Colombo Stock Exchange closes higher as capital goods sector leads turnover

Thursday July 23, 2026 4:19 pm

ECONOMYNEXT – Sri Lanka's Colombo Stock Exchange closed up on Thursday trading, CSE data showed, with the benchmark All Share Price Index moving up 0.24 percent.

"In terms of dollar outflow, a massive sum of around 715 million USD has left the country, which adversely affects our balance of payments," Jayantha said.

The ASPI was up 49.81 points at 21,199.37, while the more liquid S&P SL20 was up 0.22 percent, or 13.25 points, at 5,945.87.

Positive contributors to the ASPI were Hatton National Bank (up 1.04 percent at 388.00 rupees), Carson Cumberbatch (up 6.19 percent at 711.50 rupees), Ceylinco Holdings (up 1.75 percent at 2,900.00 rupees), and National Development Bank (up 1.63 percent at 109.25 rupees).

Melstacorp (down 0.69 percent at 179.50 rupees), Cargills (Ceylon) (down 1.41 percent at 629.25 rupees), and Hayleys (down 0.66 percent at 225.50 rupees) were top negative contributors.

Market turnover was 1.078 billion rupees. Capital goods led turnover with 317.4 million rupees. (Colombo/July23/2026)

Thursday July 23, 2026 3:46 pm

ECONOMYNEXT – Sri Lanka's parliament has taken up new regulations under the Import and Export (Control) Act to curb illicit capital outflows, following police investigations that revealed over 715 million US dollars had left the country through advance payment loopholes without any goods arriving.

Presenting the amendments in parliament, Deputy Minister of Finance and Planning Anil Jayantha said the measures under Regulation No. 5 and Regulation No. 6 of 2026 aim to stop trade irregularities, protect local industries, and create a fair playing field for tax-paying businesses.

The government disclosed that investigations carried out by the Criminal Investigation Department (CID) and law enforcement agencies from 2023 to 2026 uncovered a massive operation involving roughly 55 individuals and 107 companies exploiting foreign exchange rules.

Under current provisions, importers were granted between 360 to 720 days to bring goods into the country after sending advance payments abroad. However, bad actors used legal gaps to send funds out without delivering imports.

"These introduced regulations aim to minimize those inefficiencies, enhance the monitoring mechanism, and close loopholes existing between our rules and regulations that certain groups have exploited to act illegally," Jayantha said.

To tighten control, the new regulations make registration with the Customs Department mandatory before banks issue advance payments. Importers must also supply transaction details, beneficiary information, and a Unique Identification Number (UIN) alongside Taxpayer Identification Numbers (TIN).

The government also intends to present a Cabinet paper to amend the Foreign Exchange Act No. 12 of 2017. The move seeks to reclassify non-compliance in remitting foreign exchange as a criminal offense rather than a civil one subject only to Central Bank fines.

"In terms of dollar outflow, a massive sum of around 715 million USD has left the country, which adversely affects our balance of payments," Jayantha said.

Responding to the government, Opposition MP Harsha de Silva argued that the issue stems from failing to enforce existing laws and poor technical coordination, rather than a lack of legislation.

De Silva pointed out that the main flaw lies within the Customs department's ASYCUDA software, which fails to reconcile customs documentation with bank transaction records. He noted that trade-based money laundering intelligence provided by the Central Bank's Financial Intelligence Unit (FIU) went unacted upon.

"The problem lies within a system called the ASYCUDA system. The ASYCUDA system cannot reconcile the Customs declaration document with the banking transaction document," de Silva said.

During committee investigations, police officials revealed severe enforcement lapses, including bank accounts being opened by entering a simple full stop instead of a valid TIN number, and shell companies registered at the Registrar of Companies (ROC) lacking verified addresses or background records.

De Silva warned that forcing legitimate importers to register across three different state entities creates severe bureaucratic delays and inflates costs for consumers.

