News & market updates

Colombo market fell as the ASPI dropped 0.38% (91.22 pts) to 23,900.89 with turnover over Rs.6.9bn and foreign net outflow of Rs.20.9m. Top negatives included Senkadagala Finance, Ceylon Tobacco, John Keells, Carson Cumberbatch and C T Holdings while Prime Lands Residencies gained.

The SEC and Colombo Stock Exchange held an 'Invest Sri Lanka' forum in Riyadh on 24 January to showcase Sri Lanka's capital market and attract Saudi investors; a high-level delegation including the Central Bank Governor, SEC Chairman and CSE CEO took part.

The 13th Sri Lanka–Pakistan Joint Economic Commission met in Colombo and agreed cooperation across IT, pharmaceuticals, agriculture and maritime connectivity, including a Joint Working Group on IT and progress on pineapple and avocado export procedures. Commerce-level talks also reviewed PSFTA implementation.

The Export Development Board and ADB held validation workshops (12–14 Jan) for the draft National Export Development Plan 2025–2029. The draft sets six strategic objectives covering logistics and hubs, trade facilitation, trade finance, trade promotion, quality/ESG, and skills/innovation.

The ASPI closed at 23,992.11, up 0.13% (31.95 pts) after hitting an intraday high of 24,068.22, with turnover over Rs.6.9bn and foreign net outflows of Rs.480.2m. Capital goods led turnover (Rs.1.91bn) with John Keells and ACL Cables among top contributors while market breadth remained weak.

The Finance, Planning and Economic Development Ministry issued a circular expanding relief for Cyclone Ditwah‑hit micro and small businesses, providing one‑time grants (Rs.200,000 for registered small businesses; Rs.50,000 for unregistered home units; Rs.25,000 for mobile hawkers; building grants up to Rs.5 million) and concessional loans of Rs.250,000–25 million at 3%–5% with grace periods for recovery and reconstruction.

John Keells Holdings, Hemas Holdings and JAT Holdings outlined growth strategies at First Capital's investor symposium; JKH highlighted City of Dreams and West Container Terminal Phase One at ~90% utilisation. Hemas sees consumers shifting back to branded quality and demographic-led convenience growth, while JAT targets post-cyclone reconstruction and manufacturing expansion.

India and the EU agreed a free-trade deal creating a two-billion-person free-trade zone covering about 25% of global GDP, with tariffs on 96.6% of EU goods to India to be eliminated or reduced. The pact aims to boost sectors including machinery, chemicals, pharmaceuticals, cars and consumer foods and is expected to double EU exports to India by 2032.

The EDB and ADB held validation workshops on Jan 12–14, 2026 for the National Export Development Plan 2025–2029 to strengthen Sri Lanka’s trade competitiveness; the draft sets six strategic objectives including logistics, trade facilitation, trade finance, market linkages, quality/ESG and skills development.

INSEE Sanstha Cement was named Sri Lanka’s Most Awarded Cement Brand in 2025, winning multiple honours including SLIM Kantar People’s 'People’s Housing and Construction Brand of the Year' (14th consecutive), CIOB 'Sustainable Cement Brand of the Year', and 'People’s Pinnacle – Best Cement Brand of the Year 2025'.

ASPI ended marginally up at 23,960.16 (+0.03%) on turnover of over Rs.5.2bn. Capital goods led turnover (31%) driven by Colombo Dockyard and John Keells, while diversified financials and banks contributed 21% and foreign investors were net sellers of Rs.128.2m.

CleanTech has received Good Plastic Standard GP 5040:2025 certification, becoming the first company in Sri Lanka to meet the national benchmark for post-consumer recycled plastic pellets. The accreditation enables CleanTech to supply verified recycled plastics to FMCG brands and supports EPR compliance pathways.

INFRACON 2026, an infrastructure and construction exhibition, will be held 3–5 July at SBMEC Colombo with about 200 exhibitors and 5,000 trade visitors; the event will showcase HVAC-R, power and energy, green grid, safe water and building materials, and promote industry collaboration.

Sri Lanka will host its largest-ever 510 sqm country pavilion at Gulfood 2026, with 61 exporters participating to showcase food and beverage products, including Cargills, Elpitiya Plantations, Ceylon Cold Stores and Renuka Agri Foods.

