News & market updates

The US labour-related tariff on Sri Lankan exports has been reduced from 12.5% to 10%, a move the Ceylon Chamber says will relieve exporters. The Chamber welcomed the outcome and urged continued dialogue to secure longer-term market access stability.

Sri Lanka's Finance Ministry said the US reduced the proposed additional Section 301 tariff on Sri Lankan goods to 10% from 12.5%, improving exporters' competitiveness, particularly for apparel. The ministry noted overall apparel duties still average about 26.5% and the US is over 20% of exports.

SEC, CSE and CA Sri Lanka signed an MoU to implement XBRL-based reporting for companies listed on the Colombo Stock Exchange, targeting rollout in the latter part of 2026. The CSE has procured and customised the XBRL platform and is completing UAT while a joint committee finalises the taxonomy and implementation framework.

USTR finalized Section 301 results placing Sri Lanka on a 10% US tariff for goods produced with forced labour, matching key competitors (Bangladesh, Pakistan, India, Cambodia) and preserving apparel export competitiveness. JAAF thanked the President and government for securing the parity.

The US has imposed a 10% Section 301 tariff on Sri Lankan goods under a forced-labor import ban, raising effective apparel tariffs to about 26.5% and rubber product duties to roughly 12–15%. The US remained Sri Lanka's top export destination, with US$1,436.85m of exports in H1 2026 (~20.3%).

The U.S. will impose new 'forced labor' tariffs of 10% or 12.5% on imports from 60 trading partners, including Sri Lanka, replacing an expiring temporary 10% tariff; the duties take effect as the temporary levy expires, with goods in transit exempt until July 28.

Niterra Co. Ltd. (NGK) prompted a Colombo Crime Division raid in Horana that seized a large volume of counterfeit NGK spark plugs; the suspect pleaded guilty, was fined Rs. 250,000 and the seized products were ordered destroyed.

JAT Holdings PLC will donate LKR 10,000 to the Indira Cancer Trust for every six hit by the Dambulla Sixers for the remainder of the 2026 Lanka Premier League. The cumulative contribution will be presented after the tournament and updates will be shared on JAT and Dambulla Sixers digital platforms.

The Ceylon Chamber of Commerce will host a business networking session with a 30-member Indian Chamber of Commerce delegation on 28 July at the Hilton Colombo Residences to connect Sri Lankan firms with Indian companies. Participating sectors include manufacturing, construction, healthcare, IT, renewable energy and tourism.

Colombo market extended its rebound as the ASPI rose 0.24% (49.81 pts) to 21,199.37 and the S&P SL20 gained 0.22% to 5,945.87, with turnover about Rs.1.1bn and foreigners net sellers of Rs.188.6m. Top contributors included HNB, CARS, CINS, NDB and TKYO; NDB, SAMP and PKME gained while MELS fell and JKH closed flat.

Ceylon Chamber will host a business networking session with a 30-member Indian Chamber of Commerce delegation on 28 July at the Hilton Colombo Residences, offering Sri Lankan firms opportunities to explore trade, investment and partnerships across sectors including manufacturing, construction, healthcare, IT, renewables and tourism.

Despite political backlash, the global shift to cleaner energy and converging sustainability disclosure standards (ISSB, EU rules) is accelerating, driven by large investors and prompting manufacturers and financiers to adopt carbon accounting, taxonomy-aligned finance and digital product passports.

Solar and wind are now the cheapest sources of new electricity generation in most parts of the world, shifting renewable energy from a reputational choice to a cost-saving, price-stability option for companies. Firms are adopting rooftop solar, PPAs and storage across manufacturing, retail, logistics and large IT users to cut costs and meet rising disclosure rules.

Electronics industry is shifting ESG from reporting to supply‑chain and operational management, driven by market pressure and EU regulations. The updated IPC-1401B standard aims to help manufacturers embed ESG across procurement, manufacturing and governance.

