Prepared by·SRP Research
Designed by·SRP Studio
Editor·Aaron Russell-Davison — Managing Director, SRP International
Period·January 2026
Executive Summary
Equity Markets
CSE commenced 2026 on a positive note with the ASPI recording a solid 5.25% gain in January. The S&P SL20 Index increased by 7.86% over the month. However, there was a distinct contrast in appetite, with domestic buying interest meeting foreign profit-taking.
Inflation
The Colombo Consumer Price Index (CCPI) showed an uptick in January. Year-on-year headline inflation increased to 2.3% in January 2026, up from 2.1% in December 2025. Food inflation saw a notable rise, accelerating to 3.3% in January 2026, compared to 3.0% in the previous month. Non-Food inflation remained stable, holding steady at 1.8% in January 2026, unchanged from December 2025.
Interest Rates
The Average Weighted Prime Lending Rate declined by 19 bps, ending the month at 8.88%. The moderation indicates a measured pass-through of the accommodative monetary stance into lending markets. Lower borrowing costs are useful to corporates and households, but as 19bp is a minor reduction, we don't see the credit picture as having changed materially.
Exchange Rates
In January 2026, the Sri Lankan Rupee (LKR) showed mixed movements against major currencies. It appreciated slightly by 0.16% against the US Dollar, while depreciating against the British Pound (1.95%), Euro (1.27%), and Singapore Dollar (1.16%). The most notable gain was against the Australian Dollar, with a 4.18% increase.
Crude Oil Prices
Brent crude prices saw an increase of 13.64% month-on-month in January 2026, reaching approximately USD 69.33 per barrel. This rise was primarily driven by escalating geopolitical tensions in the Middle East, particularly concerns over a potential US attack on Iran. Additional support for the price increase came from disruptions in crude oil production caused by a severe winter storm in the US, along with a weaker US dollar.
Tourist Arrivals
Sri Lanka's tourism industry had a record-breaking start to 2026, with January arrivals reaching an all-time high of 277,327 visitors, surpassing previous benchmarks. This marks a 9.7% year-on-year growth compared to January 2025 and a 16.1% increase over the 2018 benchmark. Notably, January 2026 outperformed December 2025, traditionally a peak month, by over 18,399 visitors. The headline is most welcome, and we will scrutinise the details of spending-per-arrival to conclude the strength of this data.
Market Statistics
| Month Ending | January-2026 | December-2025 | Change (%) |
|---|
| All Share Price Index | 23,812.31 | 22,624.31 | 5.25% |
| S&P 20 Index | 6,641.15 | 6,157.38 | 7.86% |
| Consumer Services (Hotels) | 645.11 | 664.74 | -2.95% |
| Real Estates | 3,586.22 | 2,859.52 | 25.41% |
| Capital Goods (Industrial) | 2,597.90 | 2,477.06 | 4.88% |
| Food Bev & Tob (Plantations and Other) | 2,399.24 | 2,349.92 | 2.10% |
| Materials | 3,319.77 | 3,202.94 | 3.65% |
| Banks | 1,937.14 | 1,790.05 | 8.22% |
| Telecommunication Services | 2,774.50 | 2,466.30 | 12.50% |
| Market Capitalisation (SLRs. Bn) | 8,498.37 | 8,068.62 | 5.33% |
International Markets
| Market | January-2026 | December-2025 | Change (%) |
|---|
| STI Index (Singapore) | 4,905.13 | 4,646.21 | 5.57% |
| DAX (Germany) | 24,538.81 | 24,490.41 | 0.20% |
| Nikkei (Japan) | 53,322.85 | 50,339.48 | 5.93% |
| FTSE 100 (UK) | 10,223.54 | 9,931.38 | 2.94% |
| Dow Industrial (US) | 48,892.47 | 48,063.29 | 1.73% |
Exchange Rates
| Currency | January-2026 | December-2025 | Change (%) |
|---|
| Euro | 368.58 | 363.96 | 1.27% |
| SNG$ | 244.14 | 241.35 | 1.16% |
| AUD | 216.19 | 207.51 | 4.18% |
| GBP | 425.47 | 417.31 | 1.95% |
| US$ | 309.50 | 309.99 | -0.16% |
Quoted as LKR per unit of foreign currency; a higher figure indicates depreciation of the rupee.
Commodity Prices
| Commodity | January-2026 | December-2025 | November-2025 |
|---|
| Brent Crude $/bbl | 69.33 | 61.01 | 62.51 |
| Gold $/Troy oz | 4,895.20 | 4,318.20 | 4,213.40 |
| Tea $/Kg | 2.73 | 2.88 | 2.99 |
| Rubber, TSR20 $/Kg | 1.84 | 1.74 | 1.71 |
Interest Rates
| Rate type | January-2026 | December-2025 | Change (%) |
|---|
| AWPR | 8.88 | 9.07 | -2.09% |
| AWDR | — | 6.78 | — |
| Treasury Bill Yield | | | |
| 3 Months | 7.72 | 7.64 | 1.05% |
| 6 Months | 8.07 | 7.89 | 2.28% |
| 12 Months | 8.20 | 8.09 | 1.36% |
| Treasury Bond Yield | | | |
| 5 Years | 9.82 | 9.80 | 0.20% |
| 10 Years | 10.84 | 10.70 | 1.31% |
AWDR = Commercial Bank Average Weighted Deposit Rate. AWPR = Commercial Bank Average Weighted Prime Lending Rate.
