News & market updates

Hemas Holdings (HHL) reported record FY2025/26 results with group earnings of Rs.8.92 bn (up 10.7% YoY) and revenue of Rs.127.4 bn (up 8%). The group has earmarked over $100m for investments over the next four years and expects an FY27 acquisition to raise international revenue to 10% from 3%.

The Sri Lankan–German Business Forum 2026 will run 27–29 May in Colombo to promote FDI in maritime, ports and logistics and to showcase Sri Lankan IT startups. The conference, attended by the Prime Minister, will focus on port infrastructure financing, boosting exports to the EU and digitalisation.

ITAK MP Shanakiyan Rasamanickam called for a bipartisan national response and proposed expanding Aswesuma, transport subsidies, temporary VAT relief on essentials and measures to stabilise the rupee after it weakened about 6% to Rs.327.60 by 18 May 2026. He also urged curbs on luxury imports, criticised untargeted fuel subsidies and proposed a Sri Lanka Development Fund to boost tourism and FDI.

ASPI fell 4.26% for the week but closed Friday up 0.44% at 21,929.64, with market turnover near Rs.2.2bn and net foreign outflow of Rs.11.6m; top positive contributors were JKH, DOCK, MELS, RICH and SAMP amid cautious investors ahead of the CBSL policy meeting.

Government imposed a temporary 50% surcharge on customs import duty for imported vehicles from 16 May for three months and ruled out a vehicle import ban. Deputy Finance Minister said 380 LCs covering 1,782 vehicles valued $23.71m were opened on 15 May and LC values fell to $19.9m on 18 May and $14.98m on 19 May.

Colombo Dockyard PLC appointed Dilrukshi Kurukulasuriya, Executive Director and Chief Human Resources Officer of DIMO PLC, to its Board as a Non-Executive Independent Director. She has over 25 years' experience in human capital and has led DIMO's HR initiatives since 2008.

US SaaS platform Review Craze has partnered with Sri Lankan tea and hospitality brand Tea Avenue to roll out its review-management and customer analytics platform across Tea Avenue outlets. Tea Avenue plans to expand to 40–45 outlets by end-2026 and will use the system for real-time feedback and sentiment analysis.

Kelly Felder opened its first international flagship store at The Glen in Melbourne on 15 May 2026, becoming the first Sri Lankan fashion brand to establish a retail presence in the Western market.

David Pieris Motor Company (DPMC) opened a new KTM showroom, KTM Peliyagoda, at No. 389 Negombo Road, Peliyagoda, expanding its islandwide dealership and service network for KTM motorcycles in Sri Lanka.

Sri Lanka's national YoY inflation (NCPI) rose to 4.7% in April 2026 from 2.4% in March; food inflation increased to 1.1% (from 0.7%) and non-food inflation to 7.8% (from 3.8%).

Sri Lanka's tea exports fell 17.3% YoY in March to $114.75m as the Middle East conflict disrupts shipments; Dilmah (CTEA.N0000), which derives about 30% of sales from the Middle East, reports logistics and fuel-cost pressures and is shifting into new markets.

Colombo Stock Exchange rose as the ASPI gained 0.21% to 21,833, with banks leading turnover at Rs.599.8 million and the rupee weakening to Rs.352.50. Amana Bank announced a registered address change effective May 19, 2026; its shares closed up 1.85% at Rs.27.50.

HNB PLC has partnered with Singer (Sri Lanka) PLC to expand access to John Deere tractors via HNB leasing, offering special equal structured rentals. Customers also get a waived first-year credit card fee, discounted vehicle insurance and eligibility under the Govi Saviya product.

Hatton National Bank PLC (HNB) has partnered with Diesel & Motor Engineering PLC (DIMO) to provide tailored leasing solutions and special leasing rates for heavy machinery. HNB General Insurance will offer discounted machinery insurance and customers get a waived first-year credit-card annual fee.

CameraLK, Sri Lanka’s official Sony distributor, unveiled the Sony Alpha a7R VI and FE 100-400mm F4.5 GM OSS at a regional launch held in Sri Lanka, featuring hands-on demo zones and a visiting Sony delegation.

Ambeon Capital PLC reported consolidated PAT of LKR 3,242 million for FY2025/26, up 104% YoY. Group revenue was LKR 19 billion (+12%), with strategic moves including increased stakes in DFCC (9.91%) and Seylan (9.93%), a 13.33% holding in Ceylon Hotels and a planned controlling stake in Harischandra Mills.

