Sri Lanka rupee falls to 345.50 to US dollar for TTs, bond yields up

Wednesday May 20, 2026 5:37 pm

ECONOMYNEXT – There was no spot closing quote for Sri Lanka’s rupee on Wednesday after trades at 329.25 (low) and 330.25 (high) to the dollar in the day, dealers said, while bond yields closed up.

The telegraphic transfer rate for the dollar was 336.5000 buying, 345.5000 selling.

A bond maturing on 15.12.2026 closed at 9.55/70 percent.

A bond maturing on 15.12.2029 closed at 10.30/45 percent, up from 10.20/30 percent.

A bond maturing on 01.08.2030 closed at 10.35/50 percent, up from 10.30/40 percent.

A bond maturing on 15.06.2034 closed at 11.40/50 percent, up from 11.35/42 percent.

A bond maturing on 15.08.2036 closed at 11.25/70 percent. (Colombo/May20/2026)

Thursday May 21, 2026 1:03 am

ECONOMYNEXT – Sri Lanka is keen in joining Shanghai Cooperation Organization initiatives, foreign minister Vijitha Herath told a visiting delegation.

The delegation headed by SCO Secretary General Nurlan Yermekbayev met Herath for discussions on Wednesday.

The talks focused on increasing Sri Lanka’s engagement with the SCO and enhancing collaboration with SCO partners in several key areas, particularly tourism, transport, logistics, and agriculture Herath said.

“I conveyed Sri Lanka’s keen interest in joining SCO initiatives and highlighting investment opportunities in the Port City and Free Trade Zones, and requested for the Secretary-General’s support in promoting Sri Lanka as a tourism and investment hub.” (Colombo/May21/2026)

Wednesday May 20, 2026 4:27 pm

ECONOMYNEXT – Sri Lanka’s Treasury bill yields dropped across maturities at Wednesday’s auction, data from the Public Debt Management Office showed, with 67.23 billion rupees bills sold of an offered 140 billion.

The 3-month bill was up 5 basis points at 8.18, with 65 billion rupees offered and 46.12 billion sold.

The 6-month bill was up 2 basis points at 8.25 percent, with 40 billion rupees offered and 16.43 billion sold.

The 12-month yield was unchanged at 8.49 percent, with 35 billion rupees of bills offered and 4.68 billion sold.

All 3 bills are available on tap.

“In the Phase II, the aggregate eligible amount for subscription from the said maturities would be the
difference of amount accepted vs amount plus 10% of the aggregate amount offered at the auction.”

The date of settlement is May 22. (Colombo/May20/2026)

Wednesday May 20, 2026 3:52 pm

ECONOMYNEXT – Tourist arrivals into Sri Lanka improved in May, the official data showed, after falling in March and April due to the Middle East conflict, which led to a raft of cancellations.

The number of tourists came to Sri Lanka fell 19.8 percent in March to 183,979 compared to the same month in the last year, while it slipped 22.3 percent in April to 135,643.

However, the South Asian island nation saw 75,465 tourists visiting the country in the first 17 days of May, 0.9 percent lower than same number of days in May 2025.

Sri Lanka received 76,207 tourists in the first 17 days of May last year.

The country recorded an average daily arrival of 4,439 tourists in the first 17 days of this month, compared to 4,288 in the whole month of May last year.

Analysts cited flight schedules gradually returning to normal after the conflict as reasons for the improvement in May tourist arrivals.

Sri Lanka has also witnessed a sharp fall in tourism revenue since the start of the Middle East conflict.

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The recent escalation of the Middle East conflict has abruptly disrupted the steady recovery trajectory of Sri Lanka’s tourism sector, which had been rebuilding momentum since the 2022 economic crisis.

Driven by severe global aviation disruptions, airspace closures, and compromised Gulf carrier networks, foreign exchange earnings from tourism plummeted by 37 percent year-on-year in March 2026 to US$ 223.7 million and 39 percent in April.

This sudden geopolitical shock pulled cumulative earnings for the first quarter of 2026 down by 15 percent to US$ 954 million, placing the government’s ambitious year-end targets of 3 million arrivals and US$ 4 billion to US$ 4.5 billion in revenue in serious jeopardy.

Compounding this revenue compression is a high economic leakage factor, where an estimated US$ 1.13 billion of the US$ 3.2 billion generated in 2025 leaked back out of the country for procurement imports like food and fuel, leaving the island’s external sector under severe pressure as declining gross tourism receipts fail to adequately buffer a widening merchandise trade deficit. (Colombo/May 20/2026)

Wednesday May 20, 2026 3:45 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Wednesday, with analysts saying the market was reacting to the current depreciation of the rupee.

