SenFin Research – News Updates – 12 May 2026

Export sector to benefit from lower input costs- World Bank
The ongoing and planned trade reforms, including the gradual removal of para-tariffs, could improve competitiveness and increase household consumption by around 3.1%, with stronger gains for lower-income households, the World Bank’s April 2026 South Asia Economic Update release on Friday(8) said.
Source: (Daily News) https://dailynews.lk/2026/05/12/business/993164/export-sector-to-benefit-from-lower-input-costs-world-bank/

CBSL economist warns subsidy reversals could recreate crisis conditions
Amid rising inflation, recent tax policy changes to widen the net and increase rates, and the electricity tariff hike this week, Central Bank of Sri Lanka (CBSL) Deputy Governor Dr. Chandranath Amarasekara has warned against reversing Sri Lanka’s post-crisis fiscal and pricing reforms.
Source: (Daily FT) https://www.ft.lk/top-story/CBSL-economist-warns-subsidy-reversals-could-recreate-crisis-conditions/26-791789

Country to move towards innovation-driven, high-value-added exports
The establishment of the Viet Nam-Sri Lanka Business Council will enhance bilateral relations, fostering partnerships beyond trade driven by shared ambitions, Export Development Board Chairman Mangala Wijesinghe told the Viet Nam Sri Lanka Business forum held in Colombo on Friday (8).
Source: (Daily News) https://dailynews.lk/2026/05/12/business/993158/country-to-move-towards-innovation-driven-high-value-added-exports/

Govt. admits to hardships from energy tariff hike
Power Minister Anura Karunathilaka yesterday acknowledged that the Government’s decision to increase electricity tariffs by 18% will have an indirect impact on consumers across the economy, whilst insisting that the direct effect on the majority of electricity users remains limited.
Source: (Daily FT) https://www.ft.lk/front-page/Govt-admits-to-hardships-from-energy-tariff-hike/44-791787

Govt. withholds over $ 37 m from coal suppliers amid quality dispute: Deputy Power Minister
Deputy Power Minister Arkam Ilyas yesterday said the Government has withheld over $ 37 million from coal suppliers, including fines and performance guarantees, as authorities assess losses linked to disputed coal shipments used for power generation.
Source: (Daily FT) https://www.ft.lk/front-page/Govt-withholds-over-37-m-from-coal-suppliers-amid-quality-dispute-Deputy-Power-Minister/44-791783

Govt. to add 300 MW battery storage to grid by year-end
In a major push to strengthen grid stability and accelerate renewable energy integration, the Government yesterday announced plans to add 250 to 300 megawatts (MW) of Battery Energy Storage Systems (BESS) to the national grid by the end of this year.
Source: (Daily FT) https://www.ft.lk/front-page/Govt-to-add-300-MW-battery-storage-to-grid-by-year-end/44-791781

SL tech firms step up Europe push
Five Sri Lankan ICT companies have advanced new business leads in Germany and Sweden through a market exposure programme organised under the Export Development Board (EDB) and Import Promotion Desk Germany (IPD) initiative, as the sector looks to strengthen its presence in Europe.
Source: (the morning) https://www.themorning.lk/articles/YnqW62hrshk4Ue87CuC5

Sri Lanka to pay Rs8.5bn compensation to former CEB employees
Sri Lanka will pay 8.5 billion rupees as compensation to 1,896 employees who accepted a golden handshake when the Ceylon Electricity Board was split into 6 state-owned companies, energy minister Anura Karunathilaka said.
Source: (economynext) https://economynext.com/sri-lanka-to-pay-rs8-5bn-compensation-to-former-ceb-employees-270855/

Minister denies decision to privatise East Container Terminal despite investor interest
Ports Minister Anura Karunathilaka yesterday denied speculation that the Government has decided to privatise the East Container Terminal (ECT), insisting that no policy decision has been taken despite growing investor interest.
Source: (Daily FT) https://www.ft.lk/front-page/Minister-denies-decision-to-privatise-East-Container-Terminal-despite-investor-interest/44-791780

