Prepared by·SRP Research
Designed by·SRP Studio
Editor·Aaron Russell-Davison — Managing Director, SRP International
Period·February 2026
Executive Summary
Equity Markets
February 2026 marked a shift in market dynamics, with the bourse transitioning from the record-setting momentum observed in January to a phase of consolidation and defensive repositioning. The All Share Price Index (ASPI) declined by 0.33% month-on-month to close at 23,734.06, while the S&P SL20 Index edged lower by 0.08% to settle at 6,635.90.
Inflation
Sri Lanka's headline inflation eased to 1.6% YoY in February 2026, driven by a sharp slowdown in food inflation to 0.2% YoY, primarily due to lower vegetable prices. However, Non-Food inflation accelerated to 2.3% YoY, indicating emerging underlying price pressures. While Middle East tensions pose upside risks to energy and import costs, the near-term inflation outlook is expected to be influenced mainly by recovering domestic demand and anticipated electricity tariff revisions, which could place upward pressure on prices.
Exchange Rates
February 2026 was characterized by broad stability in the LKR against major reserve currencies, with modest appreciation against the USD (0.06%), GBP (1.98%) and EUR (1.01%), while depreciating slightly against the AUD (1.76%) and SGD (0.19%). The contained volatility indicates relatively balanced foreign exchange market conditions during the month.
Crude Oil Prices
Brent crude prices saw an increase of 5.12% month-on-month in January 2026, reaching approximately USD 72.88 per barrel. The primary driver of current oil price increases is Middle East instability. Iran has launched strikes across the region in response to ongoing attacks by the US and allies, creating supply risk concerns. The potential closure of the Strait of Hormuz, a critical route for nearly a third of the world's seaborne oil, poses a major threat to the global energy supply and is causing significant market anxiety.
Tourist Arrivals
Sri Lanka registered 279,328 tourist arrivals in February 2026, representing the highest monthly inflow recorded in a single calendar month to date. The figure reflects a 16.28% year-on-year increase compared to February 2025, underscoring continued momentum in the tourism sector. Notably, the highest single-day arrival was recorded on 12 February 2026, with 12,731 tourists entering the country.
Market Statistics
| Month Ending | February-2026 | January-2026 | Change (%) |
|---|
| All Share Price Index | 23,734.06 | 23,812.31 | -0.33% |
| S&P 20 Index | 6,635.97 | 6,641.15 | -0.08% |
| Consumer Services (Hotels) | 636.77 | 645.11 | -1.29% |
| Real Estates | 3,991.85 | 3,586.22 | 11.31% |
| Capital Goods (Industrial) | 2,565.28 | 2,597.90 | -1.26% |
| Food Bev & Tob (Plantations and Other) | 2,362.73 | 2,399.24 | -1.52% |
| Materials | 3,257.34 | 3,319.77 | -1.88% |
| Banks | 1,952.38 | 1,937.14 | 0.79% |
| Telecommunication Services | 2,837.44 | 2,774.50 | 2.27% |
| Market Capitalisation (SLRs. Bn) | 8,425.24 | 8,498.37 | -0.86% |
International Markets
| Market | February-2026 | January-2026 | Change (%) |
|---|
| STI Index (Singapore) | 4,995.07 | 4,905.13 | 1.83% |
| DAX (Germany) | 25,284.26 | 24,538.81 | 3.04% |
| Nikkei (Japan) | 58,850.27 | 53,322.85 | 10.37% |
| FTSE 100 (UK) | 10,910.55 | 10,223.54 | 6.72% |
| Dow Industrial (US) | 48,977.92 | 48,892.47 | 0.17% |
Exchange Rates
| Currency | February-2026 | January-2026 | Change (%) |
|---|
| Euro | 364.86 | 368.58 | -1.01% |
| SNG$ | 244.61 | 244.14 | 0.19% |
| AUD | 219.98 | 216.19 | 1.76% |
| GBP | 417.04 | 425.47 | -1.98% |
| US$ | 309.31 | 309.50 | -0.06% |
Quoted as LKR per unit of foreign currency; a higher figure indicates depreciation of the rupee.