Colombo market closed marginally lower, with the ASPI down 0.07% at 22,298.07 while foreign investors were net buyers with inflows of over Rs.50 million. JKH.N0000, RICH.N0000, CIC.N0000, SAMP.N0000 and NDB.N0000 were among the top negative contributors; capital goods led turnover and banking plus food, beverage & tobacco made up 27% of turnover.

Singer (Sri Lanka) reported a 77.5% rise in quarterly profit to Rs2.39bn for the March 2026 quarter. Group revenue rose 47% to Rs35.7bn, driven by strong home appliances performance and a 77% jump in financial services PBT; EPS was Rs2.05.

Colombo Stock Exchange closed slightly lower—ASPI down 0.07% at 22,298 and S&P SL20 down 0.21% at 6,148, with turnover Rs.2.32bn. Top contributors included Dialog, Vallibel One, Colombo Dockyard and Browns; Singer reported Q4 profit up 77% to Rs.2.48bn and Union Chemicals declared a Rs.44/share dividend.

Hameedia unveiled 'The Sprezzatura' collection by Fouzul Hameed at Colombo Fashion Week Summer 2026 and hosted an exclusive Spring/Summer launch at Envoy Mansion; selected pieces are available for viewing with custom orders and tailored garments deliverable within 48 hours.

The Ceylon Chamber of Commerce will host the Sri Lanka Climate Summit 2026 on 9 June 2026 at Taj Samudra, shifting focus to implementation, technical readiness and climate-linked finance. Platinum sponsors include Commercial Bank and Dilmah Tea; strategic sponsors include Nestlé Lanka, Cargills and Colombo Stock Exchange.

Continental Cars & Commercials Pvt Ltd will reintroduce a major German automotive brand to Sri Lanka with an official launch in Colombo later this month and is building a modern showroom and fully equipped workshop. The company says it will provide comprehensive aftersales support, trained staff and a customer loyalty club; the brand and lineup will be announced ahead of the launch.

Sri Lanka's services sector contracted in April 2026, with the CBSL PMI falling to 46.7 from 59.4 the previous month, driven by higher fuel prices, post-festive seasonal slowdown and weaker tourist arrivals.

Asian stocks fell as drone attacks in the Gulf pushed Brent above $111/bbl and global bond yields higher (US 10-year ~4.63%), raising inflation and tightening risks; Nvidia and major retail earnings this week will test equity resilience.

Finance Ministry imposes a temporary 50% surcharge on existing Customs import duty for imported vehicles effective 16 May for three months, with LCs opened on or before 15 May exempt. The measure (excluding motorcycles, three-wheelers and commercial vehicles) aims to curb non-essential imports and ease pressure on foreign reserves.

Ambeon Capital's subsidiary Ambeon Essentials closed its mandatory offer for Harischandra Mills with acceptances representing a 51.11% controlling stake at Rs.3,400 per share. The controlling stake was valued at ~Rs.3.34 billion (total equity ~Rs.6.5 billion); Hayleys was the top shareholder with 40.58%.

Colombo Stock Exchange closed lower as ASPI fell 2.59% (592.28 pts) to 22,313.47. Brokers cited broad selling with John Keells, RIL Property, Hayleys, Commercial Bank and Colombo Dockyard weighing on the index while Ceylinco Insurance was a positive contributor; Lion Brewery and Ceylon Beverage reported higher quarterly profits.

Zellers ran an AI-powered Avurudu Kumara and Kumariya contest with over 450 entries and a two-hour live voting finale, crowning Contestant 116 (Anji) and Contestant 377 (Ivory Cocoa) as winners; the relaunched Maliban brand used animated Facebook finalists to boost engagement.

Bairaha Farms PLC (BFL.N0000) has achieved ISO 14064 GHG Verification with a “reasonable level of assurance” at the organizational level. The certificate was issued under the Sri Lanka Climate Fund and presented in early 2026, positioning the company for greater ESG transparency and export-market credibility.

The Colombo ASPI fell 0.69% (158.23 pts) for the week while net foreign selling totaled Rs. 579.98 million. Turnover was over Rs. 2.8 billion; capital goods led turnover (38%) and banks plus diversified financials contributed 28%, with COMB and HUNT among top positive contributors.