News & market updates

EU leaders endorsed a 'Buy European Only' policy; Frontier Research says it does not yet directly affect Sri Lanka but could hurt export earnings if GSP+ preferences are diluted. Key vulnerable sectors noted are tea, rubber and apparel, while stricter rules could also affect IT, medical services and electronics ties.

Sri Lanka's manufacturing PMI was 56.1 and services PMI 64.5 in January 2026, both above the 50 threshold indicating expansion. Manufacturing growth slowed from December's seasonal peak and services expansion eased month-on-month.

A high-level Japanese delegation met President Dissanayake to advance plans for a Sri Lanka–Japan export-industrial corridor intended to attract Japanese manufacturing investment focused on exports (notably to India) and deepen bilateral economic ties.

Hayleys PLC held the Chairman’s Awards 2025, with Haycarb PLC winning the Overall Award for innovation in specialty activated carbon for silicon‑carbon anode materials and Hayleys Fabric PLC winning an ESG award for a smart energy‑saving stenter system that cuts fuel use and CO₂ emissions. The awards highlighted innovations across energy transition, agriculture and logistics supporting exports and sustainability.

Sri Lanka and Japan signed a Memorandum of Cooperation to formalise economic policy dialogue and to pursue a roadmap including an industrial economic corridor with a working group to operationalize it. Presentations covered foreign investment policy, export capacity and JETRO and Japanese firms shared insights on the business environment.

EDB, the Sri Lanka Embassy in Riyadh and the Saudi Food and Drug Authority ran a webinar on SFDA export registration procedures for Sri Lankan exporters, attended by over 90 companies. Presentations covered registration, facility approval and inspections for foods, beverages, fisheries and herbal products; Saudi was Sri Lanka's 23rd export market in 2025 with USD 137.85m exports (+13.3%).

The Ceylon National Chamber of Industries launched the CNCI Achiever Awards 2026 in Colombo on 5 Feb; the 25th annual awards will recognise industrial excellence across Extra Large to Micro categories and the government sector, with applications subject to external and internal judging.

ASPI rose 0.80% (190.27 pts) to 23,900.11 and the S&P SL20 gained 1.38% to 6,710.33, led by strength in large-cap banking stocks. Market turnover was over Rs.5.6bn, foreign investors were net sellers of Rs.167.6m, with HNB, SAMP, COMB, DOCK and NDB among top positive contributors.

The EDB held a hybrid awareness session on 11 Feb 2026 with about 200 exporters to explain the UK’s Developing Countries Trading Scheme (DCTS), providing guidance on recent reforms, eligibility, documentation, rules of origin and how to claim tariff preferences.

The Sri Lanka Export Development Board will hold a specialised workshop on 'Risk Management, Strategies and Incoterms' for potential and SME exporters on 18 February, 9:30am–3:30pm at the NDB-EDB Building in Colombo. The session covers order negotiation, buyer confidence, labelling/packaging, pricing, risk management, Incoterms and payment terms; limited seats, contact the Trade Facilitation Division to register.

Oniverse (Omega Line) plans a EUR 30 million investment in a new Sri Lanka plant to produce a capsule used in bras, underscoring Sri Lanka's role as a specialised manufacturing base for technically demanding intimate apparel; the group flags logistics, manpower and policy stability as key constraints.

IFC committed $28.6 million (part of a $40 million package) to CBL Group to fund its acquisition of PT Tri Jaya Tangguh in Indonesia and expand CBL's biscuit facility in Ghana. IFC will also provide advisory support aimed at job creation and increased female participation.

TVS Lanka launched the TVS Sport 110 in Sri Lanka, claiming a 15% fuel-economy improvement and mileage of 80 km/l. The commuter bike features ET‑Fi fuel injection, synchronized braking, a five-year/76,000 km warranty and island-wide availability through TVS Lanka’s dealer network.

The Board of Investment will host the Sri Lanka Investment Forum 2026 on 30 March at Cinnamon Life, Colombo, focusing on green transition and sector-led investments including renewable energy, green finance, services, manufacturing, infrastructure and leisure. The EU, ADB and ESCAP are supporting the event, which includes parallel sector sessions and a closed-door EU–SL investor dialogue.

