Dollar Outflow Warning | The Nightly Business Report

Ajouté : 2026-05-25

[00:00:05][music] [music] [music] >> Tonight [music] on the nightly business report Dollar outflow warning, president urges public to cut fuel use and limit imports to reduce pressure [music] on the US dollar outflows.

[00:00:34]Global growth slowdown United Nations downgrades global growth forecast for 2026 [music] amid economic uncertainty and rising global risk.

[00:00:45]>> [music] >> Bus fare increase Private bus owners warn minimum fare could rise to 40 rupees during July annual fare revision. [music] Uniper sale process Germany launches formal sales process for Uniper following 2022 energy crisis nationalization decision.

[00:01:05]This is the nightly business report reporting from [music] studio 24C.

[00:01:11]Here's Sanashi Dissanayake.

[00:01:14]Good evening. Thank you for joining the nightly business report on other than the news channel. President Anura Kumara Dissanayake stated that Sri Lanka is currently facing a severe crisis concerning the US dollar noting that the strengthening of the US dollar against other foreign currencies has directly affected the value of the Sri Lankan rupee. The president made his remarks while addressing the Ratama Ekata national anti-narcotic program held in Batticaloa district today.

[00:01:38]President Anura Kumara Dissanayake says Sri Lanka is facing mounting economic pressure due to declining foreign exchange inflows and rising global costs. Speaking on the current economic situation, the president revealed that tourist arrivals dropped by 29% in April compared to the same period last year significantly affecting dollar earnings from the tourism sector. He also noted that weaker global demand has reduced export income, while remittances from Sri Lankan workers overseas have also declined. The president further pointed out that the strengthening US dollar has sharply increased the country's fuel import bill, placing additional strain on the economy. President Dissanayake stated that the government is working closely with the International Monetary Fund under the Extended Fund Facility program to stabilize the economy and address financial pressures. He also urged the public to reduce fuel consumption and limit the use of imported goods in order to ease pressure on the US dollar.

[00:02:34]The United Nations has downgraded its global economic growth forecast, warning that renewed tensions in the Middle East have intensified inflationary pressures and increased global uncertainty.

[00:02:44]In its media update of the World Economic Situation and the Prospects report, the UN projects global GDP growth to slow to 2.5% in 2026, down from an estimated 3% in 2025 and below earlier projections. Growth is expected to recover slightly to 2.9% in 2027, supported by resilient labor markets, consumer demand, and continued investment in artificial intelligence, although the overall outlook remains weak. The report warns that rising energy prices are pushing up cost of household and businesses, while also contributing to high inflation across both developed and developing economies.

[00:03:15]It also notes that Western Asia is expected to face the sharpest slowdown, while major economies such as the US, Europe, China, India, and Africa are all projected to experience varying levels of moderated growth amid ongoing global pressures.

[00:03:29]Lanka Private Bus Owners Association warns that the minimum bus fare could increase to 40 rupees following the annual fare revision scheduled for July.

[00:03:37]Association Chairman Gemunu Wijeratne says the possible increase is linked to the continued weakening of the Sri Lankan rupee against the US dollar. He noted that the annual fare revision is calculated using 12 key criteria, including the Colombo Consumer Price Index, exchange rates, interest rate, and bus prices. Vijayaratna stated that currency depreciation is directly impacting transport operating costs across the sector. He further warned that the situation is becoming increasingly difficult for both private bus operators and passengers.

[00:04:08]The Milk Powder Importers Association has announced an increase in the prices of imported powdered milk effective today, citing rising import costs and ongoing fluctuations in the foreign exchange rates. According to the association, the price of a 400 g packet has been increased by 50 rupees, while a 1 kg packet will now cost 125 rupees more. Importers say the decision was taken after reviewing prevailing market conditions and the impact of the weakening rupee on import expenses.

[00:04:36]Meanwhile, the Essential Food Importers Association has warned that several other imported food items are also likely to record price increases in the coming weeks due to the depreciation of the Sri Lankan rupee against the US dollar. Speaking to the media, Association Secretary P. Subramaniam stated that exchange rate fluctuations are continuing to place heavy pressure on importers, directly affecting the cost of essential commodities brought into the country. He noted that prices of sugar, doll, several rice varieties, canned fish, imported potatoes, and other food items are expected to rise if the current trend continues. Importers also say Sri Lanka is facing additional pressure following India's temporary suspension of normal sugar exports until September 30th. As a result, local importers have been forced to seek alternative suppliers from the countries including Brazil, Thailand, and parts of Europe to meet local demand. The Association further noted that sugar shipments already ordered from Brazil are expected to take nearly two months to arrive due to long shipping routes and logistical delays. Importers warned that the higher cost of sourcing sugar from alternative markets together with currency depreciation could place additional pressure on consumers already struggling with the rising cost of living.

