News & market updates

Colombo market rose 2.28% for the week as the ASPI crossed 23,000, closing at 23,063.98. Top positive contributors were CINS, HAYL, DOCK, DIAL and HNB; turnover was ~Rs.4.1bn and foreign investors were net buyers of Rs.26.2m.

Vietnam used FTAs to grow apparel exports from $13bn to $45bn over 15 years; the article recommends Sri Lanka create a full-time FTA negotiation resource and align trade, investment, infrastructure, skills and sustainability to help expand its $5bn apparel sector.

Sri Lanka and Vietnam set a target to increase bilateral trade to $1 billion by 2030. Discussions covered renewable energy, digital infrastructure/AI, manufacturing and agriculture; Vietnam donated 100 tonnes of fertilizer and new airline routes to Colombo are planned.

Mila Fashion says it has not closed its Welioya facility and is undertaking a temporary, structured operational consolidation, reassigning affected employees to affiliated group companies with continued pay and support. The company says the moves comply with labour law and include transport, accommodation and meal support.

Mila Fashion Ltd. said it has not ceased operations and is conducting a temporary operational consolidation at its Welioya facility, reassigning affected employees to affiliated group companies with continued salary payments. The company said measures comply with labour law and include transport, accommodation, meals and orientation support.

BOI says potential German investors will visit Sri Lanka for the German Business Forum (GBF) 2026 in Colombo on May 27–29. The event targets boosting FDI into export sectors (textiles, apparel, rubber) and areas like logistics, precision engineering and renewable energy.

US dollar rose above Rs.320 today, mid-rate at Rs.320.45 (buy Rs.317.26, sell Rs.324.87); CBSL reports the rupee has depreciated about 2.9% against the USD as of April 30, 2026.

FTZMA urged the PUCSL to operationalise power wheeling under Section 13 of the Electricity Act and publish the regulatory framework and wheeling-charge methodology within 90 days to allow industry to buy renewable power via the grid, reduce fuel imports and save foreign exchange.

China has retooled its Belt and Road Initiative, with deals linked to the programme reaching a record $213 billion in 2025. The revamp emphasizes smaller projects, greater equity stakes (about 40% by 2025) and 'soft connectivity' to export standards, services and digital systems abroad.

ASPI rose 258.09 points (+1.13%) on 7 Jul as CSE turnover reached ~Rs.5.28 B; Industrial Asphalt jumped 40%, SMB Finance gained (non‑voting +33.33%, voting +25%), while Palm Garden Hotels fell 7.08% and foreign net outflow was Rs.22.32 M.

Colombo Stock Exchange closed up 1.13% as the ASPI rose 258.09 points to 22,997 with turnover of Rs 5.28 billion and materials leading turnover (Rs 1.38bn). SMB Finance announced CEO Supul Chamikara Wijesinghe will resign effective June 3.

Colombo Stock Exchange's ASPI rose 1.09% to 22,985 by midday, with market turnover at Rs 3.7 billion and the S&P SL20 up 0.80%. Top contributors were Central Finance Company, John Keells Holdings, Royal Ceramics Lanka and RIL Property, with the materials sector leading turnover at Rs 1.069 billion.

Sri Lanka's Ministry of Energy and Board of Investment issued an RFI for green hydrogen and green ammonia project proposals, with submissions due 5 June 2026. The move supports the National Hydrogen Roadmap targeting 70% renewable power by 2030 and USD 1bn annual green energy exports by 2030.

The US dollar selling rate in Sri Lanka climbed above Rs.324 to Rs.324.03 (buying Rs.316.40, spot Rs.319.78), and the rupee has depreciated 2.9% against the dollar year-to-date to April 30, 2026.

Asian stocks jumped to record highs (MSCI Asia-Pacific ex-Japan +2.3%) as AI-driven buying and signs of progress toward a U.S.-Iran agreement boosted risk appetite; Brent crude fell about 1.2% to $108.51/bbl. Tech and semiconductors led gains while the dollar eased.

Cabinet approved the Sri Lanka National Export Development Plan 2026-2030, targeting $36 billion in export earnings by 2030. The plan was prepared by the Export Development Board with ADB technical assistance to guide and monitor export competitiveness.

