18/09/2026
Global interest rates are moving higher as major central banks respond to renewed inflationary pressures and elevated oil prices. With US Treasury yields also rising, global returns are becoming more competitive for investors.
For Sri Lanka, the impact is being reflected through foreign capital flows, exchange-rate pressures, and the upcoming CBSL policy decision. While foreign equity outflows have increased, foreign investors continue to show interest in Sri Lankan rupee-denominated government securities.
As the market looks towards the 30 September CBSL monetary policy decision, both a hold and a hike remain possible, with different implications for the rupee, interest rates, and CSE sectors.