News & market updates

Deloitte Sri Lanka held a client session 'From Compliance to Capital' emphasising climate disclosure (SLFRS S1/S2), decarbonisation pathways and sustainable finance as tools to strengthen business resilience and improve access to capital across telecoms, financial services, manufacturing and agriculture.

Sri Lanka will stick to a 5% growth target despite the Central Bank's 100bp policy rate hike to 8.75% and falling consumption; Q1 GDP expanded 5.1%. The rate rise, 27% private credit growth and steep fuel price increases are cited as headwinds, while the IMF has cut its growth forecast to 3%.

National Chamber of Exporters says the Central Bank's new Gazette requiring exporters to convert foreign-currency proceeds by the 10th day of the following month was introduced without industry consultation and may disrupt cash flows, raise costs and hurt competitiveness; members seek flexibility to retain funds for verified FX needs.

UK Trade Envoy Lord Hannett will visit Colombo 17–19 June 2026 to hold talks with government ministers and business leaders to deepen UK–Sri Lanka trade and investment ties and promote use of the UK's Developing Countries Trading Scheme zero-tariff access for Sri Lankan exports. He will engage with exporters including the apparel sector, UK firms operating locally, and stakeholders in clean energy, retail, manufacturing and technology.

Manufacturing PMI rose to 56.6 and Services PMI to 56.9 in May, indicating expansion in both sectors. Manufacturing was driven by food & beverages and textiles, while services growth was led by financial, professional services and IT; outlook buoyed by expected tourist arrivals but risks from the Middle East conflict persist.

Sri Lanka launched the National Export Development Plan (NEDP) 2026–2030 targeting USD 36 billion in export revenue by 2030. The Cabinet-approved plan, prepared by the Ministry and the Export Development Board with ADB support, targets eight priority sectors and upgrades in logistics, customs digitization and SME export readiness.

Colombo market closed flat as the ASPI fell 0.02% to 22,377.29 after an early peak at 22,563.09, while the S&P SL20 rose 0.03% to 6,221.32 on turnover of Rs. 3.85bn. Foreigners were net buyers (Rs. 427.1m); top contributors were JKH, HAYL, DOCK, BREW and BIL, with CARG, CINS, SAMP, NDB and CFIN weighing on the index.

The government presented the National Export Development Plan 2026–2030 to the President, targeting USD 36 billion in export revenue by 2030. The plan names eight priority export sectors (including digital products, electronics, automotive components, processed foods, rubber, minerals and maritime) and sets horizontal enablers such as logistics, trade finance, trade facilitation and ESG capacity building, with ADB technical support.

Sri Lanka launched the National Export Development Plan (NEDP) 2026–2030 targeting USD 36 billion in export revenue by 2030. The plan sets six cross-sector enablers and eight priority sectors — including auto components, minerals, rubber, marine, spices, digital products, electrical/electronics and processed food — to drive export diversification.

Sri Lanka's manufacturing PMI rose to 56.6 in May from 42.6 in April, signaling expansion. The increase was driven by food & beverages and textiles production and supported by more working days, although firms noted a challenging operating environment linked to the Middle East conflict.

The rupee opened stronger, with the USD/LKR spot at Rs.333.00/334.50 (versus Friday’s 335.50/336.00) after the Central Bank cut the period for exporters to convert proceeds to 30 days from 90, earlier pushing the rate to Rs.332.25/333.00.

Brent crude fell about 4.5% to below $83.4 per barrel after the US and Iran confirmed a deal to end the war, triggering global equity gains. Asia-Pacific indices and US futures rose as analysts said lower oil should ease inflation pressure ahead of the US Federal Reserve rate decision.

ASPI jumped 3.43% (743.22 pts) to 22,380.65 as markets rallied on signs of a possible end to the Middle East war, with index-weighted counters SAMP, COMB, JKH, MELS and DIAL among top contributors; turnover exceeded Rs.4bn and foreigners were net buyers (Rs.21.1m).

Volt Charge, part of JAT Holdings PLC, is now Sri Lanka's largest EV charging network with over 80 DC fast chargers and a public network spanning 100+ sites. The network also includes 20 public AC and 3,000+ home chargers, records 18,000+ monthly sessions (~100 MWh/month) and has seen Rs.250 million invested to date.

Sri Lanka GDP grew 5.1% year-on-year in Q1 2026, up from 4.7% in the previous quarter. Growth was led by industry (up 7.2%) with mining +19.5% and construction +16.3%, while services rose 3.4% driven by insurance (+22%), IT/BPM (+16.1%) and financial services (+12.8%); agriculture +1.1%.

