News & market updates

ASPI fell 0.64% to 19,786 after briefly crossing the 20,000 mark, with turnover of Rs.4.53bn and foreign net outflow of Rs.8.2m. Banking stocks and conglomerates weighed on the market, with JKH, MELS, NDB, AEL and BUKI among top negative contributors while DFCC and Royal Ceramics saw gains.

Fonterra Brands Lanka, with dairy peers including Lion Brewery (LION.N0000) and Ceylon Cold Stores (CCS.N0000), handed over Sri Lanka’s first National Competency Standard for dairy machine operators to TVEC/NAITA, enabling nationwide vocational training and formal recognition for operators.

DB Automation opened a Zebra Experience Center in Bambalapitiya, Colombo, offering an interactive showroom of Zebra Technologies solutions for retail, healthcare, hospitality, logistics and manufacturing. The center provides live demos and trials of queue-free billing, high-speed barcode scanners, patient data management, inspection and automation systems.

Evolution Auto unveiled Sri Lanka’s largest EV lineup at Motorshow 2025 — seven new models across five global brands (AVATR, XPENG, IM Motors, Riddara, KYC) — and announced expanded showrooms, a Peliyagoda multi-brand workshop and multi-year battery/vehicle warranties.

The Shoppes at City of Dreams launched its premium luxury retail component in Colombo and will open to the public tomorrow; Hatton National Bank (HNB.N0000) will open a flagship branch on the seventh floor as part of the development.

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.

CBSL said deflation eased for a fifth consecutive month in July, with CCPI YoY at -0.3% (June -0.6%); food inflation moderated to 1.5% YoY and core inflation edged up to 1.6%.

Brand Finance values Sri Lanka’s top 100 brands at LKR559.4bn in 2025, with banking the best-performing sector (Bank of Ceylon #1); Commercial Bank (LKR46.6bn), Dialog (LKR35.4bn) and Keells (LKR22.7bn) rank among the top brands.

Colombo market closed July with ASPI up 9% for the month (ASPI YTD +23%) and S&P SL20 up 7.7% (YTD +18.5%), with average daily turnover in July at Rs.7.16bn. Banking-led activity saw HAYL, DFCC, BIL, NDB and COCR as key contributors while foreigners were net sellers (Rs.134m).

Brand Finance's Sri Lanka 100 2025 ranks Bank of Ceylon as the country's most valuable brand at Rs.57.4 billion. Keells emerges as the strongest brand (BSI 90.2, AAA+), while Commercial Bank (Rs.46.6b) and Dialog (Rs.35.4b) take second and third places.

Sri Lanka's consumer prices fell 0.3% in the 12 months to July 2025, with July down 0.2%, and inflation totaling 2.9% since September 2022 (34 months). The central bank largely ran a deflationary policy, briefly expanded money supply in late 2024, and analysts warn premature rate cuts or sterilizing inflows could drain reserves and weaken the rupee.

Colombo CCPI was -0.3% y/y in July 2025, up from -0.6% in June 2025. Food inflation fell to 1.5% (contributing +0.49ppt) while non-food inflation rose to -1.2% (contributing -0.82ppt); housing, electricity and transport were major downward contributors, with education and health rising.

Colombo Stock Exchange closed higher, ASPI up 0.39% (76.33 pts) at 19,642.48 with turnover LKR 5.66bn. John Keells fell 20 cents to LKR 23.90 amid negative publicity, while Hayleys, DFCC, Browns Investments and NDB were among the top contributors.

Colombo market extended its positive streak to nine days as the ASPI rose about 34 points (0.17%) on turnover of Rs.5.28 billion. Key contributors included MELS, SEYB, CTC, ACL and SAMP; ACL rose Rs.6.50 while Access Engineering fell 30 cents, and foreigners were net sellers of Rs.36.2m.

Colombo bourse closed marginally higher as the ASPI rose 0.17% to 19,566.15, led by capital goods and bank stocks. John Keells reported a Rs.803.7mn loss in the June quarter and Ceylon Cold Stores' June-quarter net fell 7% to Rs.1,092.7mn.

