News & market updates

Sri Lanka's manufacturing PMI rose to 56.8 in February from 56.1 in January, signalling continued expansion. CBSL said firms pre-emptively stocked amid concerns over supply pressures from unrest in the Middle East and suppliers' delivery times lengthened.

Sri Lanka's Manufacturing PMI was 56.8 in February 2026, indicating continued expansion, while the Services PMI was 54.4, also signaling expansion compared with the previous month.

President Anura Kumara Dissanayake said the government will implement energy-management measures, including a QR system for daily fuel allocations, to ensure uninterrupted economic activity and essential services amid disruptions from the Middle East conflict; a committee was tasked to report required fuel allocations by end of today.

SLAMERP celebrated its 40th anniversary as Sri Lanka's rubber products sector reached $1 billion in export revenue and remains the country's third-largest export contributor.

Ceylon Chamber urged the Government to adopt measures to safeguard economic stability, prioritising continuation of the IMF programme and timely tranches. It recommended fuel measures (dynamic pricing, QR system, faster procurement), securing fertilizer and aviation fuel, prioritising FX for critical imports, and bolstering tourism, exporters and port clearance.

Evolution Auto, Sri Lanka’s largest EV portfolio provider, highlights evidence (Geotab study) that EV batteries degrade about 2–3% annually—most retain >80% capacity after eight years and many remain >70% for 15–20 years—arguing EV longevity and simpler upkeep versus ICE mechanical wear.

LOLC Securities' Investor Forum said a sovereign credit rating upgrade could attract foreign inflows as CSE market capitalisation rose to about Rs.7.6 trillion (from Rs.2.9 trillion in 2022). The forum highlighted stabilised macro fundamentals, recovering exports and tourism, and sectoral opportunities in finance, construction and export-oriented industries.

President Anura Kumara Dissanayake met with ministry secretaries to plan maintenance of essential services amid the Middle East conflict, instructing exploration of regional fuel reserves for critical sectors, a feasibility study on remote working, and prompt fixes/streamlining of the digital QR code system.

Investment banks have raised oil price forecasts after Middle East supply disruptions, with some warning Brent could reach $150+/bbl (Goldman sees March >$100/bbl and Brent traded around $100.80 early Friday). Analysts say prices could spike further if the Strait of Hormuz remains closed.

The CSE fell as the ASPI dropped 4.45% (1,009.36 pts), wiping Rs. 348.6 billion amid Middle East tensions and oil topping $100/bbl. Banking shares including COMB, HNB, HAYL and NTB were leading negatives while capital goods and crossings by MELS, ACL and AEL drove turnover.

Asian equity markets fell as rising oil prices and escalating Middle East tensions pushed the MSCI Asia‑Pacific down about 1.8% (weekly losses ~2.2%); Brent crude hovered near $100/bbl, tech and export-oriented stocks led declines and currencies showed heightened volatility.

India's cabinet loosened FDI rules to allow investments from land-bordering countries in selected manufacturing sectors, permitting up to 10% stakes without prior approval and expedited reviews within 60 days. The changes target electronic components, capital goods and solar/renewable components while keeping Indian ownership control.

Profood Propack & Agbiz Knowledge Hub 2026 will be held 21–23 Aug 2026 at BMICH, Colombo, with SLFPA and LECS planning an expanded exhibition focused on food processing, packaging, agriculture and SME support; Cargills Ceylon PLC is listed as a platinum sponsor and Hayleys’ agri unit featured among awardees.

Alumex PLC was the official material sponsor of 'Unleashed 2026', providing about 650 kg of aluminium components and specialised anodising services for the University of Moratuwa's FALCON E1 electric race car. This is Alumex's third consecutive student EV project and the car is slated to compete at Formula Student Spain.

The upcoming National Export Development Plan targets over 10% annual export growth and will expand focus from traditional pillars (apparel, tea, rubber, coconut) into new sectors — automotive components, electrical/electronic products, mineral-based industries, processed food & beverages, spices and gems & jewellery — while diversifying markets toward Africa, Asia and the Middle East.

