News & market updates

Sri Lanka was ranked the most affordable retirement haven in Asia by the Annual Global Retirement Index, with retirees reporting comfortable living for about $2,200/month and some managing on as little as $1,000/month thanks to low housing, food, transport and healthcare costs.

The Export Development Board launched Sri Lanka Expo 2026, a four-day event at BMICH from 18-21 June targeting about 1,500 international buyers and 750+ exhibitors to help boost exports to $36bn by 2030. The Expo will showcase 24 sectors with B2B matchmaking and investor forums to support industrial growth and market access.

Colombo bourse closed the week up 3.45% as the ASPI rose 0.54% yesterday to 23,654.30, with the market gaining about Rs. 264.8 billion in value for the week and daily turnover over Rs. 8.5 billion; top contributors included JKH, COMB, VONE, CARS and NTB.

Rights issue · 1:10 at Rs 9.00 · XD Feb 2, 2026

China's CPI rose to a 34-month high of 0.8% in December while full-year consumer prices were unchanged, even as the PPI fell 1.9% in December and 2.6% for the year, signaling weak demand. Authorities pledged continued support, including possible rate/RRR cuts and 62.5bn yuan in bond funds for a consumer trade-in scheme.

Sri Lankan exports to Saudi Arabia rose 19% in Jan–Sep 2025 versus the same period in 2024, while total bilateral trade increased 9%. Embassy-led trade promotion, business delegations, product launches (eg Ceylon Biscuits Ltd.) and a new Saudi–Sri Lanka Joint Business Council were cited as drivers.

Colombo Stock Exchange ASPI rose 0.54% on Friday and 3.45% over the week, led by gains in John Keells, Commercial Bank, Vallibel One, Carson Cumberbatch and Nations Trust Bank. Market turnover fell to 8.5 billion rupees and Renuka Agri Foods and Sampath Bank recorded crossings.

The Body Shop is running an End of Season Sale with prices up to 50% off across skincare, bath & body, fragrances, makeup and hair care until 2 February 2026. The promotion applies at its Colombo-area flagship and boutique locations (Bagatale Road, Odel Alexandra Place, Kandy City Centre, Colombo City Centre, Havelock City, One Galle Face Mall).

Sri Lanka Expo 2026 will feature 750 exporters and an investor forum targeting 1,500 foreign buyers, investors and media to help boost exports to $36bn by 2030. The event (June 18-21) will showcase 24 product/service categories with thematic pavilions including sustainable/green solutions and ICT, and offer discounted travel and accommodation for qualified buyers.

Singer Sri Lanka PLC (SINS.N0000) has revamped its Maharagama Service Centre with upgraded facilities, a queue management system, AI/ML-driven analytics and a Singer Care App to improve after-sales service and spare-parts access.

Gem Sri Lanka 2026 opened in Colombo (7–9 Jan), featuring over 100 stalls of gemstones and jewellery to promote trade, sourcing and exports. Government officials, including the Prime Minister, highlighted regulatory reforms and import-policy changes expected to increase gemstone volumes and support the sector’s global positioning.

Merchant Bank of Sri Lanka & Finance PLC (MBSL) recalibrated the MBSL Midcap Index effective 1 January 2026, setting the midcap market-cap range at Rs. 8.45 billion–Rs. 84.5 billion and selecting 25 constituents. New inclusions include Sierra Cables, Aitken Spence, Vallibel Finance, Lanka IOC, JAT Holdings and Prime Lands; Citizens Development, CIC, Ceylon Grain Elevators, John Keells, Hayleys Fabric, Teejay Lanka and Watawala Plantations were excluded.

John Keells Holdings PLC led a consortium donating Rs. 400 million to the government's 'Rebuilding Sri Lanka' Fund for Cyclone Ditwah relief; contributors included Nations Trust Bank (Rs.100m), SAGT (Rs.100m), Union Assurance (Rs.50m) and Elephant House (Rs.50m).

Colombo market rose for a ninth straight session as the ASPI gained 1.21% to 23,292.91, with market turnover about Rs. 6.6bn; banking counters led activity and top positive contributors included HNB, COMB, JKH, NDB and SAMP.