[00:05:52]According to Central Bank data, new active credit cards in Sri Lanka increased by 22,473 in March 2026, reaching more than 2 million by the end of this month.

[00:06:04]This marks a 1% month-on-month increase compared to 2,193,380 active cards recorded at the end of February. Overall, active credit cards rose by 2.3% in the first quarter of 2026, reflecting continued growth in consumer credit usage. The expansion follows a 7.8% increase in 2025 and a 4.8% rise in 2024, supported by economic recovery and lower interest rates.

[00:06:35]Analysts say banks have been actively promoting credit cards through partnerships with supermarkets and retailers amid improved economic conditions. However, experts also warn that future growth could moderate depending on inflation trends, interest rate changes, and broader economic conditions.

[00:06:53]Foreign investors sold more than 14.7 million US dollars worth of Sri Lanka government securities in the last week, according to Central Bank data amid renewed pressures on the rupee.

[00:07:04]The net outflow stood at 4,725 million rupees, marking the first time this year that foreign investment in rupee bonds has turned negative. With this, Sri Lanka has recorded a cumulative net outflow of 2,359 million rupees in the first 19 weeks of the year, reversing earlier inflows seen at the beginning of 2026.

[00:07:26]The development comes as the Sri Lankan rupee has depreciated by more than 5% so far this year, following a period of relative stability over the past 3 years. Analysts attribute the trend to rising inflation expectations, global economic uncertainty, and shifting investor sentiment across emerging markets.

[00:07:46]The Joint Apparel Association Forum Chairman, Felix Fernando, says the recent depreciation of the Sri Lankan rupee should be viewed against broader global pressures. He highlighted that the currency movement is part of a wider regional trend rather than a sign of domestic economic weakness. He made these remarks during an exclusive interview with the nightly business report. What happened is like last few months we have seen a gradual depreciation.

[00:08:12]Uh but it has to do with more than the country situation. It's got to do with the external pressures.

[00:08:20]We have few things happening, especially the our fuel bill has jumped from 98 million in February to almost over 500 million in May.

[00:08:35]Which is something that beyond I think any of our control. The war, then the recession, global demand, especially in US, not only for Sri Lanka, but overall US imports of apparel are down by about 12% for the first quarter.

[00:08:55]So, considering all these things, it's not Sri Lanka is not the only country that going through this downturn.

[00:09:04]If you look at our neighboring countries, Indian rupee has depreciated by about 6.4 the same period.

[00:09:12]Nepalese rupee by about 6.2, Indonesian rupiah by about 5.2.

[00:09:17]And up to yesterday, Sri Lankan rupee has depreciated up to about 4.8. All the exporters, not only for the apparel industry, but there are rules, regulations are there. There's a time duration the government has given that we need to bring back the remittances within such period. And also we are given a 90-day period to convert once but we get US dollars or the foreign currencies into the local currency rupee.

[00:09:48]A high-level discussion on Sri Lanka's digital governance and institutional reforms was held between Chandana Weeraratna and the UN Resident Coordinator Marc-André Franche at the Ministry of Public Administration in Colombo. The meeting focused on accelerating the country's digital transformation including the one registry program aimed at modernizing Sri Lanka's civil registration and vital statistics system.

[00:10:11]Officials confirm that a cabinet paper on the proposed reforms is expected to be submitted next week. The initiative supported by the United Nations Development Program and the World Health Organization has already completed system mapping and training programs with full completion targeted for 2027.

[00:10:25]Discussions also covered strengthening disaster response systems, improving waste management, and equipping 336 divisional secretary areas with computers and printers as part of the digitalization drive. The meeting further highlighted progress on electoral reforms and establishment of sectoral dispute resolution forums covering energy, education, health, and transport. Officials also reviewed plans to improve disaster management, introduce a national waste management strategy with UN support, and expand governance reforms including dispute resolution forums and electoral reform initiatives supported by the UN Development Programs.

[00:10:57]The Ministry of Agriculture, Livestock, Land, and Irrigation together with the Department of Agriculture and FAO has launched a crop seed production, certification, and traceability system to modernize Sri Lanka's seed sector through digital innovation. The system improves transparency, efficiency, and traceability across the seed value chain by linking stakeholders such as seed growers, laboratories, and field offices through the integrated digital platform.

[00:11:22]It addresses long-standing challenges including delays in certification, fragmented information systems, and limited access to quality assured seeds by enabling real-time monitoring digital workflows and data-driven decision-making, CropX strengthens coordination and supports faster and more reliable seed distribution. The initiative is expected to enhance farm access to quality seeds while advancing Sri Lanka's broader digital agriculture and food security goals.