Macktiles has launched Macktiles Australia in Victoria as part of a deliberate internationalisation push; the company cites a manufacturing capacity of 44,000 sqm/day and a reported 40% share of the Sri Lankan market. The move extends its global footprint and showroom network, now 50 locations.

Lankem Ceylon PLC expanded its partnership with Axalta Coating Systems to introduce advanced industrial, marine and powder coating solutions across Sri Lanka. The move targets infrastructure, energy, agriculture, heavy equipment, rail and steel sectors to improve corrosion protection and reduce maintenance needs.

At the 27th EU–Sri Lanka Joint Commission in Colombo the EU stressed time-bound delivery of Sri Lanka's commitments under the GSP+ scheme, urging alignment of anti-terror legislation; both sides also discussed investment opportunities under the EU's Global Gateway and cooperation on trade, fisheries and education.

ASPI rose 0.24% to 23,709.84 with turnover above Rs.8.5bn and foreign investors net sold Rs.986.2m. Top positive contributors were HNB, RICH, CTEA, COMB and AEL; TKYO led materials-sector turnover (Rs.2.05bn) and JINS recorded a 7.8% price gain.

The ninth Boat & Marine Show Sri Lanka was held 30 Jan–1 Feb 2026 at Port City, Colombo, showcasing marine tourism and boat-building (50 exhibitors, 90 stalls) to promote exports and B2B links with international buyers. The event aimed to boost nautical tourism and attract investment into boat-building and related services.

Sri Lanka and Thailand finalized draft MoU and an Agreement to recruit 10,000 Sri Lankan workers for sectors including construction, agriculture, food & beverage, industry, education, aquatic processing and mining; drafts will go for government approvals and a ministerial signing is expected in Q1 2026.

Tantri Trailers signed an MoU with Mercy Education Campus on 12 February 2026 to introduce over 100 industry-led technical training programmes aimed at strengthening manufacturing-sector skills and improving youth employability.

ASPI closed down 0.01% at 23,652.51 with turnover of LKR 4.8bn and net foreign outflow of LKR 42.7m. Banks led turnover (30%), food & beverage and capital goods together contributed 31%; top negatives were RICH, CFIN, JKH, RIL and AEL, while RAL saw net foreign buying and crossings were led by COCO, COMB and DOCK.

Dankotuwa Porcelain (DPL.N0000) was one of six Sri Lankan exhibitors at Ambiente/Christmasworld/Creativeworld Frankfurt 2026, where exhibitors reported strong international buyer interest and promising export inquiries, supporting potential growth in Sri Lankan consumer-goods exports.

Government has begun stakeholder consultations on a proposed Four-Band Tariff Policy under the 2026 Budget to rationalise tariffs, improve predictability for businesses and boost exports; the Finance and Industry ministries and the World Bank are gathering industry feedback before finalising reforms.

The US will exempt certain Bangladeshi apparel made with US-produced materials from tariffs and cut its overall tariff rate on Bangladesh from 20% to 19% in exchange for Dhaka opening its markets to more US goods. The deal targets Bangladesh's apparel sector, which makes up over 80% of its export revenue.

Ajay Banga (World Bank) warns 1.2 billion young people will enter the workforce in the next 10–15 years while only about 400 million jobs are expected, creating a vast shortfall. The World Bank proposes a three-pillar jobs strategy (infrastructure and skills, business-friendly rules, and scaling businesses) focused on infrastructure, agribusiness, healthcare, tourism and manufacturing.

The Sri Lanka Export Development Board will run a workshop on Feb 18 titled 'Risk Management, Strategies and Incoterms to Win Competitiveness in International Trade Beyond Borders' for potential and SME exporters at the NDB-EDB Building in Colombo; sessions will be bilingual with practical exercises and limited seats (register via the Trade Facilitation Division).

The Colombo market ended marginally higher — ASPI +0.02% to 23,655.68 — on turnover of Rs.3.35 billion with foreign net outflows of Rs.64 million. Top positive contributors included NHL, CFIN, CARG, JKH and LLUB, while Samson International, UB Finance and Sierra Cables led turnover.