Sri Lanka stocks trend down in midday trade

Tuesday February 17, 2026 12:03 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trading down after opening close to the 24,000 mark, CSE data showed.

The All Share Price Index was down 0.04 percent, or 10.35 points at 23,889.76.

The S&P SL20 was down 0.04 percent, or 2.81 points at 6,713.14.

Turnover was 1.4 billion rupees.

The top contributor to the ASPI was Lanka Milk Foods (Rs.87.20).

Pan Asia Banking Corporation (Rs.59.90) was the top negative contributor.

Pan Asia Banking Corporation PLC released its financial quarterly report for December 2025, reporting a profit of 981 million rupees, down 49 percent from December 2024.

The bank also approved a first and final cash dividend of Rs. 1 per share.

Lakehouse Printers and Publishers reported a 121.9 percent loss of 842 million, compared to the 3.8 million profit made in December 2024. (Colombo/Feb17/2026)

Tuesday February 17, 2026 1:33 pm

ECONOMYNEXT – In a move that highlights the shifting dynamics of global trade, Sri Lanka and Japan signed a landmark Economic Cooperation Agreement with an aim to improve the trade between the two nations, the island nation’s government said.

The Sri Lanka-Japan Intergovernmental Economic Policy Dialogue, held at the Ministry of Finance, culminated in a Memorandum of Cooperation (MoC) aimed at formalizing a strategic economic roadmap between the two nations.

The agreement, signed by high-level representatives from both governments, introduces a road map for an industrial economic corridor and a comprehensive review of Sri Lanka’s export capacity.

A dedicated working group will be established to operationalize this corridor, signaling a move toward deep, institutionalized bilateral ties.

On behalf of Sri Lanka, the agreement was signed by Trade Ministry Secretary K. A. Vimalenthirarajah and Foreign Ministry’s Acting Additional Secretary Dharshana M. Perera, while Matsuo Takehiko, Japanese Vice Minister for International Affairs at the Ministry of Economy, Trade and Industry (METI) and Murotani Masakatsu, Director of the Southwest Asia Division at the Ministry of Foreign Affairs signed on behalf of Japan,.

This strengthening of Asian partnerships comes at a time when the America First policies and universal tariff regimes of the second Trump administration are fundamentally altering international trade.

As Washington pivots toward isolationism and weaponizes market access, nations like Sri Lanka and Japan are increasingly seeking “strategic autonomy” through regional clusters.

By reinforcing their long-standing friendship and focusing on Foreign Direct Investment (FDI), both nations are building a hedge against the unpredictability of the U.S. consumer market.

The dialogue also featured insights from the Japan External Trade Organization (JETRO) and leading Japanese firms such as Itochu and Mitsui, who shared their business experiences in the country.

Officials expressed confidence that this new era of cooperation would not only attract much-needed investment to Sri Lanka but also create a stable, rules-based trade environment independent of shifting trans-Pacific tensions.

As the U.S. continues to implement its aggressive tariff agenda, this Sri Lanka-Japan alliance serves as a clear indicator of a wider global trend which is the rise of a multipolar economic order where middle powers and regional giants are writing their own rules of engagement. (Colombo/February 17/2026)

Tuesday February 17, 2026 10:05 am

ECONOMYNEXT – Sri Lanka energy firm Vidullanka PLC said it has been awarded a standalone battery energy storage system (BESS) project in Vavunathivu.

This will be developed with WindForce PLC.

“The Vavunathivu project will be developed under the Build, Own and Operate (BOO) model with an operating contract period of fifteen (15) years,” the company said in a stock exchange filing.

The facility will have a total installed capacity of 10MW/40MWh.

Project financing is expected to follow an 80:20 Debt-to-Equity structure, totalling 1.73 billion rupees with a 50 percent stake held by Vidullanka. (Colombo/Feb17/2026)

Tuesday February 17, 2026 9:58 am

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 309.20/22 to the US dollar in the spot market Tuesday, from 309.20/25 the previous day, dealers said, while bond yields were broadly steady.

A bond maturing on 01.07.2028 was quoted flat at 9.03/05 percent.

A bond maturing on 15.09.2029 was quoted at 9.44/46 percent.

A bond maturing on 15.03.2031 was quoted at 9.70/75 percent, up from 9.65/75 percent.

A bond maturing on 15.12.2032 was quoted at 10.13/15 percent.

A bond maturing on 01.06.2033 was quoted at 10.36/42 percent, up from 10.35/42 percent.

Rs 60,000 million Treasury bills are to be issued through an auction on Wednesday (18)

The telegraphic transfer rates for the American dollar were 305.7500 buying, 312.7500 selling; the British pound was 415.2934 buying, and 426.7850 selling, and the euro was 359.7771 buying, 371.3251 selling.

On the Colombo Stock Exchange, the ASPI was up 0.28 percent, or 66.90 points, at 23,967; and the S&P SL20 was down 0.18 percent, or 12.06 points, at 6,727. (Colombo/Feb17/2026)

Tuesday February 17, 2026 7:00 am

ECONOMYNEXT – New active credit cards in Sri Lanka increased by 21,984 in December last year, the central bank data showed, as the country’s economic recovery and lower interest rates help boost the usage of them.

The number of total active credit cards recorded 2,166,186 by end December, compared to 2,144,202 by end November, showing an increase of 1 percent in the month.

The active credit cards have risen by 7.8 percent or 157,730 in 2025, the data showed.

Active credit cards in Sri Lanka rose by 4.8 percent or 91,371 in 2024 with the island nation’s economic recovery and strong promotions for credit cards amid falling interest rates.

Analysts have said most banks have tied up with super markets and other vendors to promote credit cards in the falling interest rate regime as the country’s economy has shown more-than-expected recovery

They say Sri Lanka’s economic recovery and stability have helped customers to use more credit cards than in 2023.

Some analysts said higher interest (penalty) rates on credit cards also had prompted some users to cancel their cards after the economic crisis and the same customers might be actively using the cards now due to declined rates.

Active credit cards fell 1.8 percent or by 39,991 in 2023 after the country declared bankruptcy in 2022 amid unprecedented hike in the Central Bank’s monetary policy rates.

The central bank spiked the interest rates sharply in April 2022 to fight against a hyperinflation.

However, the inflation slowed to a deflation September 2024 before turning to positive in August last year amid the central bank’s reduction of key policy rates eight times since June 2023. (Colombo/February 17/2026)

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 5:30 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)