News & market updates

The Cabinet approved plans to draft Sri Lanka’s first inbound labour migration policy to regulate recruitment and oversight of foreign skilled and semi-skilled workers; a Steering Committee will be appointed to prepare the draft framework to address sectoral labour shortages and centralise monitoring.

Sri Lankan rupee depreciated further, with the US dollar selling rate rising to Rs. 354.03 (buying Rs. 342.63), surpassing Rs. 350 for the first time since March 2023. The currency has come under pressure amid global and domestic factors, including uncertainty linked to the ongoing Middle East conflict.

Sri Lanka's rupee has fallen 4.6% this month and slid to 334.52 per dollar, which officials attribute to speculation, a six-fold surge in the fuel import bill, and outflows from government securities and the stock market.

Colombo Stock Exchange rose as the ASPI gained 0.21% to 21,833, with banks leading turnover at Rs.599.8 million and the rupee weakening to Rs.352.50. Amana Bank announced a registered address change effective May 19, 2026; its shares closed up 1.85% at Rs.27.50.

The Automobile Industry Council unveiled a new handcrafted 'Praying Hands' industry award that honors unseen sacrifice; an Honorary Lifetime Achievement Trophy will be awarded to no more than five recipients each year. The trophies are forged at over 1200°C with bespoke design details linking them to the automotive sector.

Colombo Stock Exchange rose with ASPI up 0.75% (164.01 pts) to 21,953.06 and S&P SL20 up 0.71% to 6,076.69; market turnover was LKR 1.014 billion, led by banks (LKR 296.2m). Central Industries declared a final dividend of LKR 6.00/share and its shares were up 3.21% at LKR 224.75.

JAAF said the Sri Lankan rupee's recent 4.8% depreciation reflects global pressures (Middle East conflict, higher fuel and shipping costs) rather than domestic weakness, and that a managed weaker rupee can boost apparel export competitiveness, jobs and FX earnings.

Sri Lanka shares fell, with the ASPI down 1.54% to 21,954.92 and the S&P SL20 down 1.28% to 6,069.81. Capital goods led turnover at 956.7 million rupees; banks including Sampath, Commercial Bank and DFCC weighed on the index while Union Chemicals, LOLC Finance and Aitken Spence gained.

Colombo market closed marginally lower, with the ASPI down 0.07% at 22,298.07 while foreign investors were net buyers with inflows of over Rs.50 million. JKH.N0000, RICH.N0000, CIC.N0000, SAMP.N0000 and NDB.N0000 were among the top negative contributors; capital goods led turnover and banking plus food, beverage & tobacco made up 27% of turnover.

The Export Development Board launched an awareness and hands-on training programme for exporters and potential exporters in the light engineering sector on 19 May 2026, aiming to boost competitiveness as exports stood at USD 205 million in 2025 with a target of USD 400 million by 2030. The programme covered export/business topics and technical foundry training, including simulation, energy efficiency, quality assurance and pollution control.

Centre for a Smart Future warned the government that Sri Lanka's trade, export and FDI reform agenda lacks ambition and urgency, risking greater economic pain as global conditions worsen. It urged rapid implementation of the Export Development Plan, a coherent FDI strategy and operationalising the Economic Commission.

The ASPI fell 2.59% (592.28 points) to 22,313.47 — its third-largest single-day points decline — as the CSE closed sharply lower with turnover nearly Rs.4.9bn and foreign net outflow of Rs.114.3m. Key negative contributors included John Keells, RIL Property, Hayleys, Commercial Bank and Colombo Dockyard while capital goods and banking sectors led turnover and losses.

Colombo Stock Exchange closed slightly lower—ASPI down 0.07% at 22,298 and S&P SL20 down 0.21% at 6,148, with turnover Rs.2.32bn. Top contributors included Dialog, Vallibel One, Colombo Dockyard and Browns; Singer reported Q4 profit up 77% to Rs.2.48bn and Union Chemicals declared a Rs.44/share dividend.

Sri Lanka's manufacturing PMI fell to 42.6 in April from 66.7 in March, signaling a contraction. CBSL said declines in new orders, production and employment were driven by fading festive demand, fewer working days and seasonal layoffs, while suppliers' delivery times lengthened due to holiday disruptions and West Asia conflict.

