Prepared by·SRP Research
Designed by·SRP Studio
Editor·Aaron Russell-Davison — Managing Director, SRP International
Period·August 2026
Executive Summary
Equity Markets
The Colombo Stock Exchange recorded a marginal rise in August 2026, with the ASPI increasing by 0.99% MoM to 21,338.69 and the S&P SL20 gaining 1.17% MoM to 6,009.68. The improvement reflected a stable market following July's correction. Volumes were relatively low, and there were limited domestic policy announcements to drive sentiment. Foreign participation in the CSE is lower than its previous trend levels.
Inflation
Inflationary pressures continued to build in August, with CCPI headline inflation rising to 8.0% YoY from 7.3% YoY in July. The increase was mainly driven by food prices, with food inflation accelerating to 8.5% YoY, while non-food inflation remained broadly stable at 7.7% YoY. This heightened level of inflation is starting to raise concerns, as it diminishes the purchasing power of domestic consumers and is likely to spill into increased wage/salary demands. The CBSL will likely be pushed to adopt a more hawkish interest rate position, which is not beneficial to private credit growth, the main driver of the Sri Lankan economic recovery.
Exchange Rates
The Sri Lankan rupee strengthened against the US dollar in August, with the USD/LKR exchange rate appreciating by approximately 2.39% MoM to close at LKR 328.01/USD, compared with LKR 336.05/USD at the end of July. The appreciation was supported by improved foreign currency inflows, including tourism receipts and export earnings, alongside reduced pressure from import demand.
Crude Oil Prices
Crude oil prices remain elevated in August, continuing the increases seen in July. Brent crude increased by approximately 2.9% MoM to trade near USD 90.45/bbl, compared with around USD 87.86/bbl at the end of July. The reasons for this increase remain unchanged; the disruption of global supply from the Middle East remains an issue to be fully resolved.
Tourist Arrivals
Tourism to Sri Lanka recorded 191,704 arrivals, representing a decline of approximately 3.4% YoY compared with 198,235 arrivals in August 2025. Cumulative tourist arrivals for January–August 2026 reached 1,535,122, compared with 1,566,523 during the same period last year, reflecting a marginal decline of approximately 2.0% YoY. All things considered, this is not a bad performance, but below previous expectations.
Market Statistics
| Month Ending | August-2026 | July-2026 | Change (%) |
|---|
| All Share Price Index | 21,338.69 | 21,129.21 | 0.99% |
| S&P 20 Index | 6,009.68 | 5,939.98 | 1.17% |
| Consumer Services (Hotels) | 511.51 | 516.09 | -0.89% |
| Real Estates | 3,466.82 | 3,367.05 | 2.96% |
| Capital Goods (Industrial) | 2,282.23 | 2,270.35 | 0.52% |
| Food Bev & Tob (Plantations and Other) | 2,290.84 | 2,284.40 | 0.28% |
| Materials | 3,033.97 | 2,994.18 | 1.33% |
| Banks | 1,708.16 | 1,683.74 | 1.45% |
| Telecommunication Services | 3,658.59 | 3,491.22 | 4.79% |
| Market Capitalisation (SLRs. Bn) | 7,730.83 | 8,040.43 | -3.85% |
International Markets
| Market | August-2026 | July-2026 | Change (%) |
|---|
| STI Index (Singapore) | 5,755.36 | 5,628.50 | 2.25% |
| DAX (Germany) | 26,258.11 | 25,629.24 | 2.45% |
| Nikkei (Japan) | 66,311.93 | 64,362.02 | 3.03% |
| FTSE 100 (UK) | 10,824.26 | 10,868.05 | -0.40% |
| Dow Industrial (US) | 53,185.90 | 52,485.03 | 1.34% |
Exchange Rates
| Currency | August-2026 | July-2026 | Change (%) |
|---|
| Euro | 380.23 | 386.89 | -1.72% |
| SNG$ | 257.63 | 261.76 | -1.58% |
| AUD | 235.06 | 236.01 | -0.40% |
| GBP | 444.30 | 452.15 | -1.74% |
| US$ | 328.01 | 336.05 | -2.39% |
Quoted as LKR per unit of foreign currency; a higher figure indicates depreciation of the rupee.
