Sri Lanka Affairs

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Broad gains help Sri Lankan shares recover​

• CSE All Share index settled up 0.45% to 21,594.86

Reuters



Broad-based advances aided Sri Lankan shares gain some ground on Monday, after they fell on Friday and posted their worst week in over three years.

The CSE All Share index settled up 0.45% to 21,594.86. On Friday, the benchmark had shed 1.5%.

Healthcare stocks led sectoral gains with a 1.54% rise. Industrial Asphalts was the top percentage gainer on the CSE All Share, advancing 25%.

Financials rose 0.2% - the least among sub-sectors. Late on Friday, the central bank asked lenders to roll out relief measures tied to credit repayments for cyclone-hit borrowers.

The island nation is forging a hurdles-riddled recovery in the aftermath of a devastating Cyclone Ditwah, which has so far killed 635 people.

Trading volume on the CSE All Share fell to 83.2 million shares from 132.1 million in the previous session.

The equity market’s turnover dropped to 2.84 billion Sri Lankan rupees ($9.20 million) from 3.97 billion rupees in the previous session, according to exchange data.

Foreign investors were net buyers, purchasing stocks worth 68.6 million rupees, while domestic investors were net sellers, offloading shares worth 2.81 billion rupees, the data showed.

 

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Pakistan sends additional 200 tons of supplies to cyclone-hit Sri Lanka​

• Consignment includes tents, blankets, quilts, mosquito nets, camping lamps, mats, life jackets among others

BR Web Desk
December 11, 2025



Pakistan announced on Thursday that it had dispatched an additional 200 tons of humanitarian relief supplies to Sri Lanka, which will reach the cyclone-hit country on December 13.

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said that the decision came after he met with Sri Lankan leaders in Colombo and an evaluation of the situation onsite.

The minister visited Sri Lanka on Prime Minister Shehbaz Sharif’s instructions to convey Pakistan’s solidarity after Cyclonic Storm Ditwah.

“The consignment includes tents, blankets, quilts, mosquito nets, camping lamps, mats, life jackets, inflatable boats, dewatering pumps, medicines, milk powder and ready-to-use therapeutic food,” he said.

He said Pakistan remained ready to continue helping Sri Lanka recover from the humanitarian and infrastructural damage.

During his separate meetings with Sri Lankan Deputy Speaker, Mohomed Risvi Sali and Transport Minister, Bimal Rathnayake in Colombo on Wednesday, Chaudhry conveyed a message of solidarity from Pakistan’s prime minister, stressing that Islamabad remained deeply concerned about the scale of human and material losses caused by the cyclone.

“Pakistan considers Sri Lanka not only a long-standing friend but a key regional partner, and will continue to support the country through every stage of recovery as it works to restore normalcy for affected communities”, the federal minister added.

A chain of tropical storms and monsoonal rains has battered Southeast and South Asia, setting off landslides, flooding vast tracts and cutting off communities from Sumatra island’s rainforests to the highland plantations of Sri Lanka.

At least 1,812 people have been killed in the natural disasters rolling across Sri Lanka, Indonesia, Malaysia, Thailand and Vietnam over the past two weeks.

More than two million people in Sri Lanka – nearly 10 percent of the population – have been affected by last week’s floods and landslides triggered by Cyclone Ditwah, the worst on the island this century.

The Disaster Management Centre (DMC) said monsoon storms were adding more rain and making hillsides unstable, including in the central mountainous region and the north-western midlands.

On December 2, Pakistan dispatched 200 tons of humanitarian aid to Sri Lanka on the directives of PM Shehbaz and with support from the Chief of Army Staff.

 

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Sri Lanka’s consumer prices rise 2.4% on-year in November​

• Food inflation could go up to about 5.5% in the coming period with overall inflation reaching 3.5%-4%

Reuters
December 22, 2025

Sri Lanka’s consumer prices climbed 2.4% year-on-year in November, after rising 2.7% in October, the statistics department said on Monday.

The National Consumer Price Index captures broad retail price inflation and is released with a lag of about three weeks each month.

The annual inflation rate in the food category declined to 3.6% in November from 4.1% in October. In the non-food category, consumer prices were up 1.5% last month, in line with October’s 1.5% growth.


Sri Lanka’s food inflation could accelerate after Cyclone Ditwah smashed through the island in late November. Floods, prolonged inundation, and winds damaged more than 100,000 hectares of rice fields and impacted about 105,000 hectares of maize, pulses, bananas, and vegetables, authorities said.

Farmers have started replanting rice and vegetables across the country.

