices remained above the neutral threshold during the month, CBSL said.

“Stock of Purchases registered a month-on-month increase, mainly due to inventory buildup ahead of the Chinese New Year holidays.”

The New Orders, Production, and Employment remained expanded in January.

The Employment and Stock of Purchases sub-indices also increased.

The Suppliers’ Delivery Time remained lengthened in the month. (Colombo/Feb16/2026)

Monday February 16, 2026 4:23 pm

ECONOMYNEXT – A parliamentary committee has approved Sri Lanka’s Microfinance and Credit Regulatory Authority Bill. which seeks to regulate money lending.

The bill was drafted with the aim of establishing the Sri Lanka Microfinance and Credit Regulatory Authority, regulating the money lending business and microfinance business, protecting customers engaged in such businesses, and repealing the Microfinance Act, No. 6 of 2016.

The original draft of this Bill, which had been presented in 2024, was challenged before the Supreme Court.

“The authority to be established under this bill will issue licenses to and regulate persons engaged in money lending and microfinance businesses,” a parliament statement said.

“No person may conduct a money lending business without a license issued by the Authority.”

As the authority will be vested with statutory powers to determine maximum interest rates in both the lending and deposit sectors, COPF advised officials “to exercise such powers in a manner that preserves the nature of the various financial instruments used by microfinance institutions for savings and lending activities”. (Colombo/Feb16/2026)

Monday February 16, 2026 3:21 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed high on Monday with banking shares pushing the indices.

The All Share Price Index was up 0.80 percent, or 190.27 points at 23,900.11.

The S&P SL20 was up 1.47 percent, or 97.18 points at 6,715.91.

Hatton National Bank (Rs.453.00), Sampath Bank (Rs.160.00), and Commercial Bank of Ceylon (Rs.234.25) were the contributors to ASPI.

“There’s sizable interest in banking shares,” Dimantha Matthew, Chief Research and Strategy Officer at First Capital Holdings PLC, said.

“There’s some speculation regarding splits around larger valued shares, and dividend announcements. This is pushing banking shares, which are index heavy, to drive up the market.”

Market turnover was 5.6 billion rupees, with banking stocks contributing 1.68 billion rupees of this.

Lankam Ceylon disclosed that it had “granted 2 Corporate Guarantees for the value of Rs 50,000,000 each on behalf of its subsidiary, SunAgro LifeScience Limited (SALS), as security for short term loan facilities.”

WindForce PLC announced that it has been awarded 12 standalone Battery Energy Storage System (BESS) projects in Sri Lanka. The total investment for this venture, under a 15 year contract is valued at LKR 20.79 billion, with the facilities providing a combined capacity of 120MW/480MWh. (Colombo/February16/2026)

Monday February 16, 2026 1:33 pm

ECONOMYNEXT – Sri Lanka energy firm WindForce PLC said it has been awarded 12 standalone battery energy storage system (BESS) projects.

The total investment value for these 12 projects amounts to 20.79 billion rupees and project financing is expected to follow an 80:20 Debt-to-Equity structure.

“The 12 projects collectively amount to a total installed capacity of 120 MW/480MWh and will be developed as standalone BESS facilities under the Build, Own and Operate (BOO) model, operating over a 15‑year contract period,” the company said in a stock exchange filing.

Of the 12 projects, 11 will be fully owned and developed by WindForce, while the Vavunathivu project will be developed through a consortium between WindForce and Vidullanka.

Related – Sri Lanka BESS EOI gets competitive bids with Chinese batteries
Sri Lanka CEB tenders for BESS for grid augmentation with ADB funds

These projects form part of Sri Lanka’s first-ever grid‑scale standalone BESS initiative, launched by the Ceylon Electricity Board (CEB) to enhance national grid stability and support greater renewable energy integration. (Colombo/Feb16/2026)