John Keells Holdings reported Q1 FY2025/26 group revenue of Rs.114.15 billion and EBITDA of Rs.12.97 billion, up 64% and 69% year-on-year respectively, driven by Retail and Transportation. Nations Trust Bank (part of the group) posted solid profitability growth from higher loan volumes and reduced impairments.

Colombo ASPI rose 0.07% to 19,532.20 while the S&P SL20 fell 0.38% to 5,752.46, turnover rose to Rs 7.5 billion; ACL Cables, Melstacorp, Hayleys, Central Finance and Cargills were notable gainers.

CH 17 and The Expertin have formed a strategic partnership to enhance CRM and loyalty solutions across Sri Lanka. The collaboration combines CH 17's loyalty technology with The Expertin's business transformation services to serve retail, hospitality and financial services clients.

CA Sri Lanka has committed to fully adopt the IFRS/ISSB Sustainability Disclosure Standards (SLFRS S1 and S2), with phased implementation from January 2025 and mandatory compliance for the first 100 Main Board CSE-listed entities by 2025, expanding to full rollout by 2030.

Colombo market opened higher as the ASPI rose 0.26% (50 points) to close at 19,518, with turnover around Rs. 6.16 billion. Foreign investors were net buyers (Rs. 30.2m) and gains were led by Royal Ceramics, Melstacorp, Hemas, L B Finance and C T Holdings, with Capital Goods, Banking and Diversified Financials driving turnover.

CBSL launched a countrywide "Shaping the Future through Digital Payments" campaign, holding events 1-2 Aug at the Dambulla Dedicated Economic Centre to boost digital payments adoption. Banks, finance firms, mobile-money operators and LankaPay will participate; attendees can get account setup, mobile-app registration, free CRIB reports and merchant LANKAQR onboarding.

First Capital Holdings PLC held its Mid-Year Outlook Investor Forum on 17 July, extending its LKR/USD target to 300–310 to December 2025 and setting an ASPI target of 18,000–19,000 for 2025. The forum also forecast mild rupee depreciation to 305–315 in H1 2026, ASPI 21,000–22,000 in 2026, and AWPR easing to 7.5–8.5% before edging up next year.

The National Minimum Wage of Workers Act was amended to set a national minimum monthly wage of Rs.30,000 from 1 Jan 2026 and Rs.27,000 from 1 Apr–31 Dec this year (daily rates Rs.1,200 and Rs.1,080). The law includes budgetary relief allowances, forbids wage reductions that negate the increase, and empowers the Commissioner-General to direct employers (including contractors) to implement the rise.

The Central Bank of Sri Lanka is running a digital payments promotion event in Dambulla on 1–2 Aug 2025 to provide account opening, mobile payment registration, LANKAQR merchant onboarding and free CRIB credit reports, with banks, finance companies, mobile operators and LankaPay participating.

Cycle Brands launched four new fragrances and unveiled its official website at 'Scent & Sparkles 2025', expanding its product range and enabling customers to purchase online.

First Capital Holdings PLC held its Mid‑Year Outlook Investor Forum on 17 July 2025, forecasting an LKR/USD target of 300–310 to Dec 2025, ASPI 18,000–19,000 for 2025 (21,000–22,000 in 2026) and AWPR down to 7.5%–8.5% after a likely 25bp cut. The virtual forum drew 900+ registrations, was run in Sinhala, Tamil and English, and featured panelists from Hemas and Access Engineering.

Maliban Biscuit Manufactories and Thailand’s CP Group held a follow-up business meeting in Bangkok on 22 July to explore export and distribution partnerships; CPF expressed strong interest in several Maliban biscuits and chocolate products.

Lassana Flora opened Sri Lanka’s first floral outlet in the arrival terminal at Bandaranaike International Airport, offering round-the-clock fresh bouquets, customised pre-orders online and immediate purchase at the BIA outlet.

WCIC Northern Chapter held a full-day workshop on "Importance of Packaging" on 23 July with UNIDO support to train SMEs and entrepreneurs in the Northern Province on packaging for safety, transport and visual merchandising.

ASPI rose 136.16 points (2%) to close at 19,379 on turnover of Rs.6.21bn, with banks dominating activity. CINS, CFIN, NDB, COMB and CTC were top positive contributors; NDB rose, DFCC fell and Ambeon (TAP) gained.