“Food inflation could go up to about 5.5% in the coming period with overall inflation reaching 3.5%-4% but it will taper off as fresh stocks of food reach the market,” said Raynal Wickremeratne, research co-head at Softlogic Stockbrokers.

“Overall we do not see it as being a major point of concern, yet.”

The Central Bank of Sri Lanka (CBSL) has set an inflation target of 5%, which it has said will be reached in mid-2026.

 

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Sri Lanka forecasts 5% growth in 2026, aided by post-cyclone reconstruction​

• This month, the Asian Development Bank committed $200 million for the country and the World Bank $120 million

Reuters
December 17, 2025

COLOMBO: Sri Lanka expects its economy to expand by more than 5% next year, matching this year’s pace and significantly outstripping IMF projections, partly driven by reconstruction efforts following Cyclone Ditwah, a senior minister told Reuters on Wednesday.

The storm hit in late November, killing nearly 650 people and affecting about 10% of Sri Lanka’s 22 million population. It caused major damage to infrastructure, farms, and tea estates, with rebuilding costs estimated at up to $7 billion in a country still recovering from economic collapse in 2022.

The Indian Ocean island has been receiving funds under an IMF bailout programme, while additional emergency assistance has been pledged by global agencies and foreign governments for it to cope with its worst natural disaster since the 2004 tsunami.


FUNDING COMING IN

This month, the Asian Development Bank committed $200 million for the country and the World Bank $120 million. The IMF is expected to approve Sri Lanka’s request for emergency funding of $200 million on Friday, said Anil Jayantha Fernando, the country’s deputy minister of finance and planning.

“So with the quick response, support from agencies and the existing development programmes, I don’t think that (growth) would be really hampered,” he told Reuters.

“Rather, it would increase; maybe new investments come for reconstruction, the repair of these infrastructures and all those things. In a way, even from a technical perspective, it will not slow down, it will further go up.”

He said growth this year would be more than 5%, higher than the central bank’s 4.5% projection, based on numbers in the first three quarters of the year. He expects similar growth next year too. The IMF has predicted 3.5% in 2025 and 3.1% next year.

To repair damaged homes, restore infrastructure such as roads and railways, and rebuild livelihoods, Fernando said the government would divert funds from other areas, utilise tax revenue and seek more international support.

 

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‘SINOPEC DEAL ALMOST FINALISED’

He said parliament is expected to approve 500 billion rupees ($1.6 billion) in supplementary spending, funded partly through the reallocation of ministry budgets, when it convenes on Friday and Saturday.

Additionally, 1.4 trillion rupees ($4.6 billion) have been earmarked for capital expenditure in 2026, partly to support post-cyclone reconstruction efforts.

The government also plans to host a donor conference in mid-January to secure further funding, as damage assessments from the cyclone continue.

Foreign investment will play a key role in the recovery, he said.

Colombo is set to finalise an agreement with Chinese state energy giant Sinopec for a $3.4 billion refinery in the next two months and introduce legislation to spur investment linked to a $1.4 billion China-backed Port City project off the Colombo coast, Fernando said.

“With regard to Sinopec, almost that is finalised,” he said. “So we hope we would be able to sign this agreement and commence this project either at the end of this month or maybe early next year.”

Sinopec did not immediately respond to an email seeking comment.

The planned refinery, approved in 2023, will have the capacity to process 200,000 barrels of crude oil per day and will be located near the Chinese-built and operated Hambantota port in southern Sri Lanka. It faced delays mainly over the company’s long-standing demand to sell more fuel locally, a condition the energy minister has said the government is considering.

 

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Sri Lankan shares closed higher on Monday, helped by gains in information technology stocks.

The CSE All Share index settled up 0.29% at 22,132.33, rising for the fourth straight session.

Colombo Dockyard and Industrial Asphalts (Ceylon) were the top two percentage gainers on the CSE All Share, rising 31% and 25%, respectively.

Trading volume on the CSE All Share index fell to 108.4 million shares from 147.2 million in the previous session.

The equity market’s turnover dropped to 3.71 billion Sri Lankan rupees ($12 million) from 4.10 billion rupees in the previous session, according to exchange data.

Foreign investors were net sellers, offloading stocks worth 292.7 million rupees, while domestic investors were net buyers, purchasing shares worth 3.61 billion rupees, the data showed.

 

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Sri Lanka’s Colombo Consumer Price Index up 2.1% year-on-year in December​

• This is broadly in line with expectations. We expect inflation to be 2.4% in January and hover between 2%-3% for the first half of next year

Reuters
December 31, 2025

Sri Lanka’s Colombo Consumer Price Index rose 2.1% year-on-year in December, after a 2.1% rise in November, the Statistics Department said on Wednesday.

