News & market updates

The Export Development Board says Sri Lanka’s exports are on course to surpass $16–17 billion this year and is targeting $20 billion in export earnings. Officials cited policy reforms, product development and SME support, plus a planned international industrial exhibition and district programs to boost market access.

The Joint Apparel Association Forum (JAAF) has activated an industry-wide relief and recovery effort for apparel employees affected by flooding and landslides, coordinating member companies to provide emergency support and establishing focal points for impact reporting. Most factories have resumed normal operations, with a few isolated access challenges remaining.

SkiPod Manufacture Pvt Ltd will set up a BOI-backed manufacturing facility in Sri Lanka with a Phase I investment of US$3 million to produce and export SkiPod mixed-reality sports simulators to markets including North America, Europe and the UAE. The project is backed by US-based Continam Group and aims to introduce Industry 4.0 technology and local job opportunities.

President Anura Kumara Dissanayake chaired a meeting with Industry and Finance officials to review disaster damage to the industrial sector and consider a comprehensive recovery plan and relief measures for affected industrialists.

Trade Ministry Secretary K.A. Vimalenthirarajah said Sri Lanka will introduce a comprehensive national tariff policy by mid-2026 to replace decades of patchwork tariffs and move to a predictable, facilitative regime. The reform aims to boost export competitiveness, expand FTAs and speed trade facilitation (Single Window).

President Anura Kumara Dissanayake instructed officials to promptly begin compensation payments to farmers who lost crops and livestock to Cyclone Ditwah and ordered immediate restoration of the irrigation network. He also reviewed industrial sector damage and received recovery and relief plans for affected industrialists.

The Joint Apparel Association Forum (JAAF) has activated an industry-wide relief and recovery effort after severe weather, coordinating member companies to assist affected employees and communities while most factories resume operations. JAAF has set up focal points for district impact reporting and is liaising with government to mobilize assistance.

Colombo Stock Exchange ASPI fell 1.87% to 21,826.59 and the S&P SL20 dropped 1.75% to 6,030.66. Top decliners included Ceylinco Holdings, Melstacorp, Commercial Bank, Senkadagala Finance and Bukit Darah; construction names Access Engineering and Sierra Cables also slid, and Hemas appointed Ajith Fernando as chairman effective Jan 1.

Ministry of Industries has opened a data collection system and asked industrialists to submit information on Cyclone Ditwaa damage by 2 PM on December 16, 2025 via www.industry.gov.lk. Assistance is available through officers at Divisional and District Secretariat offices.

The EDB, with IFC and the EU, concluded the second ExpoScaleUp pitching event under SLEEI 2025 to boost SME export readiness through training in market research, branding and logistics; selected SMEs will advance to ExpoConnect for market access and international buyer matchmaking.

Colombo market recouped 30% of Monday’s Rs.240 billion wipe-off as the ASPI rose 1% (219 points), restoring about Rs.72 billion of market cap; top contributors included RICH, CINS, SAMP, BUKI and NDB while capital goods and materials led turnover.

Colombo Stock Exchange recovered as the ASPI rose 1% (219.51 pts) to 22,241.57, led by gains in diversified financials and construction-related shares, with notable rises in Ceylinco, Sampath, NDB, Bukit Darah, Sierra Cables and ACL Cables.

The National Chamber of Exporters (NCE) says recent severe floods have heavily impacted Sri Lanka's export sector, flooding production facilities, damaging equipment and disrupting supply chains and shipments. The NCE is compiling damage assessments and urging urgent government support, especially for MSMEs.

BOI says all Free Trade Zones have resumed near‑full operations after Cyclone Ditwah, with notable damage only at Thulhiriya and one factory in Polgahawela. BOI restored electricity and water, attendance has dipped due to access issues and some firms have adopted WFH.

Colombo Stock Exchange opened December sharply lower as the ASPI fell 3.04% to 22,022.06 following Cyclone Ditwah; the S&P SL20 lost 2.89% and turnover topped Rs.5.2bn with foreign net outflow of ~Rs.106.2mn. Capital Goods and Banking led turnover while Access Engineering rose and several banks and John Keells fell.

Colombo Dockyard Plc (DOCK.N0000) delivered the ninth 5,000 DWT Eco Bulk Carrier 'Misje Sakura' to Misje EcoBulk AS of Norway, ahead of the contractual delivery date. The DNV-classed hybrid vessel includes an Energy Storage Battery System for electric hybrid propulsion and supports export earnings.

Cycle Pure Incense (Suwanda Industries) was recertified as a ZeroCarbon® Manufacturer for 2025, reaffirming its status as Sri Lanka’s only carbon-neutral incense-stick manufacturer. The certification followed an SFG audit that cited the company’s adoption of renewable energy and improved energy-efficiency practices.

Ceylon Chamber of Commerce chair Krishan Balendra opened the Sri Lanka Economic & Investment Summit 2025, said growth is approaching 5% of GDP and announced all summit social funds will be redirected to Cyclone Ditwah relief. He urged private-sector support for recovery and highlighted strong foreign investor participation.

Colombo Stock Exchange fell 3.04% (690.76 pts) to 22,022.06 after Cyclone Ditwah, with selling across the market; construction names saw buying—Access Engineering +2.40 to 74.00, Kelani Cables +34.00 to 1,139.50, ACL Cables +3.00 to 225.00.

Sri Lanka's current account recorded a $199.5m deficit in October 2025, the second consecutive monthly deficit, narrowing the YTD end‑October surplus to $1.65bn. Imports rose 26.7% YoY in October while exports fell 0.7% YoY; remittances and tourism helped inflows, reserves were ~$6.2bn and the rupee was down ~5% YTD.

The Industry and Entrepreneurship Development Ministry and Industrial Development Board launched an online data-collection initiative to assess adverse-weather impacts on small and medium-scale industries and urged establishments to submit disruption details via the online form.

President Anura Kumara Dissanayake met the Ceylon Chamber of Commerce to seek business cooperation for disaster relief and to ensure the industrial sector is not hampered. The chamber raised issues affecting tourism, airports and transport, and discussions covered restoring electricity, drinking water and infrastructure such as highways and bridges.

Gross dollar inflows were $2,357m in October 2025, $200m higher than imports of $2,157m, while the goods trade deficit was $1,007m. A surge in private credit lifted investment goods and vehicle imports (personal vehicle imports rose to $205.6m from $2.0m a year earlier).

CSE closed two hours early due to cyclone Ditwah; the ASPI rose 0.35% to 22,742.46 on turnover of over Rs.1.9bn, with foreign investors net