[00:11:49]On the sidelines of the Asia Tech 2026 conference in Singapore, Sri Lanka held high-level bilateral discussions with the Bill and Melinda Gates Foundation focused on advancing the country's digital transformation agenda. The Sri Lankan delegation was held by Deputy Minister of Digital Economy Eranga Weli Ratna, while the Gates Foundation was represented by the senior official of Hari Menon.

[00:12:12]Sri Lanka Customs has collected 122 billion rupees in the first 18 days of May 2026, achieving nearly 65% of its monthly target of 187.8 billion rupees according to official data. By the first 138 days of 2026, the department had already achieved 47% of its full year revenue target reflecting steady collection momentum.

[00:12:35]The figures show that Customs has consistently exceeded its monthly revenue target so far this year, continuing the strong performance seen in previous months. By the first 138 days of 2026, the department had already achieved 47% of its full year revenue target reflecting steady collection momentum. In 2025, Sri Lanka Customs recorded a historic 2,551 billion rupees in revenue surpassing its revised annual target of 2,241 billion rupees and significantly exceeding the previous year's collection of 1,553 billion rupees. For 2026, the revenue target has been set at 2,207 billion rupees, which is lower than last year due to expectations of reduced vehicle imports. While officials note that enforcement improvements and a higher import activity continue to support strong revenue performance.

[00:13:30]Highways and urban development Minister Bimal Ratnayake says Sri Lanka spent over 5.1 billion rupees annually on maintaining country's expressway network. According to the minister, the maintenance cost covers the country's 312.57 km national expressway system. He also stated that expressway revenue in 2025 amounted to more than 16.3 billion rupees. The figures include the Southern Expressway, Outer Circular Highway, Colombo-Katunayake Expressway, and several other major expressways across the country.

[00:14:03]Let's take a short break [music] now.

[00:14:04]This is the nightly business report.

[00:14:16]Welcome back [music] to the nightly business report. The Colombo Stock Exchange closed lower today as broader based selling pressure the market. The All Share Price Index [music] fell 2.28% at 21,789.05.

[00:14:29]This NPSL 20 dropped by 1.87% ending the session at 6,034. Market turnover stood at 3.8 billion rupees with a total share volume of 175.7 million shares traded. A total of 41,001 trades were recorded during the session.

[00:14:45]The decline reflects continued investor cautious amid broad economic and global market uncertainty.

[00:14:51]Gold prices fell as Asian trade as investors remained worried about inflation linked to the Iran conflict.

[00:14:57]Spot gold slipped 0.3% to $4,468.64 an ounce, while the gold futures also declined 0.3% to $4,470.95 per ounce. The precious metal stayed near its weakest level since early April amid concerns over rising global inflation. High energy prices caused by the Middle East conflict have increased expectations that the Central Bank will keep interest rates elevated. Markets fear that prolonged high interest rates could hurt demand for non-yielding assets like gold. US President Donald Trump and Vice President JD Vance reported progress in Iran peace talks, but concerns over disputed oil supplies continue to weigh on sentiment.

[00:15:39]Oil prices eased today as investors monitor developments in US Iran peace talks. Brent crude futures fell 0.4% to $110 and 83 cents a barrel, while US West Texas Intermediate Crude slipped 0.3% to $103.88.

[00:15:55]Both oil benchmarks had already dropped $1 yesterday after signs of progress in negotiations between Washington and Tehran. US Vice President JD Vance said both sides were seeking to avoid renewed military conflict. President Donald Trump later told the lawmakers that the war with Iran could end very quickly.

[00:16:11]However, markets remain cautious after Trump also warned that the United States might still need a launch further strikes against Iran.

[00:16:20]The Sri Lankan weakened further against the US dollar across commercial banks today with a selling rate rising around 346 rupees in some institutions.

[00:16:28]Commercial Bank of Ceylon reported an increase in both buying and selling rates compared to previous trading day.

[00:16:34]Now, we can take a closer look at how the Sri Lankan rupee is performing against other major global currencies today.

[00:16:50]>> [music] [music] >> Let's take a short [music] break now.

[00:17:12]This is the nightly business report.

[00:17:17]>> [music] >> Welcome [music] back to the Night News Business Report. SLT Mobitel has reported strong financial results for the first quarter of 2026 recording significant growth in both revenue and profitability compared to the same period [music] last year.

[00:17:37]The SLT Group posted a consolidated revenue of 30.8 billion rupees up 10.6% from 27.9 billion rupees in the first quarter of last year driven mainly by strong demand for broadband services.

[00:17:48]Operating profit rose sharply by 39.1% to 5.1 billion rupees while profit before tax increased by 55.4% to 4.2 billion rupees and profit after tax climbed to 3.1 billion rupees. At company level SLT PLC also recorded strong performance while revenue rising 10.6% to 19.7 billion rupees and net profit increasing significantly compared to previous year. Meanwhile, Mobitel saw a 9.9% rise in revenue supported by broadband growth and value-added services while SLT Mobitel also marked a major milestone by opening its 5G network to the public accelerating Sri Lanka's digital transformation journey.

