News & market updates

ASPI plunged 1,290.68 points (-5.4%) to 22,443.38 on Feb 3 after Middle East tensions triggered panic selling and a 30-minute circuit breaker; the S&P SL20 fell 322.32 pts (-4.9%). Turnover was Rs.9.6bn (up 62.9%); foreign investors net sold Rs.59.6m; decliners included COMB, SAMP, HNB, JKH and HAYL, while LIOC, CFLB, BOPL, MRH and MADU were among gainers.

Headline inflation (CCPI) YoY decelerated to 1.6% in February 2026 from 2.3% in January, with food inflation falling to 0.2% while non-food inflation rose and core inflation eased to 2.1%. The CBSL projects inflation will move toward a 5% target by H2 2026, and the target is under review amid criticism.

The Central Bank has directed Cargills Bank to meet interim capital targets (Rs.16.0bn by 31-Mar-2027; Rs.17.5bn by 31-Mar-2028; Rs.19.0bn by 31-Mar-2029; Rs.20.0bn by 31-Dec-2029) and to cut combined holdings of Cargills (Ceylon) and CT Holdings from current ~50.66% to 45% by Mar-2027, 35% by Mar-2028, 25% by Mar-2029 and 15% by Dec-2029.

Hayleys PLC’s proposed unsecured senior redeemable debentures of up to LKR7 billion were assigned a 'AAA(lka)' National Long-Term Rating by Fitch. Fitch noted subsidiary debt to consolidated EBITDA rose to 2.9x in 3QFY26, expects it to moderate to ~2.5x by FY27 and said failure could lower the debentures one notch.

Dr. T. Senthilverl acquired a near 10% stake in Renuka Agri Foods PLC for Rs. 1 billion. Trading saw 82.36m Renuka Agri shares change hands for Rs. 1.14 billion and Renuka Foods PLC remains the biggest shareholder at 67.89%.

Full’r Burgers has been named the Official Burger Partner for the 147th Battle of the Blues (Royal College vs St. Thomas’) from March 12–14, marking the third consecutive year of the partnership. The QSR will serve its signature range of burgers to fans across the three-day event.

Fitch assigned a 'AAA(lka)' National Long-Term Rating to Hayleys PLC's proposed unsecured senior redeemable debentures of up to LKR7 billion. Fitch noted subsidiary debt-to-consolidated-EBITDA rose to 2.9x in 3QFY26 (limit 2.5x) but expects it to moderate toward 2.5x in FY27, otherwise ratings risk.

Colombo stock market closed February lower: ASPI fell 47 points (0.2%) and the S&P SL20 dropped 74 points (>1%) with turnover of Rs.7 billion. Banks, conglomerates and blue-chips (COMB, JKH, HNB, CTC, LLUB) weighed on the index while Renuka Agri Foods rose and foreign investors were net sellers of Rs.363.8m.

Cargills' subsidiary CPC Lanka (Knuckles Spring Water) introduced Sri Lanka's first tethered bottle cap to improve plastic waste management and recyclability. The cap remains attached after opening to reduce discarded caps and support more complete collection and recycling.

Russel’s Wellness showcased Ayurveda-inspired wellness teas and medicinal formulations at Gulfood 2026, drawing strong interest from global buyers and a visit from Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, highlighting export potential for Sri Lanka’s heritage wellness sector.

Food inflation in Colombo fell to 0.2% Y-o-Y in February 2026, bringing headline CCPI inflation to 1.6% Y-o-Y and the month-on-month CCPI down 0.85%, driven mainly by lower vegetable and green chilli prices.

C T Holdings (CTHR.N0000) has appointed Indira Malwatta as an Independent Non-Executive Director. Malwatta has over 40 years' experience and currently serves on the boards of Samson International, Cargills and Kotmale.