Inflation (Headline)
| Inflation | January-2026 | December-2025 | Change (%) |
|---|
| Colombo Consumer Price Index (CCPI) | 2.30 | 2.10 | 9.52% |
Daily Indices
| Day | ASPI | S&P SL 20 |
|---|
| Jan 2, 2026 | 22,910.46 | 6,186.09 |
| Jan 5, 2026 | 23,037.35 | 6,227.44 |
| Jan 6, 2026 | 23,325.38 | 6,363.85 |
| Jan 8, 2026 | 23,520.66 | 6,458.03 |
| Jan 9, 2026 | 23,673.73 | 6,503.02 |
| Jan 12, 2026 | 23,620.19 | 6,502.45 |
| Jan 13, 2026 | 23,607.80 | 6,494.76 |
| Jan 14, 2026 | 23,736.76 | 6,541.97 |
| Jan 16, 2026 | 23,750.12 | 6,560.08 |
| Jan 19, 2026 | 23,639.43 | 6,539.35 |
| Jan 20, 2026 | 23,623.74 | 6,544.80 |
| Jan 21, 2026 | 23,803.90 | 6,619.32 |
| Jan 22, 2026 | 23,833.71 | 6,617.85 |
| Jan 23, 2026 | 23,956.51 | 6,649.50 |
| Jan 26, 2026 | 23,955.91 | 6,663.12 |
| Jan 27, 2026 | 23,960.16 | 6,672.37 |
| Jan 28, 2026 | 23,967.22 | 6,670.21 |
| Jan 29, 2026 | 23,926.41 | 6,655.66 |
| Jan 30, 2026 | 23,812.31 | 6,641.15 |
Volume & Turnover
| Day | Turnover | Volume |
|---|
| Jan 2, 2026 | 5,166,497,784.25 | 132,965,091.00 |
| Jan 5, 2026 | 5,770,854,747.30 | 130,602,778.00 |
| Jan 6, 2026 | 6,594,638,496.20 | 154,747,467.00 |
| Jan 8, 2026 | 12,328,197,193.40 | 223,708,822.00 |
| Jan 9, 2026 | 8,549,002,346.20 | 269,331,853.00 |
| Jan 12, 2026 | 5,211,606,123.40 | 156,896,127.00 |
| Jan 13, 2026 | 4,940,448,191.00 | 133,250,564.00 |
| Jan 14, 2026 | 9,265,196,079.50 | 326,231,335.00 |
| Jan 16, 2026 | 4,729,217,091.15 | 132,553,744.00 |
| Jan 19, 2026 | 4,686,344,852.55 | 214,261,051.00 |
| Jan 20, 2026 | 5,166,825,404.55 | 134,505,286.00 |
| Jan 21, 2026 | 9,819,416,252.05 | 180,290,504.00 |
| Jan 22, 2026 | 8,318,829,133.00 | 187,173,066.00 |
| Jan 23, 2026 | 10,501,825,474.95 | 258,938,123.00 |
| Jan 26, 2026 | 5,496,085,819.55 | 194,951,894.00 |
| Jan 27, 2026 | 5,206,670,979.45 | 272,477,606.00 |
| Jan 28, 2026 | 6,940,995,376.55 | 347,127,499.00 |
| Jan 29, 2026 | 6,923,227,873.25 | 277,348,219.00 |
| Jan 30, 2026 | 9,192,230,324.85 | 211,566,158.00 |
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 | | 2.69 | 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 | | 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 |
January 2026 was an all-time-high monthly inflow — up 9.7% YoY and 16.1% over the 2018 benchmark — outperforming December 2025 by over 18,399 visitors.
Primary Deposit & Lending Rates
| Period (Year Month) | AWDR | AWPR |
|---|
| Jan 2026 | — | 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 |
| Feb 2025 | 7.21 | 8.36 |
CCPI Year on Year (%)
| Month (Year Month) | Headline | Food | Non Food |
|---|
| 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 |
| Jan 2025 | -4.00 | -2.60 | -4.70 |
External Sector
Values are in USD million.
| Month (Year Month) | Official Reserves | Workers' Remittances | Earnings from Tourism |
|---|
| 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 |
| Dec 2024 | 6,122.00 | 613.80 | 362.10 |
| Month (Year Month) | Exports | Imports | Fuel Imports | Import (Non Fuel) |
|---|
| 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 |
| Jan 2025 | 1,052.80 | 1,785.50 | 417.70 | 1,367.80 |