[00:18:24]CFA Society Sri Lanka commemorated its 25th anniversary by ringing the market opening bell on the Colombo Stock Exchange trading floor earlier this week. [music] The event also featured the issuance of commemorative cover and stamp by the Postmaster General of Sri Lanka. Established in 2001, the society is part of the global CFA Institute network supporting CFA charter holders and candidates in Sri Lanka. It currently has over 250 charter holders including senior professionals across banking, investment, and financial services while also supporting around 500 candidates. The society has been active in initiatives such as the CFA Institute Research Challenge, Capital Market Awards, and Financial Literacy Program in collaboration with the CSE.

[00:19:07]People's Leasing and Finance PLC marks 30 years of empowering entrepreneurs and communities across Sri Lanka through innovative financial solutions. Chairman Professor Ajanta Samarakoon said the milestone reflects the trust placed in institution by customers and stakeholders over three decades.

[00:19:23]The company, a subsidiary of the People's Bank, began operations in 1996 and has grown into leading non-banking financial institution. It now serves individuals, MSMEs, and businesses island-wide through a wide branch network supported by over 3,000 employees. Chairman Professor Ajanta Samarakoon said the milestone reflects the trust placed in the institution by customers and stakeholders over three decades. CEO Sanjeewa Bandaranayake reaffirmed the company's commitment to innovation, digital transformation, and sustainable growth. To mark the anniversary, People's Leasing has planned several events including a media briefing, CSR activities, staff programs, and a ceremonial CSE bell ringing event.

[00:20:11]Let's take a short commercial break.

[00:20:13]Global business [music] updates coming on the other side. This is the nightly business report.

[00:20:20]>> [music] >> Welcome back to the nightly business [music] report. Asian stocks extended losses today as rising bond yields and inflation fears unsettled investors.

[00:20:35]Markets remain cautious ahead of the Nvidia earnings with traders watching for signals to support global equities.

[00:20:42]The global bond sell-off intensified as expectations grew that the Federal Reserve could raise interest rates again this year. Japan's Nikkei fell 1.5% for a fifth straight session while South Korea's Kospi dropped 1.7%.

[00:20:56]Samsung Electronics slipped after its union announced an 18-day strike raising concerns over semiconductor supplies.

[00:21:03]Analysts said the recent weakness reflects a market correction following months of strong gains.

[00:21:09]Wall Street's main indexes closed lower with the Nasdaq leading declines after a benchmark 10-year Treasury yield climbed to its highest level in more than a year on mounting inflation concerns as oil prices stayed elevated.

[00:21:22]Wall Street's main indexes closed lower on Tuesday with the Dow and S&P 500 each shedding about 2/3 of a percent and the Nasdaq losing more than 8/10 of a percent. The benchmark 10-year Treasury yield climbed to its highest level in more than a year on mounting inflation concerns as oil prices stayed elevated and with no clear resolution to the US war in Iran. Tuesday's profit taking also came as investors anxiously awaited quarterly results from AI chip leader Nvidia due after Wednesday's market close. Among individual stock moves, cloud firm Akamai Technologies shed more than 6% after the company announced a $2.6 billion convertible bond offering.

[00:22:09]Shares of Home Depot closed higher after the home improvement chain beat sales and profit estimates despite warning of a cautious consumer.

[00:22:18]And shares of Target rose 3% ahead of its quarterly earnings results scheduled before Wednesday's opening bell.

[00:22:26]Germany launched the sales process for Uniper, the energy firm nationalized during the 2022 energy crisis with suitors invited to submit letters of intent by June 12th.

[00:22:38]Germany kicked off the sales process for bailed-out energy firm Uniper on Tuesday, paving the way for what could become one of Europe's biggest deals this year.

[00:22:47]Berlin had to nationalize Uniper during Europe's 2022 energy crisis for $15.7 billion to save it from collapse. That was after its former main supplier of gas, Gazprom, stopped deliveries.

[00:23:00]The government said in an official note placed in the Financial Times that suitors have until June the 12th to submit a letter of intent. Two people familiar with the matter told Reuters last month that the process could be started via an official tender note before the summer.

[00:23:15]It's expected the process will result in an outright sale or IPO of the company.

[00:23:20]Under European Union requirements, Berlin must reduce its Uniper stake to a maximum of 25% plus one share by the end of 2028.

[00:23:30]Thank you for watching the [music] nightly business report on Ada Derana news channel. Share your events and media releases via [music] email on [email protected].

[00:23:38]We will see you again tomorrow with the latest updates in the business globe.

[00:23:42]Vinod Wanasuriya will join you next with Ada Derana sports central. [music] Until then, I'm Senisha Dissanayake. Thank you for watching. Have a great night.

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