India and the EU have concluded negotiations on a proposed free trade agreement, likely to be announced today, aimed at boosting bilateral trade and investment. The pact is expected to cut duties on labour‑intensive and key sectors (textiles, chemicals, gems & jewellery, electrical machinery, leather, footwear and pharmaceuticals) and is presented as a political signal against rising tariffs.

Yaden Laboratories signed a BOI agreement to establish Unit II in the Katunayake EPZ with an estimated $25 million investment to add lyophilized vials and liquid injectable manufacturing. This expansion follows Unit I (started Oct 2022), which supplied 6.5m liquid injectables locally and began sterile formulation exports.

President Trump said he is increasing U.S. tariffs on South Korean imports (autos, lumber, pharmaceuticals) from 15% to 25%, with timing unclear; South Korea's KOSPI and the won fell on the news.

The Export Development Board launched the National Export Development Roadmap 2026–2030 and an Export Performance Indicator data tool, targeting $36 billion in export revenue by 2030.

Sri Lanka will host a 510 sq m Country Pavilion at Gulfood 2026 with 61 exporting companies participating, including Cargills, Ceylon Cold Stores, Renuka Agri Foods and Elpitiya Plantations; the pavilion aims to boost exports of tea, spices, coconut and processed foods to MEASA markets.

The Colombo market hit an intraday record of 24,052.06 but closed flat, with the ASPI down 0.01% at 23,953.09 and the S&P SL20 up 0.20% at 6,663.12. Turnover was over Rs.5.4bn; York jumped 24.81% while SAMP, RICH, DFCC, CTHR and CARG were top negative contributors.

Sri Lanka's apparel and made-up textile exports rose 5.43% in December 2025 to US$447.21m, and full-year exports reached US$5.0192bn in 2025, up 5.42% year-on-year. The EU (excl. UK) was the largest full-year growth driver, up 12.48%.

Sri Lanka's total export earnings reached US$17,252.15 Mn in 2025, up 5.6% year-on-year. Merchandise exports rose 6.32% to US$13,579.38 Mn and services exports increased 2.79% to US$3,672.77 Mn, with strong gains in apparel, coconut products, ICT/BPM and food & beverages.

First Capital Holdings (CFVF.N0000) hosted its 12th Investor Symposium and presented a 2026 outlook forecasting Sri Lanka GDP to soften to 3.0–4.0% (from 5.0% in 2025). The presentation flagged Cyclone Ditwah-driven spending weakness, higher post-storm capital expenditure needs and renewed debt-management risks, alongside discussion on rates, FX and bond markets.

Felix A. Fernando was elected Chairman of the Joint Apparel Association Forum (JAAF) at its 22nd AGM and will chair the JAAF Executive Committee for 2026. Fernando, CEO/MD of Omega Line, said he will focus on competitiveness, sustainability and policy engagement to support Sri Lanka’s apparel exporters.

Government circular revises one-time grants for disaster-affected businesses: Rs.200,000 per unit for registered small/micro businesses (Industry Ministry or Divisional Secretariat), Rs.50,000 for unregistered commercial/manufacturing/greenhouse units, and Rs.25,000 for temporary trading units. Funding will be provided by the Defence Ministry and disbursed through Divisional Secretariats.

CleanTech became the first Sri Lankan company certified under the Good Plastic Standard GP 5040:2025. The certification enables it to supply verified recycled plastic to FMCG brands and supports the rollout of Extended Producer Responsibility (EPR) in Sri Lanka.

Colombo bourse hit a new year high as the ASPI rose 142.74 pts (0.60%) to 23,956.51, about 43.49 pts shy of 24,000. Top contributors were LOLC, DOCK, COMB, BIL and MELS, with turnover ~Rs 10.5bn and net foreign selling of Rs 82.1m.

BOI reports USD 1,057 million FDI inflows in 2025, a 72% increase from 2024. Manufacturing accounted for 46% of inflows, port development 26% and tourism 11%; 24 new projects contributed USD 134m and BOI approved 146 projects worth USD 1,906m toward 2026 targets.