Govt. to tighten environmental laws with pollution charges, stricter oversight
The Government is set to tighten environmental regulation through sweeping amendments to the National Environmental Act that will introduce pollutant-based charging systems, stricter industrial approvals and legally enforceable compliance obligations for large-scale development projects.
Source: (Daily FT) https://www.ft.lk/business/Govt-to-tighten-environmental-laws-with-pollution-charges-stricter-oversight/34-791808

Sri Lanka’s new environment bill to bring load-based fines, stricter project monitoring
Sri Lanka is set to amend its environmental regulatory landscape by amending the National Environmental Act, Environment Minister Dammika Patabendi said, by introducing load-based charging for pollutants and granting legal teeth to Strategic Environmental Assessments (SEA) for large-scale developments.
Source: (economynext) https://economynext.com/sri-lankas-new-environment-bill-to-bring-load-based-fines-stricter-project-monitoring-270884/

Proposal to establish ‘Gem Bank’ to make Lanka richest country in world
A special proposal has been submitted to make Sri Lanka the richest country in the world, based on the gem resources it possesses.
Source: (Daily News) https://dailynews.lk/2026/05/12/business/993177/proposal-to-establish-gem-bank-to-make-lanka-richest-country-in-world/

Lanka Hospitals presents 2025 Annual Report and Five-Year Strategic
Lanka Hospitals recently presented its Annual Report for 2025 and the Five-Year Strategic Plan for 2026–2030 to the Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayantha and the Secretary to the Treasury and Ministry of Finance, Planning and Economic Development, Dr. Harshana Suriyapperuma.
Source: (Daily News) https://dailynews.lk/2026/05/12/business/993084/lanka-hospitals-presents-2025-annual-report-and-five-year-strategic-roadmap/

Sri Lanka’s wheat consumption rises on economic and tourism revival
Sri Lanka’s appetite for wheat, the island’s second staple food, is on a steady upward trajectory, fuelled by a recovering economy and a booming tourism sector but yet to reach the pre-crisis levels.
Source: (Daily Mirror) https://www.dailymirror.lk/business-main/Sri-Lankas-wheat-consumption-rises-on-economic-and-tourism-revival/245-340024

Para-tariff reduction plan seen as boost for long-term competitiveness
The proposed para-tariff reductions are an important signal of changing policy thinking in the country, asserted Institute of Policy Studies Executive Director Dr. Dushni Weerakoon.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Para-tariff-reduction-plan-seen-as-boost-for-long-term-competitiveness/273-340023

SL-India discuss fresh reconstruction push under US $ 450mn package
Sri Lanka and India are looking to further strengthen bilateral ties through a proposed US $ 450 million post-conflict reconstruction package discussed during a high-level meeting between the two countries on Saturday, according to the Finance Ministry.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/SL-India-discuss-fresh-reconstruction-push-under-US-450mn-package/273-340022

Sri Lanka, Cuba discuss bilateral cooperation amidst US blockade
Sri Lanka and Cuba’s longstanding, strong and friendly bilateral ties were discussed when Cuban ambassador Patricia Lázara Pego Guerra met Sri Lanka’s Speaker Jagath Wickramaratne at the parliament recently.
Source: (economynext) https://economynext.com/sri-lanka-cuba-discuss-bilateral-cooperation-amidst-us-blockade-270687/

Giving priority to state in Sri Lanka bankruptcy law questioned
A plan to give priority for Inland Revenue Department to collect taxes ahead of other creditors in a proposed bankruptcy law has been questioned, in a hearing at the parliament’s Committee on Public Finance.
Source: (economynext) https://economynext.com/giving-priority-to-state-in-sri-lanka-bankruptcy-law-questioned-269727/

PM Modi calls for WFH, travel curbs amid oil price hike
Indian Prime Minister Narendra Modi has urged citizens to curb fuel use, revive working from home, pause gold purchases, and reduce overseas travel to deal with a surge in global energy prices amid the continued crisis in the Middle East due to the Iran war.
Source: (Daily FT) https://www.ft.lk/front-page/PM-Modi-calls-for-WFH-travel-curbs-amid-oil-price-hike/44-791782

