News & market updates

Horana Plantations PLC (part of Hayleys) launched T-SHADE, a Verra-registered shade-tree carbon credit pilot that has restored 55 hectares and planted 7,094 shade trees and aims to scale to 100,000 hectares over a 40-year crediting period.

The Planters’ Association is urging the government to lift the April 2021 ban on oil palm cultivation, saying Sri Lanka has spent over $175m on edible oil imports since 2021 and that sector investments exceeding Rs.23bn were stranded by the ban.

The Planters’ Association says Sri Lanka’s April 2021 ban on oil palm cultivation has forced plantation firms (including Watawala, Namunukula, Elpitiya and Malwatte Valley) into write-offs and contributed to over US$175m in edible oil import costs since 2021.

Watawala Plantations PLC (WATA.N0000) saw its tea ad campaign targeted by a coordinated political disinformation campaign, prompting the brand to remove the main post. Independent tracking showed rapid, inorganic amplification via fake accounts and politically affiliated pages.

The All Island Dairy Association pledged support for government dairy development and welcomed the Budget removal of VAT on fresh milk; AIDA members collect over 65% of local milk while the association supplies about 40% of the nation's fresh milk needs.

Colombo Stock Exchange extended its rally into an 11th session as the ASPI rose 0.47% (102.30 pts) to 21,778.60 with turnover of Rs. 6.27 billion and foreign net outflows of Rs. 362.2 million. Top contributors included DIMO, BUKI, CCS, MELS, WATA and SUN, with gains also in CHOT and PKME.

Colombo Stock Exchange ASPI rose 0.47% to 21,778.60, led by gains in Diesel & Motor Engineering (DIMO.N0000), Bukit Darah (BUKI.N0000), Ceylon Cold Stores (CCS.N0000), Melstacorp (MELS.N0000) and Watawala Plantations (WATA.N0000).

Colombo stock market opened the week higher as the ASPI rose 0.36% (77.31 pts) to 21,676.20, led by plantation counters and conglomerates; turnover was about Rs.4.2bn and foreigners were net sellers of Rs.15.6m.

Colombo stocks rose on Monday with the ASPI up 0.36% (77.31 points) as retail buying lifted plantation and some manufacturing shares; top contributors included Carson Cumberbatch, Melstacorp, John Keells, Namunukula and Watawala.

Colombo Stock Exchange closed down, with the ASPI down 0.14% (29.43 pts) at 20,612 as budget concerns created volatility. Market turnover was 5.847 billion rupees; DFCC, Nations Trust and Watawala were among top gainers while Commercial Bank and Sampath weighed on the index.

Sunshine Holdings PLC reported 1QFY26 consolidated revenue of Rs. 15.9 billion (+11.6% YoY) and PAT of Rs. 1.7 billion (+20.6% YoY). Healthcare was the largest contributor (54.2%); agribusiness via Watawala Plantations posted 20.7% revenue growth with an expanded EBIT margin of 48.8%.

Sunshine Holdings (SUN) reported consolidated revenue of LKR 15.9 billion in 1QFY26, up 11.6% YoY, and PAT of LKR 1.7 billion (+20.6% YoY). Healthcare drove performance (54.2% of revenue) while consumer and agribusiness (represented by Watawala) also posted YoY gains.

Multiple plantation companies (Agarapatana, Elpitiya, Talawakelle, Hatton, Watawala, Kegalle, Kelani Valley, Maskeliya, Namunukula, Kahawatte and Balangoda) are running scholarship programs supporting hundreds of students; Elpitiya alone funds 100 university and 80 A/L students at a cost exceeding LKR 12.4m.

Colombo market fell as ASPI declined 0.58% (around 106 points) and S&P SL20 down 0.5% on low turnover of Rs.2.4bn; major drags included Melstacorp, Colombo Dockyard, Commercial Bank, Aitken Spence and NDB, while turnover was led by Sampath, John Keells and Vallibel Finance.

