News & market updates

Teejay Lanka reported PAT of Rs. 54.7m, a 98% YoY decline, on revenue of Rs. 60.04bn (‑10% YoY) as weak global textile demand, US tariffs, pricing pressure and lower volumes hit margins. Cash was Rs. 8.3bn and NAV/share rose to Rs. 44.91 despite restructuring costs and provisions.

Sri Lanka, led by Trade Minister Wasantha Samarasinghe, participated in the 10th China–South Asia Exposition and 30th Kunming Import Fair (11–16 June 2026), showcasing 100 booths and securing export partnerships including an MoU to promote Sri Lankan beverages in China. Discussions also covered access to Kunming bonded-zone free warehouses to boost supply-chain connectivity.

The Export Development Board convened stakeholders to tackle a coconut fibre shortage that is disrupting production and raising costs even as 2025 coconut coir exports rose to about $294m (22.5% growth). Discussions focused on short-term relief, supply-chain regulation and policy measures to stabilise raw-material availability and support exporters.

The Condominium Developers Association of Sri Lanka re-elected Pinsiri Fernando as chairman at its 12th AGM on 23 June 2026 and appointed an executive committee that includes Roderick David (Overseas Realty), Aelian Gunawardena (JAT Property Group) and Brahmanage Premalal (Prime Lands).

The Thailand–Sri Lanka Business Forum centred on implementing the Sri Lanka–Thailand FTA to boost trade and investment after bilateral trade reached USD 649m in 2025 (+48% vs 2024). Delegates highlighted opportunities in logistics, manufacturing, food and agriculture, IT, healthcare and tourism and urged streamlined customs and predictable FTA implementation.

Three Sinha Industries won the Gold Award for “Best Stall with Locally Assembled Products” at the INCO 2026 exhibition. The recognition highlights the company’s focus on local manufacturing, engineering solutions and solar energy products, reinforcing its role in Sri Lanka’s manufacturing and construction sectors.

Colombo market fell 0.22% as the ASPI closed at 22,208.58 with turnover near Rs.1.2bn and foreign net outflows of Rs.130.6m. Main negative contributors included SAMP, JKH, LOFC, GRAN and RICH, while SPEN, BOGA and HAYC recorded gains.

Sri Lanka's total exports for Jan–May 2026 reached US$7,393.39 million (+7.56% YoY), with May exports of US$1,570.64 million (+18.34% YoY). Growth was broad-based across merchandise and services, led by apparel, coconut products, rubber gloves, electrical/electronic components and ICT/BPM, while tea slipped marginally.

Sri Lanka's goods and services exports rose 18.3% year-on-year in May to US$1,570.6 million, with merchandise at US$1,223.5m and services US$347.2m. The EDB reported estimated export earnings of US$7,393.4m (+7.6% YTD) and launched the NEDP 2026–2030.

Sri Lanka's apparel and textile exports rose 7.96% in May 2026 to US$394.14m, led by a 15.36% increase in US shipments to US$149.96m. The sector now faces a critical US Trade Representative 301 review that could impose a 12.5% tariff unless Sri Lanka secures a fairer outcome; a public hearing is set for 7 July.

Teejay Lanka (TJL.N0000) reported PAT of LKR 54.7 million, a 98% YoY decline, on revenue of LKR 60.04 billion (-10% YoY) and gross profit down 36%. The deterioration was driven by weak global textile demand, US reciprocal tariffs, pricing pressure, lower volumes and higher rupee‑denominated costs; cash stood at LKR 8.3bn and NAV/share rose to LKR 44.91.

Apparel and textile exports rose 7.96% YoY to $394.14m in May 2026, led by a 15.36% jump in US shipments to $149.96m. The sector is seeking tariff parity as the US Section 301 review could assign Sri Lanka a 12.5% tariff, with a public hearing on 7 July.

First Capital Research: aggregate earnings of 271 listed companies fell 11.4% YoY in the March 2026 quarter (third straight quarter), but underlying earnings rose 30.1% YoY after adjusting for major one-offs. Food, Beverage & Tobacco dragged the aggregate result while retailing and telecom posted strong gains (e.g. UML, DIAL, SLTL, SINS).

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.

