Business
External sector performance summary April 2026
The impact of the war in the Middle East was reflected in the performance of the External Sector in April 2026 as well. The external current account recorded a deficit in April 2026 compared to the surplus recorded during January through March 2026. This was mainly driven by the widened trade deficit, a moderation in the services surplus, and higher primary income account deficit, despite an increase in workers’ remittances compared to a year earlier. Consequently, the external current account recorded a marginal deficit during January to April 2026.
The merchandise trade deficit widened in April 2026, reflecting stronger growth in imports relative to exports. Further, during January–April 2026, the trade deficit widened to US$ 3.7 billion, compared to US$ 2.3 billion in the corresponding period of 2025.
Expenditure on fuel imports increased notably by 149.9% on a year-on-year basis to US$ 886 million in April 2026, driven by the surge in fuel prices in the global markets amid the ongoing conflict in the Middle East and higher import volumes.
Expenditure on motor vehicle imports, including both personal and commercial vehicles, amounted to US$ 208 million in April 2026, bringing total expenditure on motor vehicle imports to US$ 821 million during January-April 2026.
The terms of trade deteriorated on a year-on-year basis in April 2026, as the increase in import prices exceeded the increase in export prices. Meanwhile, the terms of trade also deteriorated during January–April 2026 compared to the corresponding period of the previous year.
The surplus in the services account declined by 37.8%, year-on-year, to US$ 229 million in April 2026, primarily due to the reduction in tourist earnings. The cumulative surplus also contracted by 24.3% during January to April 2026 compared to the corresponding period of 2025.
Tourist arrivals declined for the second consecutive month in April 2026 to 135,643, recording a year-on-year contraction of 22.3%, owing to the impact of Middle East conflict. Tourist earnings were estimated at US$ 157 million in April 2026, reflecting a year-on-year decline of 38.8%, and the cumulative earnings during first four months of 2026 declined by 19.4% amounting to US$ 1,111 million compared to the corresponding period of the previous year.
Workers’ remittances, amounting to US$ 768 million in April 2026, continued to sustain the positive momentum observed in recent months. On a cumulative basis, workers’ remittances during the first four months of the year recorded a year-on-year growth of 24.5% to US$ 3,063 million.
Foreign investments in the government securities market recorded a marginal net inflow of US$ 2 million, while foreign investments in the Colombo Stock Exchange (CSE), including both primary and secondary market transactions, recorded a net outflow of US$ 16 million during the month of April 2026.
Gross official reserves (GOR), including the swap facility with the People’s Bank of China (PBOC), stood around US$ 6.8 billion by end April 2026, amidst sizeable external debt service payments and net foreign exchange sales by the Central Bank.
As of end May 2026, the Sri Lanka rupee had depreciated by 5.4% against the US dollar on a year-to-date basis, reflecting heightened external sector pressures following the effects of the escalation of the Middle East conflict since late February 2026. This depreciation is in line with the currency depreciation trend that was observed in peer economies.
Meanwhile, the International Monetary Fund (IMF) Executive Board completed the combined Fifth and Sixth Reviews of the Extended Fund Facility for Sri Lanka on 27 May 2026, providing Sri Lanka with immediate access to SDR 508 million (about US$ 695 million) to support economic policies and reforms.
(CBSL)
Business
Ceylinco Life agent among three global finalists for award
Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.
The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.
Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.
The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.
The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.
Business
CEAT Kelani retains AA+ rating for sixth year
CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.
The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.
Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.
The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.
Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.
The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.
CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.
Business
Commercial Bank leads nationwide aquatic clean-up drive
Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.
Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.
The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.
Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.
The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.
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