Colombo's ASPI finished the week up 1.5%, closing at 18,148 (up 47 pts) while the S&P SL20 gained 1.6%, with weekly turnover averaging Rs.6.8bn. Top contributors included John Keells, Melstacorp, Commercial Bank, Sunshine and CT Holdings, and food retailing led turnover.

Sunshine Holdings reported consolidated revenue of LKR 59.3 billion for FY25, up 7.0% YoY and led by 17.3% growth in Healthcare which contributed 55% of group revenue. Group EBIT rose 7.1% to LKR 9.3 billion while PAT fell to LKR 5.9 billion after a 48.9% increase in income tax.

Dividend · Rs 1.30 · XD Jun 30, 2025

Final dividend of LKR 1.3/share; XD 2025-06-30; record 2025-06-30; payable 2025-07-18; FY 2024/25

Hatton National Bank saw a 9.99% stake divestment (45.9m shares) by Browns Investments via nine off‑board trades at Rs.305, driving turnover to Rs.18.7bn and lifting the ASPI ~1%. Banking counters led gains and accounted for 81% of turnover, with broad buying across banks and select FMCG names.

Colombo bourse closed the shortened week with the ASPI up 2.9% and S&P SL20 up 3.5%, average daily turnover Rs.3.67bn, led by gains in JKH, LOLC, CARS, EBCR and SAMP; foreigners recorded a net inflow of Rs.157.2m.

Colombo Bourse closed the week higher, with the ASPI up ~2% and finishing at 15,742 after a 126-point gain on Friday. Market gains were led by LOLC, RCL, NDB, SUN and MELS, with Friday turnover at Rs.2.4bn (Capital Goods, Food & Beverage and Diversified Financials leading) while foreigners were net sellers (Rs.103.6m).

Sunshine Holdings (CSE: SUN) announced Vish Govindasamy will move to a Non-Executive Deputy Chairman role and Group CEO Shyam Sathasivam will take over leadership of the Group. Govindasamy will continue in an advisory capacity to ensure continuity during the transition.

Sunshine Holdings PLC (SUN) said Vish Govindasamy will step down from his executive role to become Non-Executive Deputy Chairman while Group CEO Shyam Sathasivam succeeds him to lead the Group. Govindasamy will continue to support the Group in an advisory capacity and Sathasivam, CEO since 2024, will lead the next growth phase.

M One showcased integrated marketing work for clients including Watawala and CIC; Watawala’s Digivation campaign recorded 4.9 million views, 5.2 million Facebook impressions and won GOLD DRAGONS 2024, while CIC’s 60th anniversary campaign ran across TV, radio and digital.

Dividend · Rs 1.40 · XD Mar 24, 2025

Second Interim dividend of LKR 1.4/share; XD 2025-03-24; record 2025-03-24; payable 2025-04-11; FY 2024/25

Sunshine Holdings reported consolidated 9MFY25 revenue of Rs. 45.2bn (up 6.7% YoY) while PAT fell 14.1% to Rs. 4.7bn and the group announced a share split. The healthcare segment drove growth (revenue +17.8% to Rs. 24.8bn) while agribusiness (Watawala) revenue fell 7.1% to Rs. 6.0bn and consumer brands declined 3.1%.

Sunshine Holdings (SUN.N0000) reported consolidated 9MFY25 revenue of LKR 45.2 billion, up 6.7% YoY, while profit after tax fell 14.1% to LKR 4.7 billion. Healthcare revenue rose 17.8% to LKR 24.8 billion; agribusiness (including Watawala) revenue fell 7.1% to LKR 6.0 billion and Consumer Brands declined 3.1%.

The ASPI fell 2.3% for the first week of February despite a 1.38% rebound on Friday; weekly turnover averaged Rs.4.16bn and Friday turnover was Rs.2bn. Ceylinco, Melstacorp, John Keells and Aitken Spence were among Friday's top contributors, while Watawala, Seylan Bank and SMB Finance were key detractors.