Embilipitiya Stores Tool & Ceramic Manufacturing (Eagle Group affiliate) was awarded ISO 9001:2015 certification for design, manufacturing and marketing of sanitaryware, tile mortar and wire‑based construction products. The certification followed an SGS Lanka audit and the company says it will use it to boost quality and expand local and export markets.
Sri Lanka unveiled South Asia's first solar hybrid bakery oven (solar + biogas) on 22 May, aimed at replacing fossil-fuel baking and supporting sustainable livelihoods and reduced import reliance. The project, led by Incitare, GRFC, German Tech Kilinochchi and GIZ, includes donations, local production and training.
Renewable EnergyFuel & Energy PricesTourismExporters
Tokyo Cement Group reported Q4 turnover of Rs.17,623mn (+36% YoY) and PAT of Rs.577mn; for FY it posted turnover of Rs.61,011mn (+22%) and PAT of Rs.2,580mn, citing currency depreciation and higher material and fuel costs that weighed on margins.
Rupee & ForexFuel & Energy PricesConstruction Activity
Haycarb PLC reported a 5% rise in quarterly profit to Rs 1.42 billion for the quarter ended March 31, 2026, with consolidated revenue up 67% to Rs 19.7 billion. Cost of sales rose 89% to Rs 16.2 billion, finance costs nearly doubled to Rs 485.7m and tax expense jumped to Rs 616.6m.
Colombo Stock Exchange closed higher, with the ASPI up 1.98% to 22,364.77, as rupee stabilisation and lower interest rates boosted investor confidence. Ceylon Cold Stores and Hemas posted strong quarterly profits and John Keells declared a final dividend; Dialog, Commercial Bank and Sampath gained while hSenid and Dipped Products fell.
Sri Lanka's total exports reached US$1,380.93m in April 2026 (up 6% y/y) and US$5,784.38m in Jan–Apr 2026 (up 4.3% y/y); merchandise exports rose 9.87% in April while services exports, led by ICT/BPM and financial services, also expanded.
Sri Lanka's merchandise exports rose 9.87% to $1,063.77m in April 2026. Growth was led by coconut-based products (up 23.49% to $92.17m, with activated carbon +58.32%), rubber products and processed food & beverages, while tea fell 6.82% and apparel fell 4.88%.
JAAF said Sri Lanka apparel exports fell 4.72% in April 2026 to US$328.15m and were down 7.47% to US$1.53bn for Jan–Apr 2026. The association urged policy consistency, energy cost reforms, trade facilitation, skills development and market diversification to restore competitiveness and target US$5bn.
Sri Lanka's apparel exports fell 4.72% YoY to $328.15m in April, and were down 7.47% YoY to $1.53bn for Jan–April. The JAAF said fundamentals remain strong but called for coordinated policy support, cost reform and market diversification to reach a $5bn target.
Hemas Holdings (HHL) reported record FY2025/26 results with group earnings of Rs.8.92 bn (up 10.7% YoY) and revenue of Rs.127.4 bn (up 8%). The group has earmarked over $100m for investments over the next four years and expects an FY27 acquisition to raise international revenue to 10% from 3%.
BOI Acting Chairman Dr. Sulakshana Jayawardena unveiled a pipeline of 30 structured investment projects across manufacturing, logistics, tourism and infrastructure aimed at Vietnamese investors. He said Sri Lanka has regained macro stability with GDP growth of 5% in 2024–25 and FDI rising to $1.063bn in 2025 (target $1.5bn in 2026).
Pelwatte Dairy Industries’ subsidiary Pelwatte Foods will invest approximately Rs.1.86 billion to build a Greenfield liquid milk manufacturing facility at Kurunegala, with construction starting July 2026 and commercial operations expected by July 2027.
PodHUB and Dongfeng Motor Corporation (via Euro Motors) launched 'Driving Tomorrow', a podcast on Sri Lanka's shift to electric mobility; the debut episode features Omal Balapatabendi describing how EVs removed dependence on fuel queues and restored daily mobility.
The Ceylon Chamber of Commerce delegation led by Chairman Krishan Balendra held high-level economic engagements in Mumbai on 13–14 May, culminating in the renewal of an MoU with the Indian Merchants' Chamber. Discussions targeted technology, manufacturing, healthcare, renewable energy and digital transformation to boost bilateral trade and investment.