"Because there is no coordination, these thieves slip through the cracks. And when thieves slip through, instead of enforcing the existing law, you bring in new laws!" de Silva said.

Addressing concerns over business disruptions, Jayantha reassured Parliament that law-abiding importers have nothing to fear, clarifying that recent arrests were tied strictly to non-cooperation with official customs inquiries. (Colombo/Jul23/2026)

Thursday July 23, 2026 11:27 am

ECONOMYNEXT — The Central Bank of Sri Lanka has warned the public against investing in informal plantation schemes promising high returns, while cautioning media organizations against broadcasting advertisements that mislead citizens into illegal deposit-taking ventures.

Central Bank Governor Nandalal Weerasinghe said non-bank supervision officials have stepped up action following a rise in plantation and forestry companies soliciting public funds illegally under the guise of cultivation projects.

Promising monthly payouts and huge returns at the end of a project constitutes unauthorized deposit-taking, which is illegal under Sri Lankan law.

"If they come asking for money from the public, saying, 'Invest in this, we will pay a monthly sum and a large return at the end,' then there is a problem," Weerasinghe said.

The Governor urged investors who have already placed money in such operations to request their funds back immediately to test the legitimacy of the businesses.

If companies fail or refuse to return the money, investors should lodge a formal complaint with the Central Bank so officials can investigate and initiate legal proceedings against potential pyramid schemes.

Central Bank officials also raised concerns over media outlets carrying scrolling banners and half-page advertisements for unauthorized financial schemes, often alongside news reports warning against them.

Weerasinghe noted that while these advertisements frame themselves as general invitations to join cultivation projects rather than explicit deposit requests, they rely on telephone numbers at the bottom to solicit illegal deposits once callers reach out.

"The whole purpose of putting that phone number at the bottom is to make the connection through it. After that, they go after the people to get them to deposit money," Weerasinghe said.

Central Bank Deputy Governor K. G. P. Sirikumara reminded media institutions that carrying advertisements for illegal deposit solicitors carries serious legal implications under the country's banking laws.

"A direct responsibility has been assigned to media institutions to verify… whether they hold approval or a valid license from the Central Bank for that purpose," Sirikumara said.

The Central Bank appealed to all TV channels and print media outlets to ethically verify whether advertisers possess valid Central Bank licenses before accepting ads that solicit public deposits. (Colombo/Jul23/2026)

Thursday July 23, 2026 10:51 am

ECONOMYNEXT – Sri Lanka's Colombo Stock Exchange trended up during Thursday trading, CSE data showed, with the benchmark All Share Price Index moving up 0.40 percent.

The ASPI was up 85.60 points at 21,235.16, while the more liquid S&P SL20 was up 0.73 percent, or 43.04 points, at 5,975.66.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 1.12 percent at 203.50 rupees), Hatton National Bank (up 0.78 percent at 387.00 rupees), Ambeon Holdings (up 4.12 percent at 37.90 rupees), Access Engineering (up 1.47 percent at 76.00 rupees), and Melstacorp (up 0.41 percent at 181.50 rupees).

SMB Finance (down 10.00 percent at 0.90 rupees) and Hemas Holdings (down 0.64 percent at 31.10 rupees) were top negative contributors.

Market turnover was 212 million rupees. Banks led turnover with 76.8 million rupees.

Commercial Bank of Ceylon announced the final allotment for its Basel III compliant, Tier 2 debenture issue. The issue received 167 applications requesting over 244.23 million debentures worth 24.42 billion rupees, comfortably oversubscribing the total 200 million debenture limit (including options).

The bank resolved to allocate 150 million debentures to identified investors on a preferential basis, with other applicants receiving full allotment for up to 250,000 debentures, plus 45.63 percent of any remaining balance applied for. (Colombo/July23/2026)

Thursday July 23, 2026 10:18 am

ECONOMYNEXT – Sri Lanka's Employees' Provident Fund (EPF) has exited its investment in unlisted Canwill Holdings Private Limited, absorbing its 5 billion rupee capital back into the fund after transferring its stake to the government as part of a restructuring plan, central bank officials said.

