Executive Summary — Weekly Economic Indicators | 28 August 2026
- Crude oil prices declined: Brent crude fell by US$4.50 per barrel and WTI by US$3.59 during the week ending 28 August, as concerns over potential supply disruptions eased following progress in Iran–Oman discussions.
- Lending rates moved higher: The Weekly Average Weighted Prime Lending Rate increased by 9 basis points to 10.95% during the week.
- Money-market rates also edged up: The Average Weighted Call Money Rate increased to 8.84%, from 8.81% at the end of the previous week.
- Market liquidity remained strong: Total outstanding market liquidity recorded a surplus of Rs.318.13 billion as at 28 August, compared with Rs.278.51 billion a week earlier.
- Stock market weakened marginally: The ASPI declined 0.47% to 21,315.91 points, while the S&P SL20 fell 0.38% to 6,005.34 points during the week.
- Treasury Bill demand remained strong: The Treasury Bill auction was approximately 2.9 times oversubscribed.
- Treasury Bond demand was even stronger: The Treasury Bond auction recorded an oversubscription of approximately 4.7 times.
- Foreign holdings of government securities increased: The rupee value of Treasury Bills and Treasury Bonds held by foreign investors increased by approximately 3.98% during the reporting week.
- Secondary-market activity declined: The total volume of secondary-market transactions in Treasury Bills and Treasury Bonds fell by approximately 34.2% compared with the previous week.
External Sector
- The rupee remained under pressure: The Sri Lankan rupee had depreciated 5.7% against the US dollar year-to-date as at 28 August 2026.
- Remittances strengthened significantly: Workers’ remittances increased to US$261.3 million in July 2026, compared with US$210.0 million in July 2025.
- Cumulative remittances reached US$1.724 billion: Workers’ remittances during January–July 2026 rose from US$1.323 billion during the corresponding period of 2025.
- Tourist arrivals remained broadly stable: Sri Lanka recorded 196,845 tourist arrivals in July 2026, compared with 200,244 in July 2025.
- January–July tourist arrivals reached 1.343 million, compared with 1.368 million during the corresponding period of 2025.
- Tourism earnings declined: Earnings from tourism during January–July 2026 stood at US$571.6 million, compared with US$605.0 million during the same period of 2025.
- Official reserves stood at US$6.59 billion: Official reserve assets at the end of July 2026 amounted to approximately US$6.591 billion, including US$6.359 billion in foreign-currency reserves.
Trade
- Exports increased: Merchandise exports during January–June 2026 amounted to approximately US$6.90 billion, compared with US$6.49 billion in the same period of 2025.
- Imports also increased: Merchandise imports reached approximately US$9.76 billion during January–June 2026, compared with US$9.76 billion? [The report’s table should be read carefully here; the corresponding reported trade figures indicate imports remained substantially above exports.]
- The merchandise trade deficit remained significant, reflecting the continued gap between export and import values.
Commodity Prices
- Global commodity prices remained an important factor for Sri Lanka, particularly crude oil, rice, sugar and wheat.
- The report recorded June 2026 average commodity prices of approximately:
- Rice: US$962.57 per metric tonne
- Sugar: US$521.80 per metric tonne
- Wheat: US$559.77 per metric tonne
- Crude oil: US$79.60 per barrel
The Capitalist — Key Takeaway
- Sri Lanka’s latest indicators show continued financial and external-sector resilience, supported by strong liquidity, rising remittances, higher foreign-exchange reserves and improved export earnings.
- However, the 5.7% year-to-date depreciation of the rupee remains a major pressure point.
- Higher lending rates could increase financing costs for businesses and consumers.
- Strong demand at Treasury auctions indicates continued investor appetite for government securities.
- The economy is therefore showing a mixed picture: improving external buffers and strong liquidity, alongside currency depreciation and rising borrowing costs.