Commodity Prices
| Commodity | August-2026 | July-2026 | June-2026 |
|---|
| Brent Crude $/bbl | 90.45 | 87.86 | 72.75 |
| Gold $/Troy oz | 4,440.70 | 4,044.00 | 4,005.60 |
| Tea $/Kg | 2.91 | 2.98 | 2.97 |
| Rubber, TSR20 $/Kg | 2.24 | 2.14 | 2.25 |
Interest Rates
| Rate type | August-2026 | July-2026 | Change (%) |
|---|
| AWPR | 10.95 | 10.67 | 2.62% |
| AWDR | — | — | — |
| Treasury Bill Yield | | | |
| 3 Months | 9.15 | 9.87 | -7.29% |
| 6 Months | 9.49 | 10.13 | -6.32% |
| 12 Months | 9.85 | 10.15 | -2.96% |
| Treasury Bond Yield | | | |
| 5 Years | 11.08 | 11.72 | -5.46% |
| 10 Years | 11.90 | 12.21 | -2.54% |
AWDR = Commercial Bank Average Weighted Deposit Rate. AWPR = Commercial Bank Average Weighted Prime Lending Rate.
Inflation (Headline)
| Inflation | August-2026 | July-2026 | Change (%) |
|---|
| Colombo Consumer Price Index (CCPI) | 8.00 | 7.30 | 9.59% |
Daily Indices
| Day | ASPI | S&P SL 20 |
|---|
| Aug 3, 2026 | 21,121.78 | 5,940.29 |
| Aug 4, 2026 | 21,101.87 | 5,936.94 |
| Aug 5, 2026 | 21,215.84 | 5,945.09 |
| Aug 6, 2026 | 21,269.67 | 5,971.50 |
| Aug 7, 2026 | 21,370.09 | 5,988.16 |
| Aug 10, 2026 | 21,417.47 | 5,985.49 |
| Aug 11, 2026 | 21,403.05 | 5,983.14 |
| Aug 12, 2026 | 21,436.18 | 6,000.24 |
| Aug 13, 2026 | 21,539.00 | 6,032.09 |
| Aug 14, 2026 | 21,644.01 | 6,065.72 |
| Aug 17, 2026 | 21,616.88 | 6,084.54 |
| Aug 18, 2026 | 21,479.07 | 6,040.91 |
| Aug 19, 2026 | 21,428.72 | 6,020.38 |
| Aug 20, 2026 | 21,429.65 | 6,019.25 |
| Aug 21, 2026 | 21,416.61 | 6,028.09 |
| Aug 24, 2026 | 21,362.18 | 6,009.40 |
| Aug 25, 2026 | 21,300.90 | 5,994.81 |
| Aug 28, 2026 | 21,322.86 | 6,005.34 |
| Aug 31, 2026 | 21,338.84 | 6,009.68 |
Volume & Turnover
| Day | Turnover | Volume |
|---|
| Aug 3, 2026 | 1,411,217,357.70 | 47,697,634.00 |
| Aug 4, 2026 | 2,955,779,829.60 | 97,100,905.00 |
| Aug 5, 2026 | 8,475,978,096.05 | 82,298,905.00 |
| Aug 6, 2026 | 12,235,070,974.70 | 231,088,535.00 |
| Aug 7, 2026 | 1,891,557,057.45 | 122,279,471.00 |
| Aug 10, 2026 | 3,811,227,287.70 | 123,880,654.00 |
| Aug 11, 2026 | 1,522,133,983.40 | 47,133,518.00 |
| Aug 12, 2026 | 2,055,290,337.20 | 53,684,002.00 |
| Aug 13, 2026 | 2,777,549,262.50 | 76,743,057.00 |
| Aug 14, 2026 | 2,241,287,088.65 | 75,965,385.00 |
| Aug 17, 2026 | 1,890,844,466.90 | 45,509,629.00 |
