News & market updates

Sri Lanka's apparel industry reaffirmed its leadership in ethical manufacturing at a Colombo forum on 13 January 2026, saying sustainability is now central to export competitiveness amid tightening US and EU due-diligence rules. Speakers stressed demand for verifiable traceability, WRAP certification and governance to secure buyers.

Colombo market ended flat as the ASPI fell 0.02% to 23,623.74 with turnover near Rs.5.17 billion and foreign investors net sold about Rs.91 million. Top negative contributors were SFCL, JKH, BUKI, CTHR and DFCC, while DOCK, ACL and RHL led turnover and HAYL and DOCK supported index performance.

Vietnam opened its 14th Party Congress, targeting average annual GDP growth of 10% or higher for 2026–2030 and a per capita GDP of around $8,500 by 2030, prioritising technology-led, private-sector-driven and green economic transformation.

Colombo Stock Exchange closed flat with the ASPI down 0.02% at 23,623.74 as speculative interest in Colombo Dockyard drove turnover. Colombo Dockyard listed 323,365,158 new ordinary voting shares after its rights issue; top contributors included Hayleys, Dockyard, ACL Cables, Commercial Bank and Nations Trust Bank.

SLSI revised SLS 1324:2025 for organic agriculture, introducing a mandatory Organic Management Plan, stronger crop/livestock/aquaculture rules and a prohibition on non-soil systems. The update also tightens processing, packaging and labelling, bans GMOs and adds social justice provisions to boost market access and consumer confidence.

Hela Apparel Holdings plans to sell up to 65% of Hela Brands Ltd (Mauritius) for US$12 million to help settle creditors as part of a debt restructuring. The company will seek shareholder approval at an EGM on Feb 3 and is pursuing internal restructuring and strategic funding; the Mauritian unit's consolidated net assets are US$26,539,418.

Colombo bourse opened the week down: ASPI fell 0.44% to 23,627.87 with foreign investors net sellers of ~Rs.697.9m and turnover ~Rs.4.7bn. Top negatives included DOCK, COMB, NTB, SAMP and SPEN, while ACL, Tokyo Cement, DIAL and REEF saw notable turnover/interest.

Gold hit $4,689.39/oz and silver $94.08/oz after US President Trump's tariff threat, driving investors to safe-haven metals and weighing on European shares. Analysts also cited expectations of further interest-rate cuts, central bank gold buying and Chinese silver export curbs as drivers.

IMF projects global growth at 3.3% in 2026 and 3.2% in 2027, a small upward revision for 2026 from the October WEO. It expects inflation to ease to 3.8% in 2026 and 3.4% in 2027, cites AI-driven investment as a tailwind and warns of downside risks from trade tensions, productivity shocks and high debt.

World Bank projects Sri Lanka will sustain primary fiscal surpluses and current account surpluses over the medium term, supported by strong revenue, lower global oil prices and resilient remittances. Growth is forecast to slow to 3.5% in 2026 and 3.1% in 2027; Ditwah damage is preliminarily estimated at $4.1bn (4% of GDP).

Sri Lanka will change the VAT base on imported rough stones to deemed values of $900/kg for precious and $50/kg for semi-precious (VAT/SSCL applied to those values) to revive local gem cutting and polishing. Authorities also plan to boost mining, certification and a gold refinery.

John Keells Holdings met Madhya Pradesh government at the WEF and expressed interest in exploring investments in logistics, hospitality, food processing and tourism in the state; a John Keells team will engage further to assess potential collaborations.

Asian Paints Causeway unveiled two auto-refinish products at its 'Night of Champions' event: the Star Class MAXXCUT Metal Filler with a 10-minute rapid drying time and the Star Class 2K Fast Dry Primer Surfacer allowing sanding after 30 minutes.

The UK’s liberalised Developing Countries Trading Scheme (effective 1 Jan 2026) allows Sri Lankan apparel manufacturers to source up to 100% of inputs globally while retaining zero-tariff access to the UK; apparel exports to the UK were about USD 660m in 2024 and USD 610m in 2025.

CBSL PMI: Manufacturing PMI 60.9 and Services PMI 67.9 in December 2025, indicating sharp expansion despite Ditwah weather disruptions. Manufacturing was led by food & beverages and higher new orders, while services were driven by wholesale & retail and accommodation/F&B with rising employment and optimistic near‑term expectations.

Sri Lanka Manufacturing PMI was 60.9 in December 2025, indicating continued expansion; Services PMI was 67.9, showing notable services growth despite early-month weather disruptions.

Sarvesh Suri was named IFC Regional Vice President for Asia and the Pacific and will lead IFC investment and advisory operations across the region, overseeing work from India to the Pacific Islands on finance, manufacturing, agribusiness, services, infrastructure and natural-resources projects.

Marlbo Trading has added Teledyne FLIR thermal imaging cameras to its product portfolio to provide advanced inspection and safety solutions for buildings, industry and emergency services.

First Capital Holdings (CFVF.N0000) will host its 12th Investor Symposium on 22 January 2026 at Cinnamon Life Colombo, presenting the Economic and Investment Outlook for 2026. The event, which will be live-streamed, features a panel of industry leaders including JAT.N0000.

US President Donald Trump announced a 10% tariff from Feb 1, 2026 on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, rising to 25% on June 1, 2026 unless Greenland is sold to the US. The article links the move to geopolitical expansionism and notes broader macro context including inflation and Fed policy.

Sri Lanka will host the Cascale Forum in Colombo from March 30–April 1, bringing over 500 global apparel manufacturers, brands, retailers and policymakers to discuss building fairer, more resilient supply chains. The textile and apparel sector accounts for nearly 50% of exports and about 6% of GDP, and local factory tours will showcase sustainability practices.

Vietnam will hold its 14th Party Congress from January 14; the economy grew 8.01% in 2025 to an estimated US$514 billion. Party leader To Lam urged prioritising macroeconomic stability and inflation control and promoted science- and technology-driven growth, digital transformation and an international financial centre.

Sri Lanka's manufacturing sector expanded in December, with the central bank's PMI at 60.9. New Orders and Production rose (driven by food & beverages), Employment and Stock of Purchases increased, while Suppliers' Delivery Time lengthened due to higher input demand and weather-related logistical delays.

China and Canada agreed to roll back tariffs: China will cut canola tariffs to 15% from 85% by March 1, while Canada will apply a 6.1% MFN tariff on Chinese electric vehicles and cap eligible EV imports at 49,000 units.

Sri Lanka's unemployment rate rose to 4.3% in 3Q 2025 from 3.8% in 1Q/2Q as labour force entry—notably by women—outpaced job creation and total employment slipped to 8.10 million. The quarterly contraction was driven largely by agriculture while industry and services saw modest gains; youth unemployment remained high at 19.2% (ages 15–24).

Guston Limited’s subsidiaries Concord Apparel (Avissawella) and Concord Footwear (Ulapane) won Best Exporter awards at the Presidential Export Awards 2024/2025 in Apparel (Medium) and Footwear & Leather Products sectors. The factories were noted for advanced manufacturing, international certifications and sustainability practices.

JAT Holdings PLC certified more than 800 painters with NVQ Level 3 at its 6th Pintharu Abhiman Convocation, funding assessments and compressing testing into a three-day model. Surveys show 90% report increased confidence, 76% improved living standards and one in five have started businesses.

MTI Consulting completed a performance review and turnaround strategy for Zimbabwe’s Industrial Development Corporation on behalf of the Mutapa Investment Fund, and the assignment was described as successfully concluded. The work involved SERA and included stakeholder feedback from industrial and NBFI sectors and regional best practices.