John Keells Holdings PLC-led consortium contributed Rs. 400 million to the Government’s ‘Rebuilding Sri Lanka’ Fund for Cyclone Ditwah relief; contributions included Nations Trust Bank Rs.100m, SAGT Rs.100m and Rs.50m each from Lanka Marine, Jaykay Marketing, Union Assurance and Elephant House.

NOLIMIT opened its 28th store in Jaffna. The four-story outlet offers menswear, womenswear, kids wear, homeware, cosmetics and more, and the company says it plans further store openings across Sri Lanka.

Ceylon Petroleum raised most fuel prices effective midnight Jan 05, 2026: Octane 95 to LKR 340/l (from 335), Auto Diesel to LKR 279/l (from 277), Super Diesel to LKR 323/l (from 318), Kerosene to LKR 182/l (from 180); Octane 92 remains at LKR 292/l.

UK bans adverts for less healthy food and drinks on TV before 9pm and online at all times, effective today; measures are projected to remove up to 7.2 billion calories/year and deliver £2 billion in long-term health benefits. The plan also extends the Soft Drinks Levy to sugary milk drinks, restricts fast-food outlets near schools, and bans high-caffeine energy drinks for under-16s.

Sri Lanka opened a pavilion at the Muscat Festival on 1 January 2026 to promote tourism and Sri Lankan goods, featuring 10 stalls showcasing tea, jewellery, cosmetics, batik and traditional food. The month-long festival is Oman’s largest, drew over 4 million visitors last year and includes cultural performances and a fashion show.

Sri Lanka Customs collected Rs2,551bn in 2025, exceeding a revised target of Rs2,241bn, though December collections missed the monthly estimate (Rs276.7bn vs estimate Rs331bn). Officials cite stronger enforcement, improved valuation, rebounding imports (notably vehicles) and rupee depreciation as drivers, making Customs a top Treasury revenue source under the IMF program.

Ferentino Tyres says it commands a 75% value share of Sri Lanka’s OEM tyre market. The company names partners including Lanka Ashok Leyland among its OEM customers and plans to expand into international markets.

Ceylon Cold Stores PLC (CCS.N0000) won the Winner Award at the Sri Lanka National Quality Awards 2023 in the Large, Manufacturing category. The SLSI-presented accolade recognizes organisational and manufacturing excellence and reinforces CCS's leadership in Sri Lanka's FMCG sector.

Ferentino Tyre Corporation says it holds a 75% value share of Sri Lanka's OEM tyre market. The company lists partners including Lanka Ashok Leyland and says it plans to strengthen its presence in international markets.

SPAR Group South Africa pledged Rs. 35 million to the Rebuilding Sri Lanka Fund to support infrastructure restoration, displaced families and livelihoods after Cyclone Ditwah. SPAR Sri Lanka (a CBL–SPAR South Africa collaboration) also mobilised its retail and supply chain to ensure access to essentials.

Headline inflation (CCPI YoY) remained steady at 2.1% in December 2025, unchanged from October and November, the CBSL said. Month-on-month CCPI rose 1.26% in December—food contributed 1.25ppt amid cyclone-related supply disruptions—and core inflation edged up to 2.7%.

SPAR Group South Africa pledged Rs. 35 million to the Rebuild Sri Lanka Fund to support recovery after Cyclone Ditwah, while SPAR Sri Lanka mobilised its retail and supply chain network to restore infrastructure, assist displaced families and ensure access to essentials.

ASPI rose 42% in 2025, lifting market capitalization 41.67% to Rs. 8.07 trillion and generating Rs. 2.4 trillion in value. Final-day turnover exceeded Rs. 4.6 billion, three firms (CALH, JFP, WTS) listed during the year, and JKH, SFCL, ACL, SAMP and HASU were top contributors.

Sri Lanka's annual inflation was 2.1% in the 12 months to December 2025, with prices up 1.2% in December and food prices spiking; the rupee depreciated to about 309.5/USD by year-end amid large central bank dollar purchases and a deflationary policy stance.