News & market updates

A 31-member delegation led by India's FIEO visited Sri Lanka (July 8–10) to explore new bilateral trade and investment opportunities and formally exchanged an MoU with the National Chamber of Exporters to boost institutional cooperation. Delegates covered pharmaceuticals, engineering, apparel, food/agriculture and infrastructure.

Colombo Port City Economic Commission will invite RFPs for an international university, hospital and school as it shifts from real estate to building institutional foundations; the Commission permits transactions in 14 foreign currencies under a dollarised regime and flags IT talent shortages constraining investment.

The Parliamentary Committee on Public Finance approved a Customs Ordinance resolution and two EDB orders to implement a National Tariff Policy that will reset import duty bands to 0%, 10%, 20% and 30% from 1 April 2026. The reforms include cutting effective ceramic-tile import taxes to 20% by 2029, phasing out para-tariffs by 2029, and updating trade data to support export growth.

President Anura Kumara Dissanayake said the 2027 Budget will prioritise strengthening public healthcare and reducing private treatment costs. Measures include recommencing 26 suspended hospital projects (48 projects now under way), new primary-care 'Arogya Suwa Seva Centres', technology upgrades for state hospitals, ambulance improvements, digital health systems and pharma procurement reforms.

Parliament approved a new four-tier National Tariff Policy (0%, 10%, 20%, 30%) and two export orders covering 8,225 HS codes, replacing the prior 0/15/20% bands. The government also set a phased CESS removal through 2029 to lower intermediate and consumer import costs and support exports.

The Ceylon Chamber of Commerce's Commercial Documents Registration Division has launched a Free Sale Letter service to help Sri Lankan pharmaceutical manufacturers and exporters meet international compliance requirements. The service expands CDRD's trade documentation offerings, including Certificates of Origin and support via the e-DAS system.

The Ceylon Chamber's Commercial Documents Registration Division introduced a Free Sale Letter for pharmaceuticals to expand export documentation support for Sri Lankan pharmaceutical manufacturers and exporters. The division also issues Certificates of Origin and other certified export documents via a 24/7 e-service and e-DAS attestation.

Developing Asia received $644 billion in FDI in 2025 (about 40% of global FDI and over 70% of flows to developing economies), according to UNCTAD. Investment shifted toward South‑East Asia and India (India +44%), with growing flows into semiconductors, digital infrastructure, advanced manufacturing, pharmaceuticals and energy‑transition technologies.

Exhibitor registration for Sri Lanka Expo 2027 is open until 31 July 2026. The expo runs 14–17 Jan 2027 at BMICH with 650 booths across 25 sectors and offers opportunities to meet over 1,500 global buyers.

Colombo Stock Exchange midday: ASPI down 0.17% (37.22 pts) to 22,043.43 and S&P SL20 down 0.15% to 6,157.85. Capital goods led turnover (LKR 46.2m of LKR 216.8m); notable gainers HNB, RCL, SPEN, SDB, NHL and decliners GREG, MELS, JKH, CARS, LOLC.

The Sri Lanka Export Development Board has kept online exhibitor registration for Sri Lanka Expo 2027 open until 31 July 2026. The expo will run 14–17 January 2027 at BMICH with 650 booths and opportunities to meet over 1,500 global buyers across 25 sectors.

CIPM convened a roundtable of 30 stakeholders to address Sri Lanka's widening skills gap, noting shortages across IT, tourism, construction, manufacturing and healthcare and recommending industry-academia partnerships, vocational reforms and upskilling initiatives.

Sri Lanka and Pakistan agreed to boost bilateral trade, investment and entrepreneurship through initiatives including technology exchanges, export facilitation and a planned business forum in Pakistan. Measures include gem & jewellery tech programs, steps to reverse tea export declines, opening pineapple/avocado exports and exploring Pakistani investment in Sri Lankan pharmaceutical manufacturing.

GITA, together with the Indo‑Lanka Chamber of Commerce and Industry, has launched an India Trade Desk in Colombo to provide end-to-end, one-to-one advisory and market-entry support for Sri Lankan firms seeking to expand into India. The service targets SMEs and larger firms across textiles, food processing, ICT/BPM, tourism, pharma, logistics, manufacturing and renewable energy.