IT & DigitalRenewable EnergyHealthcare & PharmaExporters
Samsung Electronics agreed to distribute KRW 40 trillion (~$26.6bn) in bonuses to its semiconductor division — an average of about $339,000 per employee, paid as 10.5% of profit in stock plus 1.5% cash; the deal could run 10 years and payouts occur early 2027 if the union approves.
The Free Trade Zone Manufacturers’ Association urges the government to zero-rate locally supplied inputs to BOI exporters to remove an 18% VAT that currently disadvantages domestic suppliers. They propose a gazette notification under existing VAT law to equalise local and import pricing and help retain foreign exchange.
ASPI fell 4.26% for the week but closed Friday up 0.44% at 21,929.64, with market turnover near Rs.2.2bn and net foreign outflow of Rs.11.6m; top positive contributors were JKH, DOCK, MELS, RICH and SAMP amid cautious investors ahead of the CBSL policy meeting.
Samsung Electronics retained its position as the world's No.1 gaming monitor brand for the seventh consecutive year, capturing an 18.9% revenue share of the global gaming monitor market in 2025. It also led the OLED gaming monitor segment with a 26% share and unveiled a new Odyssey lineup including a glasses-free 3D model and high-refresh-rate/6K displays.
Sri Lanka's Board of Investment pitched a pipeline of 30 project-ready opportunities to Vietnamese investors as the economy rebounds — GDP grew 5.0% in 2024 and 2025 and FDI rose to US$1.063bn in 2025. Projects span manufacturing, logistics and port services, tourism, pharma, and mixed infrastructure developments.
Colombo Stock Exchange traded higher midday as the ASPI rose 0.24% (52.94 pts) to 21,886 with turnover Rs.807m, led by gains in John Keells and DFCC. Lanka Ceramic declared a final dividend of Rs.6.40 and Swisstek recommended a final dividend of Rs.0.40 per share.
CT Smith says Sri Lanka's current pressures are driven mainly by an external energy shock, with near-term multilateral inflows of about $1.38–1.4bn (IMF $700m, ADB $480m, World Bank $200m) expected to help stabilize the rupee. The firm notes the rupee has weakened ~6.2% YTD to Rs329.64, inflation rose to 5.4% in April, and the CBSL policy decision is due 26 May (base case: rates held at 7.75%).
Interest RatesRupee & ForexFuel & Energy PricesTourism
UNP says the Sri Lankan rupee has depreciated from Rs.292 to Rs.354 in the 20 months since the current government took office, blaming a failure to continue the previous economic programme and external pressures including the Middle East war, higher shipping costs and a stronger US dollar. The party warned exporters may gain while workers and the public face higher living costs, noting the apparel sector views depreciation positively.
Rupee & ForexExporters
Daily FT·May 22, 2026·Management or board change·PACKPositive
Ex-Pack Corrugated Cartons PLC appointed Hassan Kassim to its board as a Non-Executive, Non-Independent Director. Kassim is Deputy Chairman and Group Director of Aberdeen Holdings and serves as Managing Director of Amana Takaful PLC, bringing cross-sector leadership experience.
EDB launched an awareness and hands-on training programme on 19 May 2026 to boost Sri Lanka's light engineering exports, aiming to raise revenue from $205m in 2025 to $400m by 2030. The joint initiative with FDSI and the Government Factory covered export strategy, foundry skills, sustainability and quality assurance.
IMF mission chief Evan Papageorgiou urged Sri Lanka to continue allowing the economy to adjust as the rupee has depreciated sharply ahead of IMF Board approval of the fifth and sixth EFF reviews next week (May 27). He noted authorities have made progress restoring macro stability, rebuilding reserves and strengthening confidence.
Hellmann Worldwide Logistics and MAS Holdings will develop an 8,000+ sqm built-to-suit fashion logistics hub in Kimbulapitiya, six km from Bandaranaike Airport, to serve as Hellmann’s South Asia fashion hub. The facility features dual-zone humidity/climate control, solar panels and scalable regional distribution capabilities.
The Joint Apparel Association Forum (JAAF) said the Sri Lankan rupee's 4.8% depreciation against the US dollar reflects wider global pressures (Middle East conflict, higher fuel and shipping costs) rather than domestic weakness, and that a weaker rupee can boost apparel export competitiveness.
CBSL Governor Nandalal Weerasinghe defended Sri Lanka’s flexible exchange rate at a Committee on Public Finance hearing, saying rupee depreciation does not change external debt in dollar terms and that exchange-rate flexibility aids reserve rebuilding and competitiveness. He urged strengthening dollar earnings via exports and remittances and stressed the CBSL's mandate on price and financial stability.