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Home Insights Financial & Economic Analysis — May 2026
Monthly Briefing

Financial & Economic Analysis — May 2026

Aaron Russell-Davison Editor · Managing Director, SRP International
Prepared by·SRP Research Designed by·SRP Studio Editor·Aaron Russell-Davison — Managing Director, SRP International Period·May 2026

Executive Summary

Equity Markets

The Colombo Stock Exchange recorded a slightly negative performance in May 2026, following the strong recovery seen in April. The All Share Price Index declined by around 1.06% MoM to close at 22,310.80, while the S&P SL20 decreased by approximately 0.78% MoM to end at 6,159.15. Despite the monthly retracement, market volumes rose towards the end of the month. Given the broader market volatility, the May results were a credible performance by the local bourse.

Inflation

Inflationary pressures remained elevated in May, with CCPI headline inflation rising marginally to 5.5% YoY from 5.4% YoY in April. This was driven by the non-food segment, where prices accelerated to 7.8% YoY, reflecting the impact of energy prices. Food inflation eased to 0.9% YoY, compared with 2.8% YoY in the previous month. With no change to the current Strait of Hormuz stand-off, energy-related cost pressures will continue to affect inflation in the near term.

Exchange Rates

The Sri Lankan rupee depreciated further against the US dollar, with the USD/LKR rate weakening by approximately 2.65% MoM to close near LKR 327.82/USD, compared with around LKR 319.35/USD at end-April. The pressure on the rupee can be largely attributed to elevated global oil prices and the seasonal moderation in tourism-related FX inflows.

Crude Oil Prices

Crude oil prices remained volatile in May 2026, although prices eased towards the end of the month. Brent crude declined by around 17.26% MoM to trade near USD 91/bbl, compared with around USD 110/bbl at end-April. Despite the monthly decline, the keywords are "volatility" and "inflationary impact".

Tourist Arrivals

Tourist arrivals recovered in May 2026, with Sri Lanka recording 145,745 arrivals during the month, up 9.65% YoY from 132,919 arrivals in May 2025. Cumulative arrivals for January–May 2026 stood at 1,022,022, compared with 1,029,803 during the same period in 2025, reflecting a marginal decline of around 0.8% YoY. India remained the key source market, accounting for 41.0% of May arrivals, followed by the United Kingdom, China, Germany, and Australia.

Market Statistics

Month EndingMay-2026April-2026Change (%)
All Share Price Index22,310.8022,549.53-1.06%
S&P 20 Index6,159.156,207.56-0.78%
Consumer Services (Hotels)558.47573.78-2.67%
Real Estates3,642.813,544.952.76%
Capital Goods (Industrial)2,365.322,383.71-0.77%
Food Bev & Tob (Plantations and Other)2,421.622,431.15-0.39%
Materials3,106.453,096.820.31%
Banks1,757.771,794.60-2.05%
Telecommunication Services3,386.262,849.8318.82%
Market Capitalisation (SLRs. Bn)8,115.768,174.62-0.72%

International Markets

MarketMay-2026April-2026Change (%)
STI Index (Singapore)5,037.864,912.692.55%
DAX (Germany)25,104.7024,292.383.34%
Nikkei (Japan)66,329.5059,284.9211.88%
FTSE 100 (UK)10,409.2810,378.820.29%
Dow Industrial (US)51,032.4649,652.142.78%

Exchange Rates

CurrencyMay-2026April-2026Change (%)
Euro381.78372.682.44%
SNG$256.81249.343.00%
AUD234.59227.473.13%
GBP440.62430.422.37%
US$327.82319.352.65%

Quoted as LKR per unit of foreign currency; a higher figure indicates depreciation of the rupee.

Commodity Prices

CommodityMay-2026April-2026March-2026
Brent Crude $/bbl91.17110.2103.94
Gold $/Troy oz4,541.34,621.24,674.2
Tea $/Kg3.022.832.69
Rubber, TSR20 $/Kg2.212.061.95

Interest Rates

Rate typeMay-2026April-2026Change (%)
AWPR9.909.573.45%
AWDR—6.86—
Treasury Bill Yield
3 Months8.848.0210.22%
6 Months8.978.1310.33%
12 Months9.188.3110.47%
Treasury Bond Yield
5 Years10.7710.047.27%
10 Years11.6311.005.73%

AWDR = Commercial Bank Average Weighted Deposit Rate. AWPR = Commercial Bank Average Weighted Prime Lending Rate.

Inflation (Headline)

InflationMay-2026April-2026Change (%)
Colombo Consumer Price Index (CCPI)5.505.401.85%

Daily Indices

DayASPIS&P SL 20
May 4, 202622,710.356,244.64
May 5, 202622,622.346,213.24
May 6, 202622,739.776,245.13
May 7, 202622,984.506,292.26
May 8, 202623,086.016,319.24
May 11, 202623,011.726,300.02
May 12, 202623,015.326,294.31
May 13, 202622,936.166,269.41
May 14, 202622,917.316,267.26
May 15, 202622,905.756,284.24
May 18, 202622,337.726,161.98
May 19, 202622,334.266,148.77
May 20, 202621,856.206,034.00
May 21, 202621,853.576,038.71
May 22, 202621,982.156,061.02
May 25, 202622,388.396,179.10
May 26, 202622,182.426,118.26
May 27, 202622,199.236,131.34
May 29, 202622,310.806,159.15