The unlisted investment no longer appears in the retirement fund's investment documents after the transaction was finalized by the end of last year, allowing the EPF to redeploy the capital into other income-generating assets.

The EPF, managed by the Central Bank of Sri Lanka, had not earned returns on its investment in Canwill Holdings, leading to the restructuring decision.

Concerns have been raised that the EPF's yield is too low and keeping it under central bank management is a conflict of interest as the agency also is charged with selling government debt and that it is a 'captive fund'.

An official from the Central Bank's EPF department explained that the fund entered an agreement during the government-led restructuring process to hand over its rights in Canwill Holdings.

"In the restructuring process undertaken by the government, based on the principle that the rights we held in Canwill Holdings would be transferred to the government, then restructured, and if any additional amount was received after selling it, it would be returned to us," an official from the Central Bank's Employees' Provident Fund department said.

Under the agreement, while the 5 billion rupees principal was recovered and reallocated, the EPF retains a claim to any future profits if the asset is sold by the government.

"Because our investment there was 5 billion. We took that 5 billion into the EPF and gave our share to the government. Therefore, it is no longer in our portfolio now," the official said. "So, we subsequently utilized those funds for other investments and are currently receiving a return from them."

Addressing changes in annual valuations of unlisted equity holdings, Central Bank Governor Nandalal Weerasinghe noted that unlisted assets undergo year-to-year adjustments to reflect realistic financial values under standard accounting practices.

"In that very shareholding, when doing a mark-to-market valuation, accordingly, a market valuation must be done from year to year in accordance with IFRS (International Financial Reporting Standards). It changes based on that. So, over time, as its market valuation changes—similar to economic fluctuations—that valuation decreases," Weerasinghe said.

The EPF is the country's largest state-managed pension fund, holding private sector worker savings managed under the purview of the Central Bank. (Colombo/Jul23/2026)

Thursday July 23, 2026 9:48 am

ECONOMYNEXT – Sri Lanka's rupee was quoted at 336.30/40 to the US dollar in the spot market on Thursday, from 336.35/40 the previous day, while bond yields were broadly steady, dealers said.

The telegraphic transfer rate for the dollar was 331.60 buying, 340.60 selling; the euro was 376.0793 buying, 389.9963 selling; and the pound was 442.8111 buying, 456.8567 selling.

A bond maturing on 15.09.2029 was quoted at 11.20/25 percent.

A bond maturing on 01.03.2030 was quoted at 11.35/45 percent.

A bond maturing on 01.08.2030 was quoted at 11.55/65 percent, up from 11.55/60 percent.

A bond maturing on 15.10.2030 was quoted at 11.60/68 percent, up from 11.60/65 percent.

A bond maturing on 01.10.2032 was quoted flat at 12.05/10 percent.

A bond maturing on 15.06.2034 was quoted flat at 12.15/30 percent.

A bond maturing on 01.07.2037 was quoted at 12.65/75 percent. (Colombo/Jul23/2026)

Thursday July 23, 2026 5:54 am

ECONOMYNEXT – Sri Lanka's Foreign Minister Vijitha Herath will attend the 33rd ASEAN Regional Forum and 50th Anniversary Commemoration of Treaty of Amity and Cooperation in the Philippines, the Ministry of Foreign Affairs said.

Herath will visit Manila from July 23 to 24 and is scheduled to address both meetings.

On the sidelines of the meetings, he will hold bilateral discussions with his counterparts from several participating countries, the Secretary-General of ASEAN, and senior officials of the European Union and the Asian Development Bank.

He will also have bilateral discussions with his Philippines counterpart Ma Theresa PLazaro, Secretary of Foreign Affairs.

During the visit, he is expected to officially open the Office of the Honorary Consul of Sri Lanka in Mindanao. (Colombo/Jul23/2026)

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