Global sustainable consulting is forecast to reach $27.21bn by 2034, growing at a 9.5% CAGR from $11.79bn in 2025 as mandatory ESG rules and decarbonisation drive demand for sustainability advisory. Manufacturing, energy, infrastructure/green building and professional services are the main demand centers, with consultancies expanding digital and operational capabilities.

Green finance is emerging in Sri Lanka to channel investment into renewable energy, green bonds, ESG-linked lending and sustainable infrastructure to boost climate resilience and economic recovery. Banks, capital markets, developers, tourism operators and tech firms are highlighted as key participants.

Sri Lanka's large EEZ and strategic maritime location offer opportunities to grow a Blue Economy across fisheries, ports/logistics, tourism, aquaculture, marine biotechnology and ocean renewables. Realising this will require ESG-aligned investment, tech adoption, sustainable management and coordinated policy.

Sri Lanka's export earnings rose 7.96% YoY to $9.01bn in Jan–Jun 2026, with June exports at $1.65bn (up 12.5% YoY). Merchandise exports were $7.07bn (up 8.95%) and services $1.93bn (up 4.49%), led by ICT/BPM, EECs, processed foods and coconut products while tea fell 5.69%.

Hayleys Agriculture Holdings opened Hayleys Nature Nest, Sri Lanka's first frozen concentrated coconut water manufacturing facility to produce premium concentrated coconut water for export. The facility is intended to boost value-added agricultural exports and support local coconut growers.

Sri Lanka's Industry Minister Sunil Handunneththi visited India (14–18 July 2026) to advance cooperation in textiles, manufacturing, agribusiness, technology, investment and tourism. He met Indian textile ministers at BharatTex, toured RIICO's industrial park and a Mega Food Park, held a FICCI roundtable and discussed direct air links and investment opportunities.

Sri Lanka's merchandise exports rose 15.09% to US$1,314.10mn in June 2026, led by electrical & electronic components (exports up over four-fold), boat building and petroleum products. Cumulative Jan–Jun exports rose 8.95% to US$7,073.31mn, while tea, coconut and apparel exports declined.

Companies can cut carbon footprints and reduce energy costs with low-cost steps — upgrading equipment, switching to renewables, optimizing transport, working with suppliers, reducing waste and measuring emissions to find savings.

Manufacturers are increasingly adopting circular-economy practices—repair, reuse and recycling—to cut costs, reduce exposure to volatile material prices and meet tightening regulation. Design changes and product-as-a-service models help capture value but require upfront investment and new collection/refurbishment systems.

Consumers increasingly expect ethical, transparent supply chains across clothing, food and electronics, valuing honesty and evidence of remediation over perfection. Companies face reputational and regulatory risk from false claims and must audit and monitor suppliers rather than rely on one-off checks.

Adopting circular economy practices can turn Sri Lanka's municipal, agricultural and industrial waste into economic value through recycling, reuse, and waste-to-energy, improving resource efficiency and creating jobs. Opportunities span manufacturing, construction, agriculture, packaging/retail, and digital technologies for material tracking and financing.

Sri Lankan businesses are increasingly treating diversity, equity and inclusion (DEI) as a strategic driver of innovation, employee retention and investor confidence. Inclusive policies, transparent reporting and supply-chain labour standards are highlighted as ways to boost competitiveness and attract responsible investment.

Hayleys Fabric PLC won the Climate Action Award at the 3rd Global ESG & Sustainability Conference & Awards 2026 in Kuala Lumpur, recognising its measurable climate action including SBTi-validated Net Zero targets, renewable energy investments and decarbonisation initiatives.

A University of Peradeniya study found foods made with 7 Star Chakki Atta are low-GI: chapati GI 45, roti GI 44 (37 with chickpea curry) and puri GI 50, with glycemic loads of 16–19, supporting their suitability as everyday staples.

SLCGE has launched a renewed membership drive inviting SME apparel manufacturers across Sri Lanka to join a unified industry platform to strengthen the apparel sector and expand export opportunities.