DENZA, BYD’s premium NEV brand, brings its B5 and B8 plug-in hybrid SUVs to Sri Lanka featuring DiSus-P hydraulic suspension and integrated torque/terrain systems, offering off-road intelligence and 0–100 km/h in 4.8 seconds for mixed urban and rough terrain driving.
IT & DigitalRenewable Energy
Ada Derana·Feb 23, 2026·Regulatory or legalNegative
The European Commission demanded the United States adhere to last year's EU‑US trade deal and accept no tariff increases beyond the agreed 15% ceiling after the US imposed temporary tariffs of 10% then raised them to 15% following a Supreme Court ruling.
CBL Group has acquired PT Tri Jaya Tangguh Indonesia, a large-scale coconut processing facility, in a transaction exceeding USD 25 million. The deal expands CBL’s manufacturing footprint in Indonesia to increase capacity, supply-chain resilience and its global coconut milk export capability.
INSEE Cement has recommenced limestone rail shipments from its Aruwakkalu quarry to the Puttalam plant from 18 February 2026 after repairing a 3 km stretch and bridge damaged by the Ditwah Cyclone, following an approximately LKR 1.5 billion restoration investment.
MAS Holdings will repurpose its Methliya facility for knitting, dyeing and finishing and cease garment manufacturing there, reallocating production to other MAS factories. Employees are offered transfers (including overseas), a three-month relocation salary incentive or compensation above statutory requirements, and the company says the transition complies with labour laws.
The SEC and SLAASMB signed a Memorandum of Understanding to formalize cooperation on oversight of financial reporting and auditing for SEC‑licensed entities, including listed companies, establishing information‑sharing, referrals and joint awareness initiatives.
EDB ran a training program for potential exporters and SMEs on Incoterms, risk management and competitiveness; Chairman Mangala Wijesinghe said a five-year National Export Development Plan is being drafted and noted SME direct export contribution is under 5%. The workshop covered order negotiation, packaging, pricing, buyer trust and international payment methods.
MAS Holdings will cease garment manufacturing at its Methliya plant and convert the facility to fabric production (knitting, dyeing and finishing), affecting about 2,200 employees. Garment capacity will be moved to other MAS plants; employees are offered transfers, a three-month incentive, or compensation above statutory requirements.
Exporters
Ada Derana·Feb 22, 2026·Regulatory or legalNegative
President Trump said he will raise a temporary global tariff on U.S. imports from 10% to 15% under Section 122, effective immediately; the tariffs last 150 days and require congressional approval to extend and may face legal and political challenges.
Exporters
Ada Derana·Feb 21, 2026·Regulatory or legalNegative
President Trump imposed a new 10% tariff on most U.S. imports for 150 days after the Supreme Court ruled he lacked unilateral authority to set broad tariffs. The Court also struck down earlier tariffs, putting about $175bn collected into question and raising global trade uncertainty.
US Supreme Court ruled 6-3 that President Trump unlawfully imposed sweeping tariffs, finding they exceeded federal law; the court did not decide what should happen to more than $130 billion in tariffs already collected.
A two-week training program on Tropical Food Production and Processing Technologies, jointly organised by China (CATAS) and Sri Lanka’s ERD with the Department of Agriculture, concluded in Kandy on 28 January 2026, covering crop management and food-processing innovations.
Dongfeng Trucks launched in Sri Lanka on Feb 17 through a partnership with Euro Motors (a subsidiary of Euro Holdings), introducing a range of commercial vehicles for logistics, construction, garments and other sectors. Euro Motors will provide island‑wide service and spare parts support to customers.
St. Anthony’s launched Blackwood, a range of luxury engineered doors for Sri Lanka made in partnership with VK Engineering and available via HOMEMART and authorised distributors. The factory-sized doors use German Sauerland cores and European LVL to improve durability, sizing and reduce on-site rework.
Construction Activity
Ada Derana·Feb 20, 2026·Promotional / marketing·TJLPositive
Teejay Lanka PLC fully funded a new washroom facility at Ruwanwella Royal College and partnered with the H.E.R Foundation to deliver menstrual health and hygiene education to about 400 students and parents.