Commodity Prices
| Commodity | February-2026 | January-2026 | December-2025 |
|---|
| Brent Crude $/bbl | 72.88 | 69.33 | 61.01 |
| Gold $/Troy oz | 5,275.30 | 4,895.20 | 4,318.20 |
| Tea $/Kg | 2.70 | 2.73 | 2.88 |
| Rubber, TSR20 $/Kg | 1.93 | 1.84 | 1.74 |
Interest Rates
| Rate type | February-2026 | January-2026 | Change (%) |
|---|
| AWPR | 9.35 | 8.88 | 5.29% |
| AWDR | — | 6.81 | — |
| Treasury Bill Yield | | | |
| 3 Months | 7.60 | 7.72 | -1.55% |
| 6 Months | 7.89 | 8.07 | -2.23% |
| 12 Months | 8.11 | 8.20 | -1.10% |
| Treasury Bond Yield | | | |
| 5 Years | 9.72 | 9.82 | -1.02% |
| 10 Years | 10.76 | 10.84 | -0.74% |
AWDR = Commercial Bank Average Weighted Deposit Rate. AWPR = Commercial Bank Average Weighted Prime Lending Rate.
Inflation (Headline)
| Inflation | February-2026 | January-2026 | Change (%) |
|---|
| Colombo Consumer Price Index (CCPI) | 1.60 | 2.30 | -30.43% |
Daily Indices
| Day | ASPI | S&P SL 20 |
|---|
| Feb 2, 2026 | 23,710.66 | 6,597.20 |
| Feb 3, 2026 | 23,764.80 | 6,597.34 |
| Feb 5, 2026 | 23,798.17 | 6,602.81 |
| Feb 6, 2026 | 23,801.96 | 6,614.72 |
| Feb 9, 2026 | 23,774.13 | 6,608.68 |
| Feb 10, 2026 | 23,656.68 | 6,605.41 |
| Feb 11, 2026 | 23,653.75 | 6,611.52 |
| Feb 12, 2026 | 23,667.18 | 6,599.52 |
| Feb 13, 2026 | 23,735.73 | 6,618.73 |
| Feb 16, 2026 | 23,900.11 | 6,710.33 |
| Feb 17, 2026 | 23,898.42 | 6,708.71 |
| Feb 18, 2026 | 23,934.24 | 6,750.50 |
| Feb 19, 2026 | 23,849.41 | 6,743.19 |
| Feb 20, 2026 | 23,797.94 | 6,721.47 |
| Feb 23, 2026 | 23,819.21 | 6,728.71 |
| Feb 24, 2026 | 23,722.82 | 6,681.12 |
| Feb 25, 2026 | 23,740.98 | 6,685.27 |
| Feb 26, 2026 | 23,783.24 | 6,710.17 |
| Feb 27, 2026 | 23,773.02 | 6,635.97 |
Volume & Turnover
| Day | Turnover | Volume |
|---|
| Feb 2, 2026 | 5,164,529,163.45 | 153,579,814.00 |
| Feb 3, 2026 | 8,244,707,616.40 | 276,899,680.00 |
| Feb 5, 2026 | 11,114,094,798.35 | 441,234,868.00 |
| Feb 6, 2026 | 9,091,026,811.10 | 311,094,116.00 |
| Feb 9, 2026 | 6,313,135,234.30 | 351,083,235.00 |
| Feb 10, 2026 | 3,546,243,115.80 | 158,174,203.00 |
| Feb 11, 2026 | 3,350,145,088.00 | 170,873,042.00 |
| Feb 12, 2026 | 4,843,531,175.25 | 224,202,965.00 |
| Feb 13, 2026 | 8,510,844,047.90 | 191,340,730.00 |
| Feb 16, 2026 | 5,634,645,529.75 | 243,768,003.00 |
| Feb 17, 2026 | 4,234,471,865.30 | 160,831,232.00 |
| Feb 18, 2026 | 5,663,185,912.35 | 289,228,584.00 |
| Feb 19, 2026 | 4,913,836,903.00 | 275,557,266.00 |
| Feb 20, 2026 | 3,888,013,791.85 | 138,834,460.00 |
| Feb 23, 2026 | 2,562,067,592.20 | 97,418,627.00 |
| Feb 24, 2026 | 3,687,817,585.85 | 152,472,678.00 |
| Feb 25, 2026 | 4,020,890,486.30 | 133,113,041.00 |