Sri Lanka rupee flat; bond yields steady
Sri Lanka’s rupee was quoted at 321.40/90 to the US dollar in the spot market on Monday, from 321.70/90 on Friday, dealers said, while bond yields were broadly steady.
Source: (economynext) https://economynext.com/sri-lanka-rupee-flat-bond-yields-steady-270788/

Sri Lanka stocks close down, banks lead turnover
Sri Lanka’s Colombo Stock Exchange closed down on Monday, CSE data showed.
Source: (economynext) https://economynext.com/sri-lanka-stocks-close-down-banks-lead-turnover-270878/

HNB Life records 54% GWP Growth in Q1 2026
HNB Life PLC reported a strong start to the year for the three months ended 31 March 2026, continuing its growth trajectory following its recent rebranding and reinforcing its position as a leading life insurer in Sri Lanka.
Source: (Daily News) https://dailynews.lk/2026/05/12/business/993184/hnb-life-records-54-gwp-growth-in-q1-2026/

Rayynor ups stake in Seylan to 10% with fresh Rs. 1.2 b investment
Famed media industry figure and business leader Rayynor Silva yesterday further strengthened his foothold in the financial services industry, upping his stake in Seylan to 10% from 6% with an investment of Rs. 1.2 billion.
Source: (Daily FT) https://www.ft.lk/front-page/Rayynor-ups-stake-in-Seylan-to-10-with-fresh-Rs-1-2-b-investment/44-791788

DFCC demonstrates disciplined performance and balance sheet strength in 1Q 2026
DFCC Bank delivered a strong financial performance for the period ended 31 March 2026, underscoring the robustness of its strategy, disciplined execution, and the resilience of its balance sheet.
Source: (Daily FT) https://www.ft.lk/front-page/DFCC-demonstrates-disciplined-performance-and-balance-sheet-strength-in-1Q-2026/44-791785

ACME Printing to cut stated capital by Rs. 1.6 b to offset accumulated
ACME Printing and Packaging PLC has proposed a Rs. 1.6 b reduction in stated capital to offset accumulated losses and restructure its balance sheet.
Source: (Daily FT) https://www.ft.lk/business/ACME-Printing-to-cut-stated-capital-by-Rs-1-6-b-to-offset-accumulated-losses/34-791812

HNB Life posts 54% GWP growth in 1Q
HNB Life PLC yesterday said it posted a strong start to the year for the three months ended 31 March 2026, continuing its growth trajectory following its recent rebranding and reinforcing its position as a leading life insurer in Sri Lanka.
Source: (Daily FT) https://www.ft.lk/financial-services/HNB-Life-posts-54-GWP-growth-in-1Q/42-791803

India’s Durga Infra raises stake in Hatton Plantations to 12.5% following Rs.262mn share purchase
Hatton Plantations PLC this week saw its parent company Lotus Renewable Energy (Private) Limited sell over 10.24 million of its shares to Durga Infra (Pvt.) Ltd.
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/Indias-Durga-Infra-raises-stake-in-Hatton-Plantations-to-12-5-following-Rs-262mn-share-purchase/273-340020

NDB exits Seylan Bank stake through Rs.2.77bn market transaction
National Development Bank PLC (NDB) disposed of its entire 26.63 million share stake in Seylan Bank PLC, at Rs.104 per share, through a transaction executed on the Colombo Stock Exchange (CSE), marking its exit from what it described as a “non strategic investment”
Source: (Daily Mirror) https://www.dailymirror.lk/business-news/NDB-exits-Seylan-Bank-stake-through-Rs-2-77bn-market-transaction/273-340032

Asia Asset Finance PBT rises to Rs. 1.93 b
Asia Asset Finance PLC recorded a 203% increase in Profit Before Tax to Rs. 1.93 billion for the financial year ended 31 March, supported by stronger interest income, wider net interest income, balance sheet expansion, and improved asset quality.
Source: (the morning) https://www.themorning.lk/articles/HWOqBOQ7CfTO6LPEdWpT