The Colombo Consumer Price Index, a leading indicator for broader national prices, tracks inflation in Colombo, Sri Lanka’s biggest city.

The annual inflation rate in the food category was 3% inDecember, mirroring 3% in November. In the non-food category, consumer prices were up 1.8% year-on-year this month, versus 1.7% in November.


“This is broadly in line with expectations. We expect inflation to be 2.4% in January and hover between 2%-3% for the first half of next year,” said Dimantha Mathew, head of research at First Capital.

Sri Lanka’s inflation was forecast to reach 5.4% at the end of 2026 in the latest International Monetary Fund report, slightly higher than the 5% projection from the country’s central bank.

Inflation may edge up, three analysts said, after the island nation was hit by Cyclone Ditwah at the end of November, which killed over 600 people and caused about $4.1 billion in damage, according to World Bank estimates.

“Inflation may rise faster month-on-month but it will be moderated by deflation seen in early 2025. We expect inflation to end 2026 at 4.9%,” Mathew added.

Helped by a $2.9 billion IMF program, Sri Lanka is recovering from a severe financial crisis triggered by a shortfall of foreign reserves that peaked in 2022.

 

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Sri Lanka seeks Chinese aid to rebuild after deadly cyclone​

• Sri Lanka's request for Chinese assistance came three weeks after India pledged $450 million in humanitarian aid for cyclone recovery

AFP
January 12, 2026

COLOMBO: Sri Lanka asked China to help rebuild key infrastructure damaged by Cyclone Ditwah, which killed at least 641 people and caused extensive damage, the island’s foreign minister said on Monday.

Vijitha Herath said he made the request during talks with his Chinese counterpart Wang Yi, who stopped in Colombo on Monday after visiting Tanzania and Lesotho.

“I particularly requested the assistance of the Chinese government in infrastructure development, including the reconstruction of identified roads, railways, and bridges that were affected,” Herath said in a statement.


He added that Wang had “assured his personal intervention” to assist Sri Lanka’s recovery from the deadly cyclone, which struck in November.

The two sides also discussed advancing cooperation in trade, investment and tourism, Herath said.

There was no immediate comment from the Chinese embassy in Colombo.

Sri Lanka’s request for Chinese assistance came three weeks after India pledged $450 million in humanitarian aid for cyclone recovery.

The cyclone affected more than 10 percent of the country’s 22 million population. The World Bank has estimated that physical damage alone amounted to about $4.1 billion.

Both China and India have been competing for influence in the small but strategically located South Asian nation, which has emerged as a geopolitical hotspot in recent years.

Sri Lanka lies halfway along the main east-west international shipping route and has the only deep-sea ports between Dubai and Singapore.

 

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Sri Lanka cyclone caused $4.1bn damage: World Bank​

• The total damage estimated by the World Bank is equivalent to about 4 percent of Sri Lanka's GDP

AFP

COLOMBO: which struck Sri Lanka last month, caused an estimated $4.1 billion in direct physical damage to buildings, agriculture and critical infrastructure, according to a World Bank report released Monday.

The natural disaster killed more than 640 people, and affected more than 10 percent of Sri Lanka’s population. Floods and landslides caused by the cyclone left extensive damage throughout the South Asian island nation.

The total damage estimated by the World Bank is equivalent to about 4 percent of Sri Lanka’s GDP.

Infrastructure, including roads, bridges, railways and water supply networks, accounted for the largest share of damage, at an estimated $1.735 billion, according to the World Bank’s Global Rapid Post-Disaster Damage Estimation (GRADE) report.

Housing damage was valued at $985 million, accounting for 24 percent of the total damage.

The estimate is limited to direct physical damage and “does not include losses related to income or production, nor the full costs of recovery and reconstruction”.

Buildings such as “schools, health facilities, businesses, and large industrial facilities and factories located along major rivers and creeks, were also heavily impacted, accounting for $562 million in estimated damages,” the World Bank said.

The Sri Lankan government has also secured a World Bank agreement to repurpose $120 million from an ongoing project for disaster recovery spending.

The latest World Bank report comes after the International Monetary Fund (IMF) said Friday that its board had approved $206 million in emergency financing for Sri Lanka, to help in the country’s recovery.

The cyclone struck as the country was emerging from its worst ever economic meltdown in 2022, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.

Following a $2.9 billion bailout from the IMF approved in early 2023, the country’s economy has stabilised.