| Feb 26, 2026 | 4,910,512,856.00 | 195,863,335.00 |
| Feb 27, 2026 | 7,012,944,178.30 | 369,250,763.00 |
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 | 2.61 | 2.43 | 2.13 | 2.38 |
| April | | 2.91 | 3.03 | 2.96 | 3.24 | 2.67 | 2.36 | 2.65 |
| May | | 3.02 | 3.20 | 2.71 | 2.99 | 2.71 | 2.51 | 2.73 |
| June | | 2.99 | 3.22 | 2.69 | 2.96 | 2.70 | 2.84 | 2.56 |
| July | | 3.02 | 3.30 | 2.47 | 3.31 | 2.65 | 3.04 | 2.58 |
| Aug | | 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 | | 229,298 | 209,181 | 125,495 | 106,500 | 4,581 | 71,370 |
| April | | 174,608 | 148,867 | 105,498 | 62,980 | 4,168 | 0 |
| May | | 132,919 | 112,128 | 83,309 | 30,207 | 1,497 | 0 |
| June | | 138,241 | 113,470 | 100,388 | 32,856 | 1,614 | 0 |
| July | | 200,244 | 187,810 | 143,039 | 47,293 | 2,429 | 0 |
| August | | 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 |
February 2026 was the highest monthly tourist inflow on record — a 16.28% YoY increase — with the highest single-day arrival (12,731) recorded on 12 February 2026.
Primary Deposit & Lending Rates
| Period (Year Month) | AWDR | AWPR |
|---|
| Feb 2026 | — | 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 |
| Aug 2025 | 6.82 | 7.97 |
| Jul 2025 | 6.88 | 8.07 |
| Jun 2025 | 6.93 | 8.11 |
| May 2025 | 6.98 | 8.35 |
| Apr 2025 | 7.08 | 8.36 |
| Mar 2025 | 7.15 | 8.43 |
CCPI Year on Year (%)
| Month (Year Month) | Headline | Food | Non Food |
|---|
| 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 |
| Jul 2025 | -0.30 | 1.50 | -1.20 |
| Jun 2025 | -0.60 | 4.30 | -2.80 |
| May 2025 | -0.70 | 5.20 | -3.30 |
| Apr 2025 | -2.00 | 1.30 | -3.60 |
| Mar 2025 | -2.60 | 0.60 | -4.10 |
| Feb 2025 | -4.20 | -0.20 | -6.10 |
External Sector
Values are in USD million.
| Month (Year Month) | Official Reserves | Workers' Remittances | Earnings from Tourism |
|---|
| 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 |
| Jun 2025 | 6,081.00 | 635.70 | 169.50 |
| May 2025 | 6,286.00 | 641.70 | 164.10 |
| Apr 2025 | 6,327.00 | 646.10 | 256.70 |
| Mar 2025 | 6,531.00 | 693.30 | 354.00 |
| Feb 2025 | 6,086.00 | 548.10 | 367.60 |
| Jan 2025 | 6,065.00 | 573.00 | 400.70 |
| Month (Year Month) | Exports | Imports | Fuel Imports | Import (Non Fuel) |
|---|
| 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 |
| Jul 2025 | 1,302.20 | 1,882.20 | 269.70 | 1,612.50 |
| Jun 2025 | 1,141.80 | 1,682.10 | 331.50 | 1,350.60 |
| May 2025 | 1,034.70 | 1,507.20 | 252.80 | 1,254.40 |
| Apr 2025 | 968.40 | 1,685.90 | 354.70 | 1,331.20 |
| Mar 2025 | 1,241.70 | 1,637.30 | 360.70 | 1,276.60 |
| Feb 2025 | 1,052.90 | 1,464.20 | 278.40 | 1,185.80 |
