News & market updates

ASPI fell 0.12% to 22,351.55 as profit-taking dragged the Colombo market, with declines in MELS, DOCK, CARS, SPEN and LLUB; market turnover was over Rs.4.3bn and foreign investors were net sellers of Rs.21.36m.

Sri Lanka's Industry and Entrepreneurship Development Ministry and EDB held diplomatic meetings to promote Sri Lanka Expo 2026 (18–21 June 2026 at BMICH) and attract international buyers and investors. The outreach targeted participation across apparel, tea, spices, rubber, ICT services, food & beverages and industrial manufacturing.

The Ceylon Chamber Export Barometer Survey 2026 found more than half of exporters view Sri Lanka's investment climate as worse than peers, citing policy/regulatory uncertainty, labour and energy costs. The 90-respondent survey shows exporters are diversifying and seek a National Single Window, digital systems, capacity-building and FTAs to improve competitiveness.

Fitch warned the Iran conflict could raise credit risks for emerging markets such as Sri Lanka by raising energy prices and disrupting remittances, exchange rates, fiscal subsidies and access to international finance.

Sri Lanka is strengthening global trade partnerships to promote Sri Lanka Expo 2026 (18–21 June 2026 at BMICH, Colombo), aiming to attract international buyers and investors across apparel, tea, spices, rubber, ICT services, food & beverages and industrial manufacturing. A high-level EDB and ministry delegation met UK, Indonesian and Korean envoys to boost participation.

Nestlé Lanka will invest Rs. 9 billion over the next four years to expand its Pannala manufacturing facility, focusing on scaling coconut milk powder production for export. The company said it will not reduce staff, supports thousands of farmers and aims to be 100% plastic neutral by 2026.

Colombo market rebounded as the ASPI rose 2.17% (474.38 pts) to 22,378.52 after global oil prices fell below $95/bbl, with gains led by banks and blue-chips including HNB, SAMP, COMB and DIAL and turnover of about Rs.4.48bn.

The Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026 (18–21 June at BMICH), offering 650 booths and opportunities to meet over 1,500 global buyers; applications close 31 March 2026. Sectors covered include industrial and agro-industrial products and services such as ICT, tourism, renewable energy and healthcare.

The Cabinet approved a 'Committee on Economic Surveillance' chaired by Dr. Anil Jayantha Fernando to monitor and assess potential economic impacts on Sri Lanka from the Middle East conflict. The committee will review sector risks and submit policy recommendations to the Cabinet.

Embilipitiya Stores expanded its factory from 100,000 sq ft to 145,000 sq ft (a 45% increase), raising monthly bathroom set production from 3,500 to 5,000 units. The group also manufactures construction materials and plans further domestic and international expansion.

UN Global Compact Network Sri Lanka launched a Country-Level Environmental and Supply Chain Sustainability Working Group strategy and held January 2026 kick-off sessions to mobilise 70+ companies across five thematic working groups. The initiative focuses on climate mitigation/adaptation, water and ocean stewardship, and supplier capacity building to advance sustainability and regulatory-aligned disclosure.

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The ASPI plunged 3.51% to 21,904.14 as panic selling and a >25% surge in crude to about $115/bbl on Middle East conflict hit the CSE; banking and blue-chip stocks (Commercial Bank, HNB, JKH, Sampath, C T Holdings) led declines while Lanka IOC rose.

Elvoir, Sri Lanka’s first certified perfumer-led fragrance brand, is manufacturing IFRA/ISO/GMP-certified luxury perfumes locally and targeting exports. It has sold out limited editions, partners with hospitality brands, and is expanding into candles, smart diffusers and personal-care lines.

Sierra Cables PLC won two major 2025 NCE Export Awards — Gold in the Large Category (Electronic & Electrical Products) and Best Sri Lankan Brand Exporter. The company highlights its unique UL 44 certification (only Sri Lankan cable maker certified) and expanded international footprint enabling access to regulated markets including the US.

PR Wire and the Automobile Industry Council launched the inaugural Automobile Awards to elevate Sri Lanka’s automobile industry, attracting over 150,000 device clicks within two months of its digital launch.

Fcode Labs launched Forevate, a real-time market intelligence platform combining internal data and external signals to help firms respond faster; the solution initially targets manufacturing, logistics, retail/e‑commerce and FMCG across Asia, Europe and North America.

Embilipitiya Stores Tool & Ceramic Manufacturing (Pvt) Ltd, an Eagle Group affiliate, opened its first Eagle Bath Ware ceramic sanitary ware and tile showroom in Embilipitiya offering bathroom suites, tiles, mortars, putty and accessories with warranties up to 25 years. The group plans to open additional showrooms islandwide.

DCSL Breweries Lanka is launching Aliya Beer into international export markets, offering Strong and Lager variants to build global brand awareness.

Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026, a four-day international trade exhibition from 18–21 June 2026 at BMICH offering 650 booths and access to over 1,500 global buyers; application deadline is 31 March 2026.

Brent crude jumped past $110/bbl in March 2026, prompting Sri Lanka to raise diesel 7.8% and petrol 10%, which widens the import bill, pressures reserves and has devalued the rupee. The shock raises energy and transport costs, risking higher inflation and strain on fuel importers and the power sector.

The BOI will host the 'Invest in Sri Lanka' Forum on 30 March to showcase improving macroeconomic stability and attract global investors to opportunities in renewable energy, tourism, technology and infrastructure.

The Iran conflict has pushed oil above $110/bbl, forcing central banks to weigh supporting growth against fighting higher inflation. Emerging Asian central banks may reverse dovish stances or intervene to defend currencies amid risks of capital outflows and stagflation.

The Government and leading private-sector CEOs held the 'National Export Roadmap: The CEO Forum' to set strategic priorities for Sri Lanka's export sector, with the Industries Minister saying the Government will act as the main investor in industrial infrastructure. The EDB organized the forum and its outcomes will feed into a broader national export roadmap.

Fitch warns the Iran conflict could raise credit risks for emerging-market sovereigns by raising global energy prices and straining remittances, fiscal subsidies, exchange rates and access to finance; hydrocarbon exporters could benefit while importers (e.g. Pakistan, Egypt, Philippines, Ukraine) are more vulnerable.

The Export Development Board convened a CEO Forum to unveil the National Export Roadmap targeting US$36 billion in export revenue by 2030. Officials and industry leaders emphasized a whole-of-government approach and stronger institutional partnerships to drive export-led growth.

BOI will host the 'Invest in Sri Lanka' Forum on 30 March 2026 at Cinnamon Life to showcase sustainable, technology-driven and high-value investment opportunities. The forum highlights include a 70% renewable electricity target by 2030 and prospects across hospitality, logistics, manufacturing and digital infrastructure.

Sri Lanka Customs collected 212.4 billion rupees in February 2025, exceeding its 160.2 billion-rupee target by 28% (46.4 billion rupees). Officials attribute the jump to stronger enforcement, improved valuation and a rebound in imports alongside currency movements.

Sri Lanka will merge the Industrial Development Board, NEDA and the Small Business Development Division into a new Sri Lanka Industrial Transformation and Innovation Authority (SITIA) and is planning 33 industrial zones with 35-year land leases to attract investors.

The CSE fell, with the ASPI down 4.34% (1,032.15 points) for the week as index-heavy banking and diversified holdings stocks dragged the market. Foreign investors were net sellers (week net outflow Rs.791.2m); large declines came from JKH, HNB and SAMP while ACL, CINS and RAL saw heavy off‑board turnover.