ASPI fell 1.63% to 21,998.12 as Middle East tensions and higher oil prices weighed on the Colombo market. S&P SL20 dropped 1.71% to 6,172.28 with broad declines led by JKH, HNB, MELS, HAYL and SAMP; turnover topped Rs.4.1bn and foreigners were net buyers of Rs.32.2m.

The EDB convened a high-level meeting with exporters, industry associations and logistics stakeholders to address shipping and supply-chain disruptions to Middle East markets from the regional conflict and to identify coordinated support measures for exporters.

Brent crude topped $100/bbl, jumping over 9% intraday despite IEA members releasing about 400 million barrels from strategic reserves. Asian equities fell — Japan's Nikkei ~1.6% and Australia's ASX200 >1.3% — as markets priced higher inflation and potential rate pressure.

Alumex PLC was the Official Material Sponsor for the University of Moratuwa's FALCON E1 launch, supplying roughly 650 kg of aluminium components and specialized anodizing services for the student-built electric race car. This is Alumex's third consecutive support for the team's vehicles, which will compete at Formula Student Spain.

Dipped Products PLC (DIPD.N0000) rang the Colombo Stock Exchange opening bell to mark its 50th anniversary. The manufacturer of protective handwear and plantation services, a member of Hayleys PLC (HAYL.N0000), serves customers in over 70 countries.

The Export Development Board held a high-level meeting with major export sector associations to identify support for exporters facing disruptions to shipments to Middle East markets due to the regional conflict. Participants included tea, spices, fruits & vegetables, food processors, coconut-product associations and shipping/freight forwarders, and issues will be taken to the Export Development Council of Ministers.

Colombo Stock Exchange ASPI fell 1.18% to 22,088.70 midday (S&P SL20 down 1.19% to 6,204.94) with turnover of Rs.1.82 billion; capital goods contributed Rs.541 million. Hatton National Bank, John Keells Holdings and Melstacorp were top negative contributors, and DFCC Bank said it will list its Blue Bond on the Luxembourg Stock Exchange (DFCC stock down 2.44% intraday).

All Ceylon Bakery Owners Association warned bakeries nationwide are facing shortages of diesel, petrol, kerosene and gas and urged the government to ensure uninterrupted supplies and allow fuel in cans for operations. About 25% use gas and 25–30% use diesel/kerosene; owners do not expect to raise prices despite shortages and some power outages.

Fitch forecasts global growth slowing slightly to 2.6% in 2026 (from 2.7% in 2025) if the recent oil-price shock is short-lived, and raises its 2026 Brent oil forecast to USD70/bbl. It also expects US growth of 2.2%, China 4.3% and anticipates two Fed cuts in 2026 under the base case.

Teejay Lanka Plc has appointed Teruo Funahashi as a Non-Executive Director. Funahashi is a long-time Toray executive and is set to join Pacific Textiles as executive director, chairman and CEO from 1 April 2026.

Hayleys Fibre PLC appointed Ruwan Rajapakse as Managing Director and Executive Director, effective 1 April 2026. Rajapakse brings over 30 years' experience including senior roles at the Jiffy Group, Hayleys Agri, Hayleys Advantis and Maersk, and holds an MBA and CMA.

SLFPA and LECS will stage Profood Propack & Agbiz Knowledge Hub 2026 at BMICH, Colombo from 21–23 August 2026. The sector-wide expo, endorsed by the Ministry of Industries, focuses on food processing, packaging and agri innovation and lists Cargills (Ceylon) Plc among its platinum sponsors.

Dipped Products PLC (DIPD.N0000) rang the Colombo Stock Exchange opening bell to mark its 50th anniversary. DPL, a Hayleys PLC group company, is a leading protective handwear manufacturer and plantation manager exporting to over 70 countries.