Stock market trading yesterday was positive and indicated an incipient bullish trend but due to the festive season the market did not perform well eventually.

Amid those developments both indices moved upwards. The All Share Price Index went up by 104.3 points while S and P SL20 rose by 38.5 points. Turnover stood at Rs 792 million with no crossings.

In the retail market top seven companies that have mainly contributed to the turnover were; Commercial Credit Rs 58.7 million (878,000 shares traded), HNB Rs 47.6 million (158,000 shares traded), Singer (Sri Lanka) Rs 40.5 million (1.15 million shares traded), VallibelOne Rs 32.7 million (518,000 shares traded), CTC Rs 28.9 million (21000 shares traded), Central Finance Rs 26.7 million (138,000 shares traded) and JKH Rs 26 million (1.2 million shares traded). During the day 30.3 million share volumes changed hands in 11000 transactions.

It is said the banking and finance sector was the main contributor to the turnover, especially Central Finance and HNB, while the manufacturing sector was the second largest contributor to the turnover, especially JKH.

Yesterday, the rupee was quoted at Rs 298.00/50 to the US dollar in the spot market , from Rs 298.10/30 Friday before the holiday, dealers said, while bond yields were broadly steady.

A bond maturing on 15.02.2028 was quoted at 10.00/05 percent.

A bond maturing on 01.07.2028 was quoted at 10.10/20 percent.

A bond maturing on 15.10.2028 was quoted at 10.20/30 percent, down from 10.25/30 percent.

A bond maturing on 15.12.2029 was quoted at 10.56/62 percent, down from 10.60/65 percent.

Stocks were up 0.58 percent.

An auction of Rs 87,500 million of Treasury bills was ongoing.

The Central Bank’s telegraphic transfer rates for euro buying was 331.3321 and selling 344.6445; yen buying was 2.0510 and selling was 2.1320, US dollar was 293.9185 and 302.6158.

By Hiran H Senewiratne

An International Monetary Fund (IMF) team led by Evan Papageorgiou visited Colombo from April 3 to 11, 2025. After constructive discussions in Colombo, Mr. Papageorgiou issued the following statement:

“Sri Lanka’s ambitious reform agenda supported by the IMF Extended Fund Facility (EFF) continues to deliver commendable outcomes. The post-crisis growth rebound of 5 percent in 2024 is impressive. Inflation declined considerably in recent quarters and has fallen to ‑2.6 percent at end-March 2025. Gross official reserves increased to US$6.5 billion at end-March 2025 with sizeable foreign exchange purchases by the central bank. Substantial fiscal reforms have strengthened public finances.

“The recent external shock and evolving developments are creating uncertainty for the Sri Lankan economy, which is still recovering from its own economic crisis. More time is needed to assess the impact of the global shock and how its implications for Sri Lanka can be addressed within the contours of its IMF-supported program.

“The government’s sustained commitment to program objectives is ensuring policy continuity and program implementation remains strong. Going forward, sustaining the reform momentum is critical to safeguard the hard-won gains of the program and put the economy on a path toward lasting macroeconomic stability and higher inclusive growth.

“Against increased global uncertainty, sustained revenue mobilization efforts and prudent budget execution in line with Budget 2025 are critical to preserve the limited fiscal space. Boosting tax compliance, including by reinstating an efficient and timely VAT refund mechanism, will help contribute to revenue gains without resorting to additional tax policy measures. Avoiding new tax exemptions will help reduce fiscal revenue leakages, corruption risks and build much needed fiscal buffers, including for social spending to support Sri Lanka’s most vulnerable. Restoring cost recovery in electricity pricing will help minimize fiscal risks arising from the electricity state-owned enterprise.

“The government has an important responsibility to protect the poor and vulnerable at this uncertain time. It is important to redouble efforts to improve targeting, adequacy, and coverage of social safety nets. Fiscal support needs to be well-targeted, time-bound, and within the existing budget envelope.

“While inflation remains low, continued monitoring is warranted to ensure sustained price stability and support macroeconomic stability. Against ongoing global uncertainty, it remains important to continue rebuilding external buffers through reserves accumulation.

“Discussions are ongoing, and the authorities are encouraged to continue to make progress on restoring cost-recovery electricity pricing, strengthening the tax exemptions framework, and other important structural reforms.

“The IMF team held meetings with His Excellency President and Finance Minister Anura Kumara Dissanayake, Honorable Prime Minister Dr. Harini Amarasuriya ; Honorable Labor Minister and Deputy Minister of Economic Development Prof. Anil Jayantha Fernando, Honorable Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, Senior Economic Advisor to the President Duminda Hulangamuwa, and other senior government and CBSL officials. The team also met with parliamentarians, representatives from the private sector, civil society organizations, and development partners.

“We would like to thank the authorities for the excellent collaboration during the mission. Discussions are continuing with the goal of reaching staff-level agreement in the near term to pave the way for the timely completion of the fourth review. We reaffirm our commitment to support Sri Lanka at this uncertain time.”

The Commercial Bank of Ceylon has transformed its iconic ‘Foreign Branch’ into the ‘Corporate Branch,’ reaffirming its commitment to delivering dedicated, comprehensive financial solutions to corporate and trade customers.

The Bank said this transformation represents a new milestone in its illustrious journey, and resonates with the rich commercial heritage of Colombo, a city that has long served as a vital trading hub in the region.

Strategically located at the Bank’s Head Office at Commercial House, 21, Sir Razeek Fareed Mawatha (Bristol Street), Colombo 1, this rebranded Corporate Branch stands as a first of its kind in Sri Lanka —a premier financial hub tailored exclusively to the needs of corporate customers, the Bank said. The transformation aligns with the Bank’s vision of providing unparalleled service excellence, bespoke financial solutions, and fostering long-term business partnerships.

Commenting on this strategic initiative, Commercial Bank’s Managing Director/CEO Sanath Manatunge stated: “It is our aspiration that just as the historic Delft Gateway, at which our Head Office is located, once opened the path to the Dutch Fort, our Corporate Branch will chart a new era of enduring and prosperous business collaborations, that will extend beyond Sri Lanka’s shores.”