News & market updates

Dipped Products PLC marked its 50th anniversary by refurbishing the Physiotherapy Unit at Monaragala District General Hospital and donating a BTL CPMotion rehabilitation machine. It also provided financial aid to 22 farmers after Cyclone Ditwah, donated gloves to the municipal council, installed a school drinking-water system and ran education outreach.

The Science and Technology Ministry opened the 'Harvest Centre' technology incubation centre at the University of Ruhuna Faculty of Agriculture to support agribusiness and food-technology startups in the Southern Province. The centre will provide lab testing, packaging advice and technical and management support to help SMEs add value and access domestic and export markets.

Colombo Stock Exchange trended down midday, ASPI fell 0.68% to 22,678.41 and S&P SL20 fell 0.96% to 6,364.32, with turnover Rs 3.36bn and capital goods contributing Rs 1.075bn. Royal Ceramics announced an interim dividend of Rs 1 per share; Ceylinco led gains and John Keells was the top detractor.

Dipped Products PLC renovated the Physiotherapy Unit at Monaragala District General Hospital and donated a BTL CPMotion rehabilitation machine as part of its 50th-anniversary programme. The company also provided financial aid to 22 cyclone-affected farmers, donated gloves to the municipal council, installed a school water system and ran education outreach activities.

Sri Lanka opened the 15th Textile Series exhibition at SLECC to link international textile technology suppliers with local apparel manufacturers, with the sector's exports around $5 billion. Officials and industry bodies emphasised technology adoption, innovation, tariff reforms and use of international funding to boost competitiveness and higher-value production.

JAT Holdings PLC completed the second-phase expansion of its binder plant, increasing production capacity by 76% and bringing the facility into full operation. The upgrade is intended to support growth in emulsions and coatings, reduce import reliance, and improve cost predictability and FX exposure.

Cabinet approved phased removal of cess on 2,634 import Combined Classification Codes over 2026–2029, with cuts staged at 25%, 50% up to 100% (265 textile-related goods to see removal in 2026; 697 intermediate goods phased 2026–28). The measure is aimed at lowering production costs, easing exporters' cost pressures and improving supply-chain efficiency.

A Bill to amend the SSCL Act was gazetted, lowering the registration threshold to Rs.9 million per quarter (Rs.36m annually) from 1 April 2026 and removing the import-stage SSCL exemption on motor vehicles while exempting wholesale and retail motor vehicle turnover. The Bill sets a 15-day registration window and a de-registration test; KPMG noted no transitional rule for vehicles already in inventory as at 31 March 2026.

The ASPI rose 0.60% (134.03 pts) to 22,577.41 on bargain hunting after a prior session plunge, with turnover ~Rs.4.7bn and foreign net outflow of Rs.95.1m. Capital goods led turnover (Rs.1.5bn) while banking and diversified financials also drove gains.

The Sri Lanka Export Development Board held a Regional Exporters Networking Forum in Matara to identify Southern Province exporters' challenges and explore new export opportunities, with nearly 250 exporters and senior officials participating. The EDB collected issues beforehand to focus discussions and aims to reduce regional export disparities.

Japan and the United States are working to include a Westinghouse-linked nuclear power project in the second round of deals under Japan’s $550 billion investment package. The project aims to bolster energy supply chains amid Middle East tensions and rising demand from AI data centres.

Sri Lanka's cabinet approved removing cess on 2,634 imported goods in stages through to 2029, phasing para-tariffs from 25% to 50% and up to 100%, while saying domestic industries will be protected.

Fitch says a prolonged Iran conflict disrupting Gulf energy and shipping would lift prices and cash flows for upstream APAC energy exporters while squeezing margins and working capital for downstream refiners, chemicals, fertiliser and some metals producers. Australian and Indonesian exporters and gold miners are likely near-term beneficiaries, while refiners with regulated fuel prices face heightened cash-flow risk.

Asian stocks slid as investors feared a wider Middle East conflict could spark an energy shock; Seoul plunged 4% (two-day losses over 11%) while Brent crude jumped over 12% to $81.40/bbl. Markets flagged higher inflation and delayed rate-cut expectations, and gold fell about 4.5%.

ASPI plunged 1,290.68 points (-5.4%) to 22,443.38 on Feb 3 after Middle East tensions triggered panic selling and a 30-minute circuit breaker; the S&P SL20 fell 322.32 pts (-4.9%). Turnover was Rs.9.6bn (up 62.9%); foreign investors net sold Rs.59.6m; decliners included COMB, SAMP, HNB, JKH and HAYL, while LIOC, CFLB, BOPL, MRH and MADU were among gainers.

