News & market updates

Melwa Conglomerate hosted its annual 'Night of the Generals' on 27 February at Cinnamon Life, Colombo, featuring a Talk Show on 'Smart and Resilient Cities' with international experts George Kunihiro and Naveed Anwar. The event drew senior professionals and highlighted Melwa's role in Sri Lanka's construction and industrial sectors.

Hela Apparel Holdings sold its shares in UK-based Focus Brands to two Emerald Investments shareholders for $8 million, and the transaction is complete with consideration paid. The company said proceeds form part of a debt-restructuring plan to settle creditors.

Singer (SINS.N0000) will acquire ACME Printing and Packaging PLC's factory premises in Piliyandala for Rs. 630,000,000 under a sale-purchase agreement dated April 28, 2026. Singer says the purchase is intended to expand its local manufacturing business.

Colombo Stock Exchange was up midday with the ASPI +0.05% at 22,631.02 and S&P SL20 +0.22% at 6,243.14. Top contributors included Sampath, Commercial Bank and Ceylon Guardian, while Vallibel One and Janashakthi lagged; turnover was Rs2.2bn and Singer agreed to buy ACME's Piliyandala factory for Rs630mn.

Singer (Sri Lanka) agreed to buy ACME Printing and Packaging's Piliyandala factory for Rs630 million to expand its local manufacturing. ACME said the sale is part of its restructuring; Singer reported a 47% rise in December-quarter profits to Rs2.1 billion.

Emerald Clothing Ltd. has stepped in to operate select Hela Clothing factories (Thihariya, Palapathwala) and UK/US design units to maintain manufacturing and selected deliveries, supporting several thousand jobs as Hela faces liquidity and legal issues.

An ADB fact-finding mission met the Sri Lanka Export Development Board on 27 April 2026 to review progress on the National Export Development Plan 2026–2030 and agree next steps, including Cabinet approval, ADB technical assistance, a PMU and a high-level steering committee.

Emerald Clothing has stepped in to run selected Hela Clothing operations, keeping manufacturing at Thihariya and Palapathwala operating, supporting several thousand jobs and maintaining export customer deliveries to stabilize Sri Lanka’s apparel export base.

Colombo Stock Exchange ASPI rose 0.28% to 22,676.60 midday, led by gains in ACL Cables, Commercial Bank and John Keells. Capital goods led turnover with ACL contributing 91.8 million rupees, and National Development Bank said INED Shanil Fernando resigned effective April 27.

President Anura Kumara Dissanayake directed the Inland Revenue Department to accelerate tax-reform measures and fast-track a national e-invoicing rollout, insisting the system be completed within the stipulated timeframe. Officials reviewed IRD 2026 progress and discussed institutional restructuring and digitalisation.

Colombo Stock Exchange closed flat as the ASPI rose 0.03% to 22,620.15. Top positive contributors were Commercial Bank, John Keells and ACL Cables while DFCC and Central Finance lagged; Janashakthi (JXG) is set to start trading on April 29 with 2.3 billion shares.

CEAT Kelani Holdings launched the GRIPP X5 and ZOOM X5 premium motorcycle and scooter tyre ranges for Sri Lanka, engineered for higher mileage, safety and improved wet/dry performance and launched in four key sizes covering many popular two-wheelers.

The ASPI rose 0.20% (44.68 pts) to 22,612.31 as foreign investors were net buyers of Rs. 242.25m; market turnover was nearly Rs. 3bn on 141m shares. Gains were led by CINS, DIAL, SAMP, CARS and DFCC, with food, beverage & tobacco leading turnover (25%) and capital goods plus real estate adding 25%.

Sri Lanka's apparel exports fell 8% in Q1 2026 year-on-year, worsening from a 3% decline in January to 11% in February and March. The sector cites higher operating costs—fuel and electricity adding nearly USD 3m monthly—and calls for energy reform, GSP+ renewal, U.S. engagement and expanded India access.

The Asian Development Bank estimates Sri Lanka has about $6 billion of unrealised export capacity — exports could rise 47% if gaps are addressed — and says weak export growth has widened the trade deficit and pressured the rupee ahead of rising external debt repayments. Usable reserves cover roughly three months of goods imports, limiting the Central Bank's ability to defend the currency.

Colombo bourse fell 0.9% for the week (ASPI down 205.7 pts) with year-to-date net foreign outflows reaching Rs. 24.9 billion. CINS, CTC, COMB, JKH and MELS were top positive contributors; market turnover exceeded Rs. 2 billion with capital goods, food/beverage/tobacco and banking leading activity.

Hyundai Motor will roll out 20 new models in China over the next five years, aiming to double annual sales to 500,000 vehicles. It launched the China-specific electric IONIQ V and is expanding partnerships with autonomous-driving developer Momenta and battery maker CATL.

Sri Lanka's cumulative exports for Jan–Mar 2026 reached US$ 4,308.11 million, up 1.59% year-on-year. March exports were US$ 1,467.31 million (down 5.2% YoY but up 9.0% month-on-month), with strength in coconut, processed food, electronics and services while apparel and tea declined.

Fitch warns emerging Asia could face rising food-cost pressure if a prolonged US–Iran war disrupts fertiliser supplies, noting nitrogen urea prices have risen about 50% to roughly USD700/tonne and could cut yields and raise food prices later in 2026. Countries with low stockpiles and import dependence are most exposed.

Advocata Institute says the recent LPG retail increase of Rs.775 left a shortfall of Rs.225–425 per 12.5kg cylinder after Saudi Aramco’s benchmark added Rs.1,000–1,200 to landing costs, with the gap covered by cross-subsidisation that shifts costs onto households. It urges cost-reflective pricing and targeted cash transfers.

Foreign investors were net sellers on the CSE yesterday with a net outflow of Rs. 2.52 billion, driven mainly by trades in Softlogic Life, Ceylon Tobacco and Hayleys Fabric. MTD net foreign outflow stood at $5.1 billion and YTD outflow at Rs. 25 billion, Asia Securities Research said.

Cabinet approved drafting a Bill to create the Sri Lanka Industrial Transformation and Innovation Authority, consolidating the Industrial Development Board, National Enterprise Development Authority and the Small Enterprise Development Division into one body. The authority is intended to improve policy coherence, reduce overlap and strengthen industrial transformation, innovation and SME support.

The EPF's listed equity portfolio rose 27% to Rs. 188.85 billion at end-2025. The fund cut holdings from 65 to 59, fully exited six counters (Cargills Bank, Ceylon Hotels, Colombo Dockyard, Jetwing Symphony, LAUGFS Gas, Sierra Cables) and added Hemas (40m shares); gains were led by banks and diversified stocks.

Colombo market ended marginally higher as the ASPI rose 0.06% to 22,639.81 despite net foreign selling of Rs.2.52 billion. Softlogic Life (AAIC) and Ceylon Tobacco (CTC) topped foreign selling and AAIC led turnover with a ~Rs.1.3bn crossing; insurance, food & banking dominated activity.

Colombo stocks rose 0.25% as foreign investors turned net buyers after a 21-session selling streak, recording a net inflow of Rs. 19.8 million and lifting the ASPI 55.45 points to 22,625.48. Top contributors included CINS, BUKI, CFIN, MELS and NHL, while consumer services led turnover and oil price moderation supported sentiment.