SJB MP Harsha de Silva urged the government to conclude the Economic and Technology Cooperation Agreement (ETCA) with India to integrate Sri Lankan firms into Indian value chains and attract FDI. He warned delays risk missing India’s growth, called for services-sector safeguards and urged resolution of non-tariff barriers such as certification and logistics.

JAT Holdings PLC has begun re-entering Australia with the Mirotone brand, dispatching the first shipment within seven months of completing its October 2025 acquisition of Mirotone NZ Ltd. Initial focus is Queensland with secured returning customers and a phased rollout to other states to boost international revenue.

Colombo Stock Exchange closed lower as the ASPI fell 0.22% (47.91 pts) to 22,208.58 with turnover Rs1.195bn. Galadari Hotels (GHLL) revised its Galadari Hotel Colombo refurbishment reopening to early Q4 2026; its shares were down 1.84% at Rs16.00.

Colombo Stock Exchange was flat in Wednesday intraday trading: ASPI down 0.02% at 22,252.79, S&P SL20 at 6,193.16 and turnover Rs 406 million, with materials leading turnover at Rs 88.6 million. Diesel & Motor Engineering declared a final dividend of Rs 40 per share; SANASA Life plans to raise up to Rs 500 million via Tier II debentures.

The Thailand–Sri Lanka Business Forum highlighted opportunities from the new Sri Lanka–Thailand FTA, with bilateral trade at USD 649m in 2025 (up 48%) and commitments to boost supply chains, investment and trade across food processing, logistics, IT, healthcare, tourism and manufacturing.

Dilmah Ceylon Tea Co chairman backed the National Export Development Plan to raise exports to $36bn by 2030, urging a shift to premium, quality-focused exports rather than competing on volume. He called for investment in testing, traceability and trade deals; CEAT Kelani urged policy consistency and supply-chain fixes.

Masterwork Group GM Sales Maxen Liu said Masterwork regards Sri Lanka as one of its fastest-growing markets and is promoting automation, AI-driven smart-factory solutions and rooftop solar to improve efficiency and sustainability in the printing and packaging sector.

The Sri Lanka Export Development Board ran a Technical Exposure and Capacity Building Program alongside THAIFEX–ANUGA ASIA 2026 (24–31 May) in Bangkok, taking 11 export-ready Sri Lankan food & beverage SMEs to gain market, packaging and marketing insights and meet Thai industry bodies.

The ASPI edged up 0.01% to 22,256.49 with turnover above Rs.1.56bn and foreign investors net-selling Rs.225mn. Hemas, NDB and Hayleys Fibre were top turnover contributors (Hemas and Hayleys up, Panasian Power down).

Colombo's ASPI fell 0.48% to 22,253.52 as investor sentiment soured over renewed Middle East peace concerns. Only 51 stocks rose vs 164 declines; turnover was ~Rs1.2bn and foreign investors were net sellers of Rs154.6m; main negative contributors were JKH, SPEN, DFCC, COMB and ACL.

The National Chamber of Exporters warns unresolved regulatory, operational and policy bottlenecks could hamper Sri Lanka's US$36bn export target by 2030; total exports were US$4.31bn in Q1 2026 (up 1.59% y/y). Sectors including coconut, floriculture, minerals, boat-building and logistics seek digitised single-window clearances, labour import mechanisms and royalty/licence reforms.

JAT Holdings PLC has commenced re-entry of the acquired Mirotone brand into Australia via Mirotone Australia Pty Ltd, seven months after completing the Mirotone acquisition in October 2025, securing initial customers in Queensland.

The Industries Ministry has launched a six-month reform to rewrite the Industrial Development Board's founding Act for the first time in 57 years and to overhaul SME policy and restructure institutions to realign industrial development and boost firm management capacity.

Sri Lanka will enact key reforms within the next 90 days, including changes to the BOI and EDB and tabling the Investment Protection Act and PPP Bills to attract investment and boost exports. The IMF says a clear PPP Act is crucial for governance, while labour reform timing is uncertain.

The CSE added ACL Cables, CIC Holdings and the voting shares of Commercial Bank to the S&P SL20 and removed LB Finance, with the changes effective 22 June.

Senok Trade Combine handed over a fleet of Foton Tunland G7 double-cab vehicles to NEM Construction, with the locally assembled units delivered from Senok’s Western Automobile Assembly in Kurunegala, underscoring support for construction mobility and after-sales services.