Sierra Cables PLC posted nine-month revenue of Rs. 12 billion (up 68% y/y) and profit for the period of Rs. 2.1 billion (up 105%), with EPS rising to Rs. 3.88. The company, now a 2025 subsidiary of Browns Investments, expanded exports, earned UL 44 certification and retained a Fitch A+ (lka) rating.

The EDB chairman and Sri Lanka's Foreign Minister held a business promotion programme in Bremen on 27 Feb 2026 to promote Sri Lanka Expo 2026 (18–21 June) and invite German businesses to participate. Discussions focused on export and investment prospects, logistics, tourism and follow-up virtual engagement.

The Sri Lanka Export Development Board unveiled 'Edges of Sri Lanka' national branding alongside the official launch of Sri Lanka Expo 2026 to showcase the country's export and investment value proposition; the Expo will run 18–21 June 2026 at BMICH, Colombo.

AmCham Sri Lanka CEO Forum 2026 convened 200+ leaders calling for reforms to restore economic confidence, targeting 7% annual growth and a 70% renewable-energy share by 2030. Panels highlighted SME support measures (Rs.300m, 'Level Up'), banking consolidation, infrastructure/port upgrades and FDI-attracting reforms.

Sri Lanka's rubber sector faces mounting cost, demand, disease and labour pressures, with 2025 rubber export earnings down to about USD 945m from ~USD 1.01bn in 2024. Removal of SVAT, a 15% wage rise, disease outbreaks and higher energy costs have suppressed prices, cut replanting and threaten long-term viability without policy support.

Sri Lanka's external current account recorded a $369.7m surplus in January 2026, up 271% YoY, driven by 9.1% export growth, strong remittances and a narrower trade deficit. Gross official reserves were $6.8bn, foreign inflows into gov't securities were $16.6m while CSE saw a $21.9m net outflow; the LKR was 0.2% stronger YTD to end-February.

The Central Bank of Sri Lanka will issue a review report tomorrow assessing the potential impact of the ongoing Middle East crisis on Sri Lanka’s economy, the president told Parliament; the evaluation aims to clarify possible effects on the country’s financial sector.

Colombo Stock Exchange plunged at Tuesday open and trading was halted after the S&P SL20 fell 5.53% (to 6,269) and the ASPI dropped 5.27% (to 22,483.76). The halt ran from 09:31–09:36 with an auction until 10:01; brokers blamed Middle East tensions and possible supply-route disruptions.

Sri Lanka apparel exports fell 2.66% YoY in January to $425.44m; US shipments fell 2.73% to $165.11m, EU ex-UK down 1.93% to $126.99m, UK up 0.23% to $61.71m, and other markets down 6.07% to $71.63m. JAAF said the revised DCTS and a uniform temporary 10% US tariff from 1 Jan 2026 should help sourcing flexibility and short-term pricing.

Colombo stock market closed February lower: ASPI fell 47 points (0.2%) and the S&P SL20 dropped 74 points (>1%) with turnover of Rs.7 billion. Banks, conglomerates and blue-chips (COMB, JKH, HNB, CTC, LLUB) weighed on the index while Renuka Agri Foods rose and foreign investors were net sellers of Rs.363.8m.

Swedish Trading Company (STC) hosted STC TechSphere 2026 in Colombo on 3 Feb 2026, marking over 40 years representing Atlas Copco and SKF and introducing SUTO iTEC as its newest principal partner.

Sri Lanka's apparel exports fell 2.66% YoY to US$425.44m in Jan 2026 (Jan 2025: US$437.07m); US shipments fell 2.73% to US$165.11m and EU ex-UK fell 1.93% to US$126.99m, while the UK was stable at US$61.71m. Revised DCTS (from 1 Jan 2026) and a uniform 10% temporary US tariff should improve sourcing flexibility and short-term pricing certainty.

The US Supreme Court ruling rescinded IEEPA tariffs, reducing Sri Lanka's effective US tariff from about 31% to 21.6% and granting tariff-free access to an additional USD 65.1m of exports. Section 122, Section 232 and MFN tariffs still apply and potential rises (e.g. Section 122 to 15%) mean ongoing tariff uncertainty for apparel and other exports.