Cabinet approved agreements to secure a $450m Indian disaster recovery package (a $350m line of credit — $250m long-term, $100m short-term — plus a $100m grant) to fund Sri Lanka's post-Cyclone Ditwah reconstruction across infrastructure, housing, health, education and water. The government estimates reconstruction needs at $3.5bn.

The International Institute of Health Sciences (IIHS) graduated over 650 healthcare professionals on 24 June 2026, including 227 receiving the first Professional Bachelor's qualifications, as it marks 25 years of training. IIHS says it has trained over 5,000 nurses and more than 2,500 graduates now working overseas.

BookRetreats.com ranked Sri Lanka the world's top trending wellness destination for 2026, recording a 100% year-on-year traffic increase. The ranking spotlights demand for Hela-Ayurveda and luxury wellness resorts, potentially supporting inbound tourism and foreign-exchange earnings.

Adhitya Ayurveda ran a wellness knowledge-sharing program in South Korea with Shriveda Ayurveda Korea led by Dr. Kasun Gunawardhana, covering detoxification, Panchakarma, pulse diagnosis and lifestyle practices. The organiser operates Sri Lankan Ayurvedic retreats including Mangata and Adhitya Ayurveda Colombo as it expands internationally.

Ruhunu Hospital and Karma Fight League signed a multi-event partnership, with Ruhunu as title sponsor for KFL 008 on 18 July at SLECC. The agreement is the first structured long-term private hospital partnership with a combat sports organisation in Sri Lanka and will formalise medical support for events.

Union Bank (UBC) launched the Union Bank Pension Loan offering government and other pensioners up to Rs. 8 million with repayment up to 15 years, low interest and no personal guarantor; benefits include Rs.30,000 of annual PickMe rides, a Rs.7,000 yearly Nawaloka Hospitals health package and a pre-approved credit card.

Opposition Leader Sajith Premadasa urged a whole-of-government, science-based National Climate Resilience strategy, warning of a limited window before a likely strong 2026–27 El Niño and proposing anticipatory governance, reservoir/water management, climate-smart agriculture, early warning systems and a disaster intelligence centre.

Union Bank of Colombo (UBC.N0000) launched the Union Bank Pension Loan allowing government pensioners to borrow up to Rs. 8 million with up to 15-year repayment, low interest, no guarantor and benefits including LKR30,000 annual PickMe rides and a LKR7,000 yearly health package at Nawaloka Hospitals.

IIHS has opened a Biological Foundation Programme for O/L-qualified students offering four pathways (Healthcare, Sports, Health Management, IT in Health) to fast-track progression toward bachelor's degrees and international healthcare and health-technology careers.

Sunshine Holdings, in a JV with Zydus Lifesciences (Zydus Sunshine Lifesciences Pvt Ltd), will build a US$20 million pharmaceutical manufacturing plant on nearly four acres in the BOI zone at Horana to supply Sri Lanka's retail market. The project will focus on local production, technology transfer and job creation under NMRA oversight.

Sunshine Holdings PLC and Zydus Lifesciences formed Zydus Sunshine Lifesciences Pvt Ltd with an investment commitment of over USD 20 million to build a pharmaceutical manufacturing facility at the BOI Horana to boost local production and reduce import reliance.

NCQP 2026 was held on 17 June in Colombo with 2,000+ delegates from 100+ organisations and 450 improvement teams; the Sunil G. Wijesinha QC Circle Excellence Awards went to Team ThreadX (MAS Bodywear) and Team Saviya (Elastomeric Engineering).

A Cabinet-appointed committee reviewing Sri Lanka’s Free Trade Agreements is expected to submit recommendations in July, and an India Trade Desk has been launched to help Sri Lankan firms tap the Indian market. Bilateral trade reached about $5.8bn in 2025, with Sri Lankan exports to India over $1bn and imports $4.3bn.

Lanka Hospitals PLC launched “Hope”, Sri Lanka’s first private-sector Haematology Day Unit at its Blood Cancer Centre, providing same-day chemotherapy, immunotherapy, transfusions and intensive monitoring. The unit is designed to reduce inpatient admissions, lower infection risk and improve patient convenience.

Asiri Central Hospital (Asiri Surgical/Asiri Medical) completed its first successful liver transplant. The milestone enhances the group's advanced-care capabilities and may reduce the need for patients to seek transplant treatment overseas.