The rupee buying rate was 334.50 to the dollar, and selling rate was 343.50.

The ASPI closed down 1.98 percent, or 441.87 points, at 21,856; while the S&P SL20 closed down 1.57 percent, or 96.38 points, at 6,052.39.

Top negative contributors to ASPI were Melstacorp (down 3.19 percent at Rs.182.25), Sampath Bank (down 2.57 percent at Rs.142.00), John Keells Holdings (down 2.46 percent at Rs.19.80), Ceylinco Insurance (down 4.56 percent at Rs.3,025.50), and Hatton National Bank (down 1.35 percent at Rs.400.50).

Cargills (Ceylon) (up 1.24 percent at Rs.693.25), Kandy Hotels Company (up 3.29 percent at Rs.15.70), and Swisstek (Ceylon) (up 2.08 percent at Rs.78.50) were top positive contributors.

Market turnover was 3.8 billion rupees. Capital goods led turnover with 1.36 billion rupees.

Crossings were observed in John Keells Holdings (4 million), and Hayleys (110,000).

Other Asian markets showed mixed results, with India’s NIFTY 50 up 0.27 percent at 23,681.60 points, while Hong Kong’s Hang Seng index down 0.57 percent to 25,651.12 points.

Ambeon Holdings released its financials for the March 2026 quarter, with a loss of Rs.221.7 million, compared to Rs.144 million in 2025. The share closed at Rs.40.40, down 4.72 percent. (Colombo/May20/2026)

Wednesday May 20, 2026 2:00 pm

ECONOMYNEXT – Revenue collected by Sri Lanka Customs in the first 18 days of May 2026 has accounted for nearly 65 percent of the month’s target, official data showed.

Customs’ May revenue target has been set at 187.8 billion rupees. The revenue-collecting body collected 122 billion rupees in the first 18 days of this month, the data showed.

Revenue has exceeded the target every month this year so far through April with Customs achieving 47 percent of the 2026 target in the first 138 days of the year, the data showed.

Last year, Customs collected a record 2,551 billion rupees in revenue, higher than the revised target of 2,241 billion rupees for the year, and achieved 64.2 percent higher revenue than the previous year’s revenue of 1,553 million rupees.

Customs has set a revenue target of 2,207 billion rupees for this year, 13.5 percent less than last year as it expects a significant decline in car imports.

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Sri Lanka Customs’ revenue jump is largely due to stronger enforcement, improved valuation practices, and a rebound in import volumes after years of contraction.

Analysts expect a hit on the Customs revenue after the government has imposed an additional 50 percent surcharge on Customs Import Duty for personal vehicles for three months from May 16.

Following the economic crisis of 2022, imports fell sharply as the country imposed restrictions to conserve foreign exchange.

However, with the stabilization of reserves, the relaxation of certain import controls, and a steady recovery in consumer demand, customs collections from import duties, excise, and other levies have risen.

Officials note that tighter monitoring of under-invoicing and misdeclaration of goods has also contributed to boosting state revenue.

The combined effect of increased import activity, currency movements, and stricter enforcement has positioned Customs as one of the top revenue sources for the Treasury in 2025, providing a vital cushion as the state works to meet fiscal targets under the IMF-supported program. (Colombo/May 20/2026)

Wednesday May 20, 2026 11:51 am

ECONOMYNEXT – New active credit cards in Sri Lanka increased by 22,473 in March this year, central bank data showed, amid economic recovery and lower interest rates.

The number of total active credit cards reached 2,215,853 by the end of March, compared to 2,193,380 by the end of February, showing a 1% increase for the month.

The number has expanded by 2.3 percent in the first three months of this month.

Active credit cards rose 7.8% (157,730) in 2025, following a 4.8% (91,371) rise in 2024. This growth was driven by the island nation’s economic recovery and strong credit card promotions 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

Sri Lanka’s economic recovery and stability have helped customers to use more credit since 2023.

Some expect the number to gradually fall as the country has seen some economic slowdown with fuel rationing since March.

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

Active credit cards fell 1.8% (39,991) in 2023 after the country declared bankruptcy in 2022 amid an unprecedented hike in the Central Bank’s monetary policy rates.

The central bank sharply increased interest rates in April 2022 to fight 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.

The market expects policy tightening cycle to begin soon due to rupee depreciation in the recent past and higher inflation following the fuel price hikes. (Colombo/May 20/2026)