News & market updates

Sri Lanka's Cabinet approved legal measures to prohibit the export of scrap metals (iron, copper, aluminium, brass, zinc, etc.) to protect local manufacturers that rely on domestically sourced scrap. The move follows shortages blamed on exports of scrap and counterfeit metal products.

The war in the Middle East is driving higher energy prices and major supply‑chain disruptions, which are boosting inflation and tightening global financial conditions. Energy importers, food and fertilizer‑dependent agriculture, tourism, manufacturing and banks face the greatest strain.

Colombo Stock Exchange closed down with the ASPI down 0.12% to 21,066.18 and turnover at 3.57 billion rupees. Crossings included John Keells (11,971,313 shares) and Seylan Bank (300,000), and Dipped Products and Haycarb announced cash dividends of 0.76 and 1.70 rupees per share respectively.

Colombo Stock Exchange eased at midday with the ASPI down 0.33% to 21,022.14 and the S&P SL20 down 0.47% to 5,881.20. Brent futures fell below $110; Sampath Bank, Hayleys and ACL Cables were top decliners while Renuka Agri Foods rose after a filing showed a 10.04% shareholding.

Colombo Fashion Week will host the BRICS Fashion Summit (South Asian Edition) on April 3 during CFW Summer 2026 at City of Dreams Sri Lanka, featuring over 30 designers and international participants. The summit aims to open markets and deepen ties for designers and apparel supply chains across BRICS and South Asia.

EDB's National Packaging Centre held an awareness workshop on "Packaging strategies for Spices" for over 65 exporters and potential exporters on 19 March 2026 to improve packaging practices and boost export competitiveness.

David Pieris Automobiles marked the release of its 1,000th BAIC X55, highlighting growing local demand and expanded assembly at its Ranna manufacturing complex in Hambantota.

The ASPI fell 1.33% (283.49 pts) to 21,092.24 as Colombo market opened lower amid rising oil prices and Mideast tensions; principal detractors included John Keells, NDB, Hayleys, Melstacorp and Commercial Bank while Lanka IOC and Browns Investments saw gains.

Asian Paints Causeway, in collaboration with Renner Italy, launched Aqlac Natural Dark Shades and introduced Renner's water-based wood coatings at a Lotus Tower event in Colombo, showcasing durable, low-emission wood finishes to dealers and industry leaders in Sri Lanka.

Dipped Products PLC (DIPD.N0000) was named Overall Winner – Most Outstanding Exporter 2025 at the National Chamber of Exporters Awards, winning five awards including Highest Net Foreign Exchange Earner and Gold in Rubber & Rubber Products. The company, part of Hayleys Group, was also recognised for emerging markets performance and inclusive employment.

Dividend · Rs 9.00 · XD Apr 10, 2026

First Interim dividend of LKR 9/share; XD 2026-04-10; record 2026-04-14; payable 2026-04-30; FY ended 31st March 2026

An exclusive graphene investment conclave at Kingsbury Colombo promoted graphene technology and export opportunities; the Deputy Minister announced three new investment acts and a five-year Investment Diversification Plan and said Sri Lanka’s economic outlook has improved toward 2025.

JAT Holdings Plc has entered Australian cabinetry manufacturing by securing a fully operational Perth facility and has generated over Rs. 100 million (AUD 503,000) in revenue since commencing. The Form Cabinetry operation complements its SEAFORM premium offering and targets residential cabinetry across multiple price points.

Sri Lanka's apparel exports fell 11.46% y/y in February 2026 to US$361.2m. Exports were down 6.91% in Jan–Feb 2026, with a sharp EU contraction pointing to a regional demand slowdown and JAAF urging improvements in logistics, cost competitiveness and market access.

Asian stocks slumped as Brent crude rose 3% to $115.98, bringing monthly gains near 60% and raising inflation and recession risks. Markets have priced in higher Fed tightening and sovereign yields have jumped, pressuring energy, manufacturing, logistics, retail and financial sectors.