Dividend · Rs 44.00 · XD Jun 15, 2026

Final dividend of LKR 44/share; XD 2026-06-15; record 2026-06-15; payable 2026-07-03; FY 25TH DECEMBER 2025

Dipped Products PLC inaugurated a Rs. 2.3 billion expansion at its Kottawa facility, adding two advanced glove dipping plants, an ETP and a high-efficiency steam boiler with robotic automation to boost high-value glove exports. Parent Hayleys PLC is positioned to benefit from higher export volumes and FX inflows.

The Ministry of Energy and BOI issued a Request for Information (23 Apr 2026) inviting investors for green hydrogen and green ammonia projects, targeting $1bn annual export revenue by 2030 and 70% renewable electricity by 2030. The non-binding RFI window closes on 5 June 2026.

Asian stocks fell as drone attacks in the Gulf pushed Brent above $111/bbl and global bond yields higher (US 10-year ~4.63%), raising inflation and tightening risks; Nvidia and major retail earnings this week will test equity resilience.

Central Bank Governor told Parliament that increased imports—especially petroleum by the state fuel retailer—and slower tourism have pressured foreign exchange, contributing to a 4.5% fall in the rupee through May 15. He said oil import bills rose sharply while exports have not kept pace, though remittances are holding up.

Dipped Products PLC (DIPD.N0000) inaugurated a Rs. 2.3 billion expansion at its Kottawa facility to boost automated high-value glove production. The project—by Hayleys PLC’s subsidiary—adds advanced robotic dipping lines, a 2,000 m3/day ETP and a high-efficiency boiler to support exports and sustainability.

Zellers ran an AI-powered Avurudu Kumara and Kumariya contest with over 450 entries and a two-hour live voting finale, crowning Contestant 116 (Anji) and Contestant 377 (Ivory Cocoa) as winners; the relaunched Maliban brand used animated Facebook finalists to boost engagement.

The Export Development Board and Control Union Sri Lanka held an awareness workshop on 12 May 2026 to brief coffee and wood-product stakeholders on EU Deforestation Regulation compliance and traceability requirements to support export readiness to EU markets.

Delight Trust Engineering (Pvt) Ltd was recognised with the Platinum Excellence in Engineering Services & Operational Reliability Award at the Platinum Excellence Awards 2026. The company provides construction and interior solutions including fit-outs, aluminium/glass works and customised furniture for commercial and banking clients.

Energy Ministry and the BOI issued an RFI on 23 April 2026 inviting domestic and international investors to develop green hydrogen and green ammonia projects in Sri Lanka, targeting $1 billion in annual export revenue by 2030. The non-binding RFI (open to 5 June 2026) covers production, storage, export terminals and component manufacturing and notes potential BOI facilitation and incentives.

The Colombo ASPI fell 0.69% (158.23 pts) for the week while net foreign selling totaled Rs. 579.98 million. Turnover was over Rs. 2.8 billion; capital goods led turnover (38%) and banks plus diversified financials contributed 28%, with COMB and HUNT among top positive contributors.

Sri Lanka must pivot its export strategy toward India after US tariffs and the EU–India FTA eroded Western market advantages; Sri Lanka exported $1.07bn to India in 2024 versus $4.32bn in imports, and February 2026 exports rose 48% YoY to $264m.

The Sri Lankan rupee has fallen more than 5% so far this year, risking higher inflation and possible monetary tightening that would raise borrowing costs; rising import, fuel and medicine prices threaten household purchasing power and could drag on growth.

CMA Sri Lanka launched national Cost Accounting Standards to strengthen costing, control and reporting across large and medium public and private institutions; the standards prioritize sectors including power, telecom, manufacturing, drugs and agricultural/tea exporters to improve efficiency, pricing transparency and competitiveness.

Chevron Lubricants Lanka PLC received delivery of eight BAIC X55 vehicles for its corporate fleet. Central Finance Company PLC provided financing support to facilitate the acquisition.

LG Electronics showcased region-specific laundry, kitchen and AI-powered home solutions at LG InnoFest 2026 APAC in Busan, and outlined ThinQ ON rollout (starting with Australia and Thailand) plus expansion of its LG Subscribe appliance subscription across key Asian markets.