Sri Lanka's real GDP grew 5.1% year-on-year in Q1 2026 to Rs. 3,652,503 million (2015 prices). Growth was led by industry (+7.2%)—notably construction (+16.3%) and mining (+19.5%)—while services rose 3.4% (insurance, IT, financial services) and agriculture grew 1.1%.

Sierra Cables PLC reported FY2025/26 revenue of LKR 16 billion and net profit of LKR 2.7 billion, up 73% and 194% year‑on‑year respectively. Export revenue rose 345% to LKR 5.0 billion (31% of group revenue) with expansion into the US market.

The Sri Lanka Business Council UAE held a 35th-anniversary investment forum in Dubai on 11 June that drew 225 UAE business leaders and investors. Colombo Port City presented investment opportunities and speakers encouraged investment in tourism, hospitality, IT, logistics, manufacturing and renewable energy in Sri Lanka.

Sri Lanka will launch the National Export Development Plan (NEDP) 2026–2030 targeting $36 billion in export revenue by 2030, developed by the Export Development Board with ADB technical assistance. The plan sets horizontal enablers (trade facilitation, trade finance, supply chain, ESG) and eight priority verticals including electronics, digital services, processed foods, auto components, rubber, minerals, marine and spices.

Sri Lanka will launch the National Export Development Plan 2026–2030 on 16 June, aiming to lift export revenues to $36 billion by 2030. The EDB, with ADB support, outlines two pillars and eight priority sectors including Auto Components, Minerals, Rubber, Marine, Spices, Digital Products, Electrical & Electronic Components, and Processed Food.

The rupee weakened to Rs. 335/337.50 in the interbank spot market after giving up part of Wednesday's gains (Wednesday close: Rs. 332.25/330). The midweek rebound followed the Central Bank tightening rules for exporters, cutting the conversion window to 30 days from 90.

SAARC CCI President Chandi Raj Dhakal met Yunnan Governor Wang Yubo in Kunming to push for expanded trade, investment and connectivity between South Asia and Yunnan, highlighting opportunities in infrastructure, tourism, logistics, digital industries, renewable energy, agriculture and manufacturing.

Deloitte Sri Lanka held a 27 May 2026 client session urging climate disclosure as a driver of business resilience and access to capital. Speakers covered operationalising SLFRS S1/S2, climate risk and scenario analysis, decarbonisation, assurance-ready data and sustainable finance.

Adamjee Lukmanjee Group hosted the "Legacy of Trust - Customer Forum 2026" on 23 May at Cinnamon Life, Colombo to recognise longstanding and top-performing customers. The 160-year group highlighted its supply of animal feed ingredients, Saviya cement and N-Joy coconut oil to agriculture, livestock and construction sectors.

Hela Apparel Holdings faces trading suspension from June 18 unless it rectifies a non-compliance after an auditor issued a disclaimer on its financials for the year ended March 31, 2025; the company has until June 16 to remedy the issue. Separately, Hela confirmed an $8m divestment of its brand business ($6m upfront, $2m earn-out) but expects only $484,000 residual cash after heavy adjustments.

Sri Lanka will launch the National Export Development Plan 2026–2030 in Colombo on 16 June 2026, targeting USD 36 billion in export revenues by 2030. The plan sets two pillars (Horizontals and Verticals) and names eight priority sectors including Digital Products, Electrical & Electronic Components, Auto Components, Rubber, Minerals, Marine, Spices, and Processed Food & Beverages.

The CBSL cut the mandatory conversion period for export proceeds from 90 days to 30 days, and the rupee strengthened to about Rs. 332.25/333.00 from Rs. 337.00/337.75. The move is intended to accelerate repatriation of export earnings and boost foreign-exchange liquidity to stabilise the market.

BYD topped the Automotive INNOVATIONS Report 2026 as the most innovative automotive group with an innovation index score of 157, the first Chinese automaker to claim the top spot. The ranking cites BYD's in-house tech portfolio (batteries, motors, controllers, semiconductors), 55 innovations including 18 world premieres, and global NEV sales of over 4.6 million in 2025.

ASPI fell 0.4% (85.70 pts) to 21,461.47 as selling pressure reversed early gains; turnover was below Rs.1.7bn and foreign investors were net buyers of Rs.55.9m. Major negative contributors were C T Holdings, Melstacorp, Ambeon, Access Engineering and Central Finance, while John Keells, Chevron Lubricants and Commercial Bank were top turnover names.

The Central Bank of Sri Lanka now requires exporters to convert any residual foreign-currency export proceeds into rupees by the 10th day of the month following receipt under amended Repatriation of Export Proceeds rules. The change replaces the 90-day window and is intended to support FX liquidity amid recent rupee pressure.