ASPI fell 0.49% (110.70 pts) to 22,584.30 as Middle East tensions dented sentiment; turnover was over Rs.2.1bn and foreigners were net sellers of Rs.42m. CINS, CTHR, HHL and SAMP were top negative contributors while COMB, LFIN, PKME, ACL, REEF, GRAN and JKH featured among active names.

Sri Lanka and the Maldives pledged deeper economic cooperation at the Maldives–Sri Lanka Business Forum in Colombo, with Maldives announcing investment‑friendly reforms and leaders urging expansion of bilateral trade (US$137m in 2025), tourism, infrastructure and sector partnerships.

CSE All Share Index fell 0.49% (110.70 pts) to 22,584 and the S&P SL20 dropped 0.31% to 6,225 as brokers said Middle East escalation spurred retail selling. Bank counters saw selling, turnover was Rs 2.15bn with crossings in JKH, COMB, LLUB and LFIN, and Colombo Dockyard narrowed its quarterly loss to Rs 428.1m.

The IMF omitted Sri Lanka’s 2026 GDP projection from its April 2026 World Economic Outlook, signaling a fragile recovery linked to incomplete debt restructuring, governance failures and banking-sector issues, Ganeshan Wignaraja said.

Sri Lanka's Ambassador met Suez Governor Hani Rashad on 19 April to discuss boosting trade and investment ties and proposed cooperation in the maritime sector, including joint ventures to manufacture boats and fishing vessels and invited a Suez investor delegation to Sri Lanka Expo 2026. The Governor expressed strong support, citing Suez's strategic Red Sea/Suez Canal location.

Maxtherm Lanka won the Silver Award for Best Energy Efficiency Service Provider at the National Energy Efficiency Awards 2025. Its biomass boiler conversions can cut fuel costs by up to 75% and the company estimates its interventions delivered about $66m in national cost savings and a ~40m kg CO₂ reduction over three years.

ASPI rose 0.65% (145.47 pts) to 22,695.00 while the S&P SL20 gained 0.6% to 6,244.64. Market turnover exceeded Rs. 4.8bn with Ceylon Tobacco Company dominating turnover (Rs. 2.4bn) even as foreign investors were net sellers, extending YTD foreign outflows to Rs. 27.6bn.

First Capital says listed plantation firms AGAL, KGAL, KOTA and HOPL are well positioned to benefit from rising rubber prices as rubber makes up about 15%+ of their revenue. Dipped Products and exporters may also gain from higher rubber prices and rupee depreciation, while Kelani Tyres could face margin pressure.

Colombo Stock Exchange closed higher Monday with the ASPI up 0.65% at 22,695.00 and turnover of 4.81 billion rupees, driven by buying in banking counters. Top contributors included NDB, Dialog, Melstacorp and Colombo Dockyard, while Ceylinco Insurance and Windforce were among decliners.

Dipped Products PLC launched 'DPL EasyPay', a digitised procurement system connecting 4,500+ latex farmers and 40+ agents, enabling 50% instant payments at collection and saving ~6,200 man-hours monthly. The offline-capable platform adds QR traceability, biometric validation and SAP integration and is shortlisted for a digital impact award.

KPMG Sri Lanka Academy will host a webinar on 5 May to explain recent tax reforms — including the Social Security Contribution Levy Act, the VAT (Amendment) Bill, expanded withholding taxes and higher capital gains tax — and their compliance implications for businesses and individuals.

Sri Lanka Customs exceeded its April revenue target, collecting Rs. 186.5 billion, and is accelerating digitalisation to automate workflows, reduce corruption and speed container clearance to support trade facilitation and revenue collection.

Colombo posted its biggest monthly gain since July 2025, with the ASPI up 7% and the S&P SL20 up 5.1% in April, with average daily turnover of Rs.3.66bn. Yesterday the indices fell (ASPI -0.38% to 22,550) on losses in John Keells, Sampath and Commercial Bank amid net foreign outflows of Rs.75mn.

Hela Apparel Holdings said its subsidiary Hela Brands (Mauritius) sold its entire stake in UK-based Focus Brands Ltd. to Emerald Investments for $8 million, a transaction completed after shareholder approval. The buyers intend to continue manufacturing and design operations to maintain export continuity and jobs.