Sri Lanka, Oct. 13 -- More than a third of Sri Lanka's listed non-financial companies failed to generate sufficient earnings to cover their interest expenses in the first half of 2026, as rising costs and borrowing rates eroded the benefits of stronger revenue growth, the Central Bank of Sri Lanka (CBSL) said yesterday.

According to the CBSL's Financial Stability Review 2026, the proportion of listed non-financial corporates (NFCs) with an interest coverage ratio (ICR) below one rose to 37.7% from 33.8% a year earlier. The ICR measures earnings before interest and tax (EBIT) against interest expenses.

Consequently, the share of companies generating enough earnings to meet their interest costs fell to 62.3% from 66.2%.

The assessment co...