 

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IMF approves $206mn aid to Sri Lanka after Cyclone Ditwah​

• The natural disaster killed more than 640 people, and affected more than 10 percent of Sri Lanka’s population

AFP

WASHINGTON: The International Monetary Fund said Friday that its board has approved $206 million in emergency financing for Sri Lanka, to help in the country’s recovery from the devastating Cyclone Ditwah.

The natural disaster killed more than 640 people, and affected more than 10 percent of Sri Lanka’s population. Floods and landslides caused by the cyclone left extensive damage throughout the South Asian island nation.

“The disaster has created urgent humanitarian and reconstruction needs, generating significant fiscal pressures and balance-of-payments needs,” IMF deputy managing director Kenji Okamura said in a statement.

The IMF’s emergency aid – which comes under the Washington-based lender’s rapid financing instrument – is meant to help address these pressures, he added.

The announcement comes a day after Sri Lanka’s government unveiled plans for $1.6 billion in additional spending next year to fund cyclone recovery.

The government had also earlier secured a World Bank agreement to repurpose $120 million from an ongoing project for disaster recovery spending.

Sri Lanka forecasts 5% growth in 2026, aided by post-cyclone reconstruction

Separately, it got a $200 million loan from the Asian Development Bank to finance water management, the first such funding since the cyclone.

The IMF said Friday that Sri Lankan authorities are still committed to their economic reform program aided by support of around $3 billion.

A further tranche of this rescue package known as the Extended Fund Facility was coming up when the cyclone hit.

The IMF said it has deferred the fifth review of the package, with a team set to visit Sri Lanka in early 2026 to resume discussions.

It noted this deferment took place due to the time needed to assess the cyclone’s economic impact and examine how an IMF-supported program can best support Sri Lanka’s recovery and reconstruction efforts – while preserving policy priorities.

 

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Sri Lanka central bank holds policy rate steady as IMF review looms​

• The Central Bank of Sri Lanka (CBSL) maintained the overnight policy rate at 7.75%

Reuters
January 28, 2026



COLOMBO: Sri Lanka’s central bank kept its overnight policy rate unchanged on Wednesday, as it awaited the latest review on a $2.9 billion International Monetary Fund programme.

The Central Bank of Sri Lanka (CBSL) maintained the overnight policy rate at 7.75%, as unanimously forecast by a dozen economists in a Reuters poll.

The economists cited stable inflation, healthy credit growth and steady economic expansion as key reasons to hold the rate steady.


CBSL has kept the rate unchanged since May as the South Asian island nation recovers from a 2022 financial crisis that was driven by a severe dollar shortage.

The monetary authority said that the current monetary policy stance will support steering inflation towards the target of 5%.

Inflation was 2.1% at the end of 2025.

As demand in the economy strengthens, core inflation is expected to accelerate further going forward, the central bank added.

An IMF fact-finding mission is currently in Colombo to assess government policies ahead of approving a sixth tranche of the four-year debt bailout programme and is due to wrap up its visit on Wednesday.

Meeting IMF targets is critical to improving Sri Lanka’s credit rating after its default, enabling it to re-enter international financial markets to borrow and repay debts starting in 2028.

Sri Lanka’s tentative recovery from the unprecedented financial crisis was impacted by Cyclone Ditwah, which killed around 650 people and affected nearly 10% of the 22 million population, in late November.

Damage to houses, roads and other critical infrastructure has been estimated at $4.1 billion by the World Bank.

Despite economic activity slowing down after the cyclone, early indicators reflect greater resilience, the central bank said.

 

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Sri Lanka urges Pakistan to reconsider India game boycott​

AFP
February 6, 2026

COLOMBO: Sri Lanka’s cricket board on Thursday asked Pakistan to reconsider its decision to boycott their first-round encounter with arch-rival India in the T20 World Cup co-hosted by the island.

Pakistan decided not to play India on February 15 in Colombo to express solidarity with Bangladesh, who were excluded from the tournament after refusing to play their matches in India. Pakistan and India have not played bilateral cricket for more than a decade and meet only at global or regional tournament events.

Sri Lanka Cricket (SLC) told the Pakistan Cricket Board that a boycott would result in a financial hit and also hurt the island’s tourism industry, which is still recovering from the 2022 economic meltdown.

“Any non-participation will have wide-ranging implications, including substantial financial exposure for SLC and the potential loss of anticipated tourism inflows,” the board said.It recalled that Sri Lanka had toured Pakistan to express solidarity and revive international matches there when other nations stayed away due to security concerns.

“We urge you to take into account the exceptional circumstances, the enduring relationship between our two boards, and the broader interests of the game of cricket,” Sri Lanka Cricket said pleading with Pakistan to play their scheduled match against India.