Volume & Turnover

DayTurnoverVolume
May 4, 20264,807,535,492.4090,211,297.00
May 5, 20262,152,646,628.3597,863,959.00
May 6, 20264,131,072,562.90376,997,979.00
May 7, 20265,279,970,766.55514,541,726.00
May 8, 20264,094,780,332.20273,702,171.00
May 11, 20264,929,022,300.25185,345,186.00
May 12, 20263,668,172,136.85158,575,813.00
May 13, 20262,824,088,129.65142,365,235.00
May 14, 20262,616,400,055.70180,859,971.00
May 15, 20262,849,436,512.50114,610,254.00
May 18, 20264,886,071,966.90210,433,295.00
May 19, 20262,323,118,433.2093,154,225.00
May 20, 20263,803,274,127.80175,695,297.00
May 21, 20262,159,280,408.8076,625,344.00
May 22, 20262,175,057,602.1578,363,361.00
May 25, 20262,426,033,032.55106,097,149.00
May 26, 20264,927,609,221.0094,323,056.00
May 27, 20261,864,853,274.7061,872,597.00
May 29, 20267,375,907,615.25515,982,086.00

Tea Auction Prices (USD)

Month20262025202420232022202120202019
Jan2.732.782.662.772.862.682.512.54
Feb2.702.692.712.702.792.562.362.38
Mar2.692.692.692.692.612.432.132.38
April2.832.913.032.963.242.672.362.65
May3.023.023.202.712.992.712.512.73
June2.993.222.692.962.702.842.56
July3.023.302.473.312.653.042.58
Aug3.043.222.833.372.723.152.63
Sep2.943.272.853.332.733.082.54
Oct3.013.152.763.152.783.002.58
Nov2.993.092.743.052.832.782.61
Dec2.882.962.712.952.822.652.57

Tourist Arrivals

Tourist Arrivals2026202520242023202220212020
January277,327252,761208,253102,54582,3271,682228,434
February279,328240,217218,350107,63996,5073,366207,507
March183,979229,298209,181125,495106,5004,58171,370
April135,643174,608148,867105,49862,9804,1680
May145,745132,919112,12883,30930,2071,4970
June138,241113,470100,38832,8561,6140
July200,244187,810143,03947,2932,4290
August198,235164,609136,40537,7605,0400
September158,971122,140111,93829,80213,5470
October165,193135,907109,19942,02622,7710
November212,906184,158151,49659,75944,2940
December258,928248,592210,35291,96189,506393

India remained the key source market in May 2026 (41.0% of arrivals), followed by the United Kingdom, China, Germany, and Australia.

Primary Deposit & Lending Rates

Period (Year Month)AWDRAWPR
May 2026—9.90
Apr 20266.869.57
Mar 20266.839.28
Feb 20266.839.35
Jan 20266.818.88
Dec 20256.789.07
Nov 20256.778.64
Oct 20256.798.31
Sep 20256.808.10
Aug 20256.827.97
Jul 20256.888.07
Jun 20256.938.11

CCPI Year on Year (%)

Month (Year Month)HeadlineFoodNon Food
May 20265.500.907.80
Apr 20265.402.806.80
Mar 20262.200.702.90
Feb 20261.600.202.30
Jan 20262.303.301.80
Dec 20252.103.001.80
Nov 20252.103.001.70
Oct 20252.103.501.40
Sep 20251.502.900.70
Aug 20251.202.000.80
Jul 2025-0.301.50-1.20
Jun 2025-0.604.30-2.80
May 2025-0.705.20-3.30

External Sector

Values are in USD million.

Month (Year Month)Official ReservesWorkers' RemittancesEarnings from Tourism
Apr 20266,766.00767.90157.10
Mar 20267,026.00814.80223.70
Feb 20267,270.00729.00352.00
Jan 20266,832.00751.10378.30
Dec 20256,825.00879.10308.60
Nov 20256,034.00673.40251.60
Oct 20256,216.00712.00186.10
Sep 20256,244.00695.70182.90
Aug 20256,178.00680.80258.90
Jul 20256,147.00697.30318.50
Jun 20256,081.00635.70169.50
May 20256,286.00641.70164.10
Apr 20256,327.00646.10256.70
Month (Year Month)ExportsImportsFuel ImportsImport (Non Fuel)
Apr 20261,074.102,456.70886.201,570.50
Mar 20261,254.302,134.10630.101,504.00
Feb 20261,057.801,833.80398.001,435.80
Jan 20261,148.701,803.30253.501,549.80
Dec 20251,158.002,155.20390.101,765.10
Nov 20251,047.801,778.50333.301,445.20
Oct 20251,149.402,156.80357.801,799.00
Sep 20251,138.502,048.60440.701,607.90
Aug 20251,282.301,696.50255.201,441.30
Jul 20251,302.201,882.20269.701,612.50
Jun 20251,141.801,682.10331.501,350.60
May 20251,034.701,507.20252.801,254.40

This briefing is prepared by SRP Research for general information only and does not constitute financial, investment, or tax advice. Figures are reproduced from the SRP International Financial & Economic Analysis for May 2026 (external-sector figures to April 2026) and are subject to revision.

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