Colombo stocks rose with the ASPI up 0.33% to 23,781.23, led by blue-chip gains from JKH, HAYL, MELS, AEL and LMF. Banking counters faced selling pressure after Q4 results while capital goods drove turnover (27%); foreigners were net buyers of Rs.194m.

Altair has attracted flagship showrooms from global automotive brands—TATA, JAECOO and OMODA are operational while BYD, DENZA and KIA will open shortly—enhancing the development's retail profile and involving corporate groups John Keells Holdings, Hayleys and DIMO.

Sri Lanka hosted a pavilion at the 73rd Bangkok Gems & Jewelry Fair with 60 Sri Lankan companies occupying 75 booths. The participation showcases Ceylon gemstones and aims to boost exports and trade ties with Thailand and the wider ASEAN market.

Russel’s Catering opened a new outlet in Orion City's IT Hub food court, bringing its fast-casual menu to Colombo’s tech community. The outlet offers quick-service meals with vegetarian options and some locally sourced ingredients, and is expected to boost on-site dining choices and jobs.

The Sri Lanka Export Development Board led a 19-member delegation of giftware & lifestyle SMEs to the IHGF Delhi Fair Spring 2026 (14–18 Feb) and held networking sessions in Mumbai to build buyer links and boost export-readiness through design and production exposure.

Ceylon Cold Stores (CCS.N0000) won the Gold award for Food & Beverages (Group Turnover above LKR 15 BN) and a Bronze for Corporate Governance Disclosure, while Keells Food Products (KFP.N0000) won Gold for Food & Beverages (Group Turnover up to LKR 15 BN) at the CA TAGS Awards 2025.

President Trump defended sweeping tariffs and said they could replace income tax; after a Supreme Court setback he signed a new 15% global tariff order (limited to 150 days) to take effect almost immediately.

Cabinet approved the updated National Tariff Policy on 3 November 2025 to amend tariff rules for legal compliance and resolve implementation issues; the changes aim to improve consistency in tariff application, reduce ambiguities and support broader macroeconomic objectives.

Colombo stocks closed in red, with the ASPI down 0.39% (92.40 pts) to 23,690.62 and the S&P SL20 down 0.71% to 6,681.12 on turnover of nearly Rs.3.7bn. Price losses in John Keells, Melstacorp and Nations Trust Bank were key negatives while ACL Cables, Access Engineering and Dialog were top turnover names.

Aitken Spence PLC has appointed Executive Chairperson Stasshani Jayawardena as interim Managing Director effective 1 April 2026. Jayawardena also chairs Aitken Spence Hotel Holdings and holds board roles at Lanka Milk Foods, Melstacorp and Distilleries Company of Sri Lanka.

Samsung Sri Lanka launches the 'Wowurudu' Avurudu consumer-electronics campaign from 15 Feb 2026, introducing two new double-door inverter no-frost refrigerators and a Twin Inverter WiFi air conditioner and promoting products island-wide via authorised distributors including Singer and Softlogic.

Russel’s Wellness showcased Ayurveda-inspired wellness teas and medicinal formulations at Gulfood 2026, attracting strong interest from global importers and a visit by the Hon. Minister, signalling growing international recognition for Sri Lanka’s heritage wellness sector.

The Sri Lanka Export Development Board held a virtual meeting with New Zealand and Sri Lankan high commissions and business representatives to promote Sri Lanka Expo 2026 and boost bilateral trade. Sri Lanka's exports to New Zealand were about USD 31.24m in 2025, led by tea, garments, rubber and edible preparations.

Cabinet approved an updated National Tariff Policy on Nov 3, 2025 after a comprehensive review to improve compliance, clarity and alignment with current economic and fiscal conditions; the revised framework is expected to enhance trade policy coherence and support fiscal objectives.

Dividend · Rs 15.00 · XD Mar 6, 2026

First Interim dividend of LKR 15/share; XD 2026-03-06; record 2026-03-08; payable 2026-03-25; FY ending 31st March 2026