Healthcare & PharmaConsumer Staples (FMCG)
Ada Derana·Feb 20, 2026·Award or certificationPositive
Hayleys PLC won the Gold Award for Overall Excellence in Corporate Reporting at CA Sri Lanka's TAGS Awards 2025 for the fourth consecutive year, with the Group securing 21 awards including 14 Golds. Several listed firms on the shortlist also won sector awards, including Haycarb, Kelani Valley, Singer, Dipped Products, Alumex, Talawakelle, Horana and Kingsbury.
Colombo bourse dipped as the ASPI fell 0.21% to 23,870.07 despite net foreign inflows of Rs.37 million after 22 days of outflows. Capital goods led turnover; John Keells and Hayleys rose while Sampath, Colombo Dockyard, Dialog, DFCC and Commercial Bank were among the negative contributors.
EDB, the Sri Lanka Embassy in Riyadh and the Saudi Food and Drug Authority held a webinar on Saudi export registration procedures for over 90 Sri Lankan exporters; Saudi was the 23rd export destination at $137.85m in 2025 (+13.3% vs 2024). The session covered registration, facility approval, inspection and clearance processes for poultry, fisheries, processed foods, frozen produce, beverages and herbal products and included a technical Q&A with SFDA officials.
The Embassy of Sri Lanka in Riyadh and the Saudi Food and Drug Authority held a virtual workshop on 10 February 2026 to guide more than 80 Sri Lankan food and beverage exporters on Saudi regulatory procedures and export requirements. The session covered fisheries, poultry, processed foods, fruits and vegetables, beverages and herbal products.
The Sri Lanka Export Development Board ran a Market Exposure and Capacity Building Programme alongside BIOFACH 2026 (9–14 Feb 2026) to prepare Sri Lankan SMEs in spices, coconut, dehydrated fruits and coffee for EU market access; activities included workshops, certification guidance, factory and supermarket visits and B2B matchmaking with EU importers.
JETRO Executive VP Okumura said JETRO aims to position Sri Lanka as an export hub linking India, the Middle East and Africa and will send a Japanese business delegation to Sri Lanka next month. She cited political stability, improving macro conditions and port infrastructure as drivers, noting interest across manufacturing, logistics, agri/food processing, electronics and mineral supply links.
President Anura Kumara Dissanayake said UK Deputy PM David Lammy's visit reinforces international confidence and welcomed the UK's decision to grant zero-tariff access for Sri Lankan textile exports. He flagged tourism, exports and FDI as priority areas, urged sustained forex inflows and outlined post-Cyclone Ditwah reconstruction measures.
The Export Development Board will host the Southern Province Regional Exporters’ Networking Forum in Matara on 24 Feb 2026 to identify exporters' challenges and explore growth opportunities. Exporters and officials from Galle, Matara, Hambantota and Monaragala will attend; Minister Sunil Hadunnetti will preside and EDB is collecting region-specific proposals.
Macktiles launched Macktiles Australia in Victoria, entering the Australian market; the Sri Lankan turnkey tile maker reports production capacity of 44,000 sq m/day and about 40% local market share. It already exports to the US, Saudi Arabia, Nigeria, Kenya, the Maldives and Indonesia and opened its 50th showroom in 2025.
A Japanese delegation met President Anura Kumara Dissanayake to advance the Sri Lanka–Japan export-industrial corridor aimed at attracting Japanese manufacturing investment for export markets (particularly India); a Memorandum of Cooperation was signed during the President's visit to Japan.
The ASPI fell 0.07% to 23,882.82 in a volatile session with turnover of Rs.4.2bn and foreign net outflow of Rs.42.3m. Leading negative contributors were CTHR, PABC, DIMO, DFCC and RICH, while Softlogic Capital and Prime Lands led turnover.
Oniverse Group is investing about EUR 30m to build a new plant in Sri Lanka to produce a capsule used in bras. The company says Sri Lanka remains a specialised hub for technically demanding intimate apparel but faces logistics, labour and cost constraints and needs stable policy to attract long-term investment.
Sri Lanka's manufacturing PMI was 56.1 and services PMI 64.5 in January 2026, indicating continued expansion in both but at a slower pace than December 2025 (60.9 and 67.9). Growth was driven by higher new orders, production and employment in manufacturing and strong wholesale/retail, accommodation and financial services activity in services.
Government issued new Strategic Development Projects regulations granting tiered corporate tax holidays (generally 5–10 years) with investment thresholds starting at >$50m and import-duty/VAT/PAL/CESS exemptions during implementation. Categories cover infrastructure/tourism, manufacturing and agriculture/ICT; motor vehicles excluded.