Atlas Axillia Co. (Pvt) Ltd launched limited-edition "Aluth Avurudu Gift Packs" — curated stationery and learning kits for children — available at leading retail outlets and e-commerce channels from early April for the Sinhala and Tamil New Year.

EDB’s National Packaging Centre held an awareness workshop on "Packaging strategies for Spices" on 19th 2026 with over 65 exporters and potential exporters to boost packaging practices and export readiness. Sessions covered packaging functions, material selection, spice-specific techniques and packaging machinery.

Sri Lanka's apparel exports fell 11.46% YoY to $361.2m in February 2026, led by a 19.48% drop to the EU and declines to the US and UK. The Joint Apparel Association Forum said the slowdown reflects broader weak global demand and urged improvements in logistics, cost competitiveness and market access.

Government rolled out a special fuel distribution mechanism for manufacturing firms and has forwarded 2,551 manufacturing fuel requests to the Ceylon Petroleum Corporation. Firms needing <400 litres will get supplies from provincial stations, 400–6,600 litres via SLTB depots, and >6,600 litres directly from CPC; CEB/CPC instructed to ensure uninterrupted supply.

The Lanka Confectionery Manufacturers Association pledged to keep prices of biscuits, chocolates and ice cream unchanged through May (Sinhala & Tamil New Year), citing rising utility and imported-input costs and urging government support on fuel distribution and customs delays.

ASPI rose 3.56% for the week but closed yesterday down 0.21% at 21,375.73 as the bourse ended a volatile week; foreign investors were net sellers of over Rs.1.2 billion and market turnover was about Rs.2.7 billion.

JAT Holdings PLC has established a local cabinetry manufacturing facility in Perth (operations commenced July 2025) and has generated over LKR 100 million in revenue since inception; this complements its SEAFORM premium offering, which has produced over LKR 350 million to date.

The Lanka Confectionery Manufacturers Association said prices of biscuits, ice cream, chocolate and other confectionery will not be increased until May. The group warned rising gas, electricity and ingredient costs, plus customs delays and higher shipping charges, could force price revisions after May.

Blue Arc Manufacturing and the BOI signed an agreement to establish Sri Lanka's first containerised substation assembly factory to manufacture and export containerised substations, skid substations and switch rooms for Australian mining, tunnelling and construction sectors. Units will be assembled and tested to international standards and the company plans to expand into markets including solar and hydro.

Sri Lanka's export earnings rose 4.22% YoY to $1.4bn in February, with Jan–Feb total exports up 7.56% YoY to $2.89bn (merchandise $1.06bn, services $335m); apparel fell 6.29% YoY to $831.7m in Jan–Feb while ICT/BPM, coconut products and food & beverage exports showed strong gains.

OECD cut its global growth outlook, projecting GDP growth of 2.9% in 2026 and 3.0% in 2027 as higher energy and fertiliser prices linked to the Middle East conflict drive up inflation and weigh on demand.

Ceylon Cold Stores PLC won the Gold Award in the Large Category of the Confectionery Products Sector at the NCE Export Awards 2025 for its 2024/25 export performance. The John Keells subsidiary exports to 16 countries and is expanding ties in India via a partnership with Reliance.

Kia Motors Lanka launched the all-new Kia Tasman pickup in Sri Lanka, a ground-up body-on-frame 2.2L diesel (210PS/441Nm) vehicle with up to 1,151kg payload and 3,500kg towing capacity, advanced 4WD systems, off-road modes and SUV-like interior tech.

BrandRadar (Roar Global) launched the Sri Lanka AI Visibility Index and hosted the country's first AI Visibility Summit to benchmark how brands appear in AI-driven discovery platforms (ChatGPT, Gemini, Perplexity, etc.). Initial coverage includes hospitality, banking/finance, insurance, retail/e-commerce, automotive and real estate.