Sri Lankan banks report quarterly profits amid rising inflation

Major Sri Lankan banks reported their quarterly financial results for the period ending June 30, 2026. Sampath Bank saw its June quarter profit rise by 65 percent to Rs10.45 billion. Hatton National Bank (HNB) reported a profit of Rs11.77 billion, a 0.3 percent increase compared to the same quarter last year. HNB's performance was bolstered by a 30 percent surge in net interest income and growth in digital banking and card-related transactions.

Separately, the Central Bank of Sri Lanka reported that headline inflation has accelerated sharply, exceeding the 5 percent target. The bank attributed this rise to supply-side shocks, specifically the pass-through of higher global energy prices to domestic fuel and energy costs. Inflation is projected to remain elevated in the near term, influenced by geopolitical tensions in West Asia and potential weather risks from El Niño.