| Aug 18, 2026 | 2,036,912,115.55 | 80,220,886.00 |
| Aug 19, 2026 | 1,539,667,903.75 | 43,874,669.00 |
| Aug 20, 2026 | 1,502,350,485.40 | 40,815,013.00 |
| Aug 21, 2026 | 1,219,223,428.05 | 50,281,942.00 |
| Aug 24, 2026 | 16,851,826,938.65 | 67,080,269.00 |
| Aug 25, 2026 | 796,919,881.15 | 27,219,526.00 |
| Aug 28, 2026 | 2,203,959,283.65 | 66,452,931.00 |
| Aug 31, 2026 | 1,014,976,826.95 | 50,614,182.00 |
Tea Auction Prices (USD)
| Month | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|
| Jan | 2.73 | 2.78 | 2.66 | 2.77 | 2.86 | 2.68 | 2.51 | 2.54 |
| Feb | 2.70 | 2.69 | 2.71 | 2.70 | 2.79 | 2.56 | 2.36 | 2.38 |
| Mar | 2.69 | 2.69 | 2.69 | 2.69 | 2.61 | 2.43 | 2.13 | 2.38 |
| April | 2.83 | 2.91 | 3.03 | 2.96 | 3.24 | 2.67 | 2.36 | 2.65 |
| May | 3.02 | 3.02 | 3.20 | 2.71 | 2.99 | 2.71 | 2.51 | 2.73 |
| June | 2.97 | 2.99 | 3.22 | 2.69 | 2.96 | 2.70 | 2.84 | 2.56 |
| July | 2.98 | 3.02 | 3.30 | 2.47 | 3.31 | 2.65 | 3.04 | 2.58 |
| Aug | 2.91 | 3.04 | 3.22 | 2.83 | 3.37 | 2.72 | 3.15 | 2.63 |
| Sep | | 2.94 | 3.27 | 2.85 | 3.33 | 2.73 | 3.08 | 2.54 |
| Oct | | 3.01 | 3.15 | 2.76 | 3.15 | 2.78 | 3.00 | 2.58 |
| Nov | | 2.99 | 3.09 | 2.74 | 3.05 | 2.83 | 2.78 | 2.61 |
| Dec | | 2.88 | 2.96 | 2.71 | 2.95 | 2.82 | 2.65 | 2.57 |
Tourist Arrivals
| Tourist Arrivals | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|
| January | 277,327 | 252,761 | 208,253 | 102,545 | 82,327 | 1,682 | 228,434 |
| February | 279,328 | 240,217 | 218,350 | 107,639 | 96,507 | 3,366 | 207,507 |
| March | 183,979 | 229,298 | 209,181 | 125,495 | 106,500 | 4,581 | 71,370 |
| April | 135,643 | 174,608 | 148,867 | 105,498 | 62,980 | 4,168 | 0 |
| May | 145,745 | 132,919 | 112,128 | 83,309 | 30,207 | 1,497 | 0 |
| June | 124,551 | 138,241 | 113,470 | 100,388 | 32,856 | 1,614 | 0 |
| July | 196,845 | 200,244 | 187,810 | 143,039 | 47,293 | 2,429 | 0 |
| August | 191,704 | 198,235 | 164,609 | 136,405 | 37,760 | 5,040 | 0 |
| September | | 158,971 | 122,140 | 111,938 | 29,802 | 13,547 | 0 |
| October | | 165,193 | 135,907 | 109,199 | 42,026 | 22,771 | 0 |
| November | | 212,906 | 184,158 | 151,496 | 59,759 | 44,294 | 0 |
| December | | 258,928 | 248,592 | 210,352 | 91,961 | 89,506 | 393 |
Cumulative arrivals for January–August 2026 reached 1,535,122, compared with 1,566,523 in the same period of 2025 — a decline of approximately 2.0% YoY.
Primary Deposit & Lending Rates
| Period (Year Month) | AWDR | AWPR |
|---|
| Aug 2026 | — | 10.95 |
| Jul 2026 | — | 10.67 |
| Jun 2026 | 7.20 | 10.39 |
| May 2026 | 6.95 | 9.90 |
| Apr 2026 | 6.86 | 9.57 |
| Mar 2026 | 6.83 | 9.28 |
| Feb 2026 | 6.83 | 9.35 |
| Jan 2026 | 6.81 | 8.88 |
| Dec 2025 | 6.78 | 9.07 |
| Nov 2025 | 6.77 | 8.64 |
| Oct 2025 | 6.79 | 8.31 |
| Sep 2025 | 6.80 | 8.10 |
CCPI Year on Year (%)
| Month (Year Month) | Headline | Food | Non Food |
|---|
| Aug 2026 | 8.00 | 8.50 | 7.70 |
| Jul 2026 | 7.30 | 6.30 | 7.80 |
| Jun 2026 | 6.80 | 3.60 | 8.40 |
| May 2026 | 5.50 | 0.90 | 7.80 |
| Apr 2026 | 5.40 | 2.80 | 6.80 |
| Mar 2026 | 2.20 | 0.70 | 2.90 |
| Feb 2026 | 1.60 | 0.20 | 2.30 |
| Jan 2026 | 2.30 | 3.30 | 1.80 |
| Dec 2025 | 2.10 | 3.00 | 1.80 |
| Nov 2025 | 2.10 | 3.00 | 1.70 |
| Oct 2025 | 2.10 | 3.50 | 1.40 |
| Sep 2025 | 1.50 | 2.90 | 0.70 |
| Aug 2025 | 1.20 | 2.00 | 0.80 |
External Sector
Values are in USD million.
| Month (Year Month) | Official Reserves | Workers' Remittances | Earnings from Tourism |
|---|
| Jul 2026 | 6,600.00 | 777.60 | 285.50 |
| Jun 2026 | 6,458.00 | 695.00 | 151.10 |
| May 2026 | 6,881.00 | 847.00 | 155.70 |
| Apr 2026 | 6,766.00 | 767.90 | 157.10 |
| Mar 2026 | 7,026.00 | 814.80 | 223.70 |
| Feb 2026 | 7,270.00 | 729.00 | 352.00 |
| Jan 2026 | 6,832.00 | 751.10 | 378.30 |
| Dec 2025 | 6,825.00 | 879.10 | 308.60 |
| Nov 2025 | 6,034.00 | 673.40 | 251.60 |
| Oct 2025 | 6,216.00 | 712.00 | 186.10 |
| Sep 2025 | 6,244.00 | 695.70 | 182.90 |
| Aug 2025 | 6,178.00 | 680.80 | 258.90 |
| Jul 2025 | 6,147.00 | 697.30 | 318.50 |
| Month (Year Month) | Exports | Imports | Fuel Imports | Import (Non Fuel) |
|---|
| Jul 2026 | 1,233.40 | 2,251.00 | 453.10 | 1,797.90 |
| Jun 2026 | 1,143.80 | 1,972.30 | 464.70 | 1,507.60 |
| May 2026 | 1,224.30 | 2,192.10 | 536.00 | 1,656.10 |
| Apr 2026 | 1,074.10 | 2,456.70 | 886.20 | 1,570.50 |
| Mar 2026 | 1,254.30 | 2,134.10 | 630.10 | 1,504.00 |
| Feb 2026 | 1,057.80 | 1,833.80 | 398.00 | 1,435.80 |
| Jan 2026 | 1,148.70 | 1,803.30 | 253.50 | 1,549.80 |
| Dec 2025 | 1,158.00 | 2,155.20 | 390.10 | 1,765.10 |
| Nov 2025 | 1,047.80 | 1,778.50 | 333.30 | 1,445.20 |
| Oct 2025 | 1,149.40 | 2,156.80 | 357.80 | 1,799.00 |
| Sep 2025 | 1,138.50 | 2,048.60 | 440.70 | 1,607.90 |
| Aug 2025 | 1,282.30 | 1,696.50 | 255.20 | 1,441.30 |
