Category: Lead Story
Sri Lanka GDP Growth Rate YoY increased to 5.1-pct
The GDP for the first quarter of 2026 at constant price (2015) has increased up to Rs. 3,652,503 million from Rs. 3,476,664 million which was reported in the first quarter of 2025. The GDP growth rate for the first quarter of year 2026 has been reported as 5.1 percent of positive growth rate. In the […]
Fitch Changes Global Sovereigns Sector Outlook to ‘Deteriorating’ on Iran War Impact
Fitch Ratings has changed its 2026 global sovereign sector outlook to ‘deteriorating’ from ‘neutral’ because of the impact of the US-Iran war. We expect the conflict will weaken GDP growth, raise inflation and bond yields, and heighten geopolitical risks. However, recent resilience of the global economy and financing conditions temper risks. We have changed five […]
CBSL Updates Export Proceeds Rules; Mandates Monthly Rupee Conversion
The Central Bank of Sri Lanka (CBSL) has issued updated regulations governing the repatriation and utilization of export proceeds. Signed by CBSL Governor Nandalal Weerasinghe as Chairperson of the Governing Board, the new directive introduces strict timelines for exporters to convert their residual foreign currency earnings into Sri Lanka Rupees. The rules, officially titled the […]
Sri Lanka Tourism Revenues Stable, Minister Clarifies
Sri Lanka’s tourism revenues have not declined, Foreign Minister Vijitha Herath told Parliament on Tuesday, explaining that recent figures reflect a shift to internationally recognized survey methodologies rather than a downturn in earnings. “The actual dollar amount spent by a foreign tourist in Sri Lanka has been accurately determined, and there has been no major […]
Oil Crisis Hits World Growth Outlook as Forecasts Revised Down: Fitch Ratings
World growth prospects have been hurt by the oil crisis prompted by the US-Iran war, Fitch Ratings says in its latest Global Economic Outlook (GEO). This has led to Fitch lowering its 2026 forecast for global growth by 0.2pp to 2.4%. Forecast cuts have been widespread as higher inflation squeezes real wages, dampens consumption and […]
Oil Market Will Return to Oversupply Once Hormuz Reopens: Fitch Ratings
The Hormuz strait closure created a logistical supply shock but does not alter the direction of the market, Fitch Ratings says in a new report. A rapid production recovery in the region, strong non-OPEC growth and potentially more aggressive OPEC policy are likely to re-establish oversupply in 4Q26 and drive prices lower once the strait […]
Ceylon Chamber Expresses Concern Over New US Labour-Related Tariffs and Calls for Urgent Engagement
The Ceylon Chamber of Commerce is concerned by the announcement of new labour-related tariffs by the United States on several countries, including a proposed 12.5% tariff on exports from Sri Lanka. This development comes at a time when Sri Lanka was continuing discussions with the US following the suspension of the previously announced reciprocal tariffs […]
Fitch Upgrades Maldives to ‘CCC-‘ from ‘CC’
Fitch Ratings has upgraded the Maldives’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC-‘ from ‘CC’. Fitch typically does not assign Outlooks to sovereigns with a rating of ‘CCC+’ or below. A full list of rating actions is at the end of this Rating Action Commentary. The rating upgrade reflects Fitch’s assessment that default risks […]
IMF Board Approves Sri Lanka’s Fifth & Sixth Reviews, Unlocks USD 695 Mn for Reforms
The International Monetary Fund’s Executive Board has completed the combined Fifth and Sixth Reviews of Sri Lanka’s Extended Fund Facility, unlocking immediate access to SDR 508 million (approximately US$695 million) to bolster the country’s economic policies and reforms. Performance under the program has been described as broadly strong. Key prior actions, including restoring fuel and […]
Central Bank increases Overnight Policy Rate to 8.75-pct
The Monetary Policy Board, at its meeting held yesterday, decided to increase the Overnight Policy Rate (OPR) by 100 bps to 8.75%. Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR), which are linked to OPR with predetermined margins of ± 50 bps, are also increased to 8.25% and 9.25%, respectively. The Board […]
CBSL introduces maximum Loan to Value ratio for gold backed lending & tightens LTV ratios for motor vehicles
The Governing Board of the CBSL decided to introduce a maximum LTV ratio for credit facilities secured by gold and tighten the maximum LTV ratios applicable to credit facilities granted in respect of motor vehicles with effect from 25 May 2026. These steps are taken by the CBSL in line with its macroprudential authority, in […]
Prime Melwa Formally Commences Asia’s Global Marina-Front Architectural Masterpiece
Prime Melwa Port City (Pvt) Ltd has formally commenced its highly anticipated world-class marina living experience at Port City Colombo, marking a significant milestone in the development of one of the region’s most prestigious waterfront residential destinations. Positioned as Asia’s Global Marina Front Masterpiece, the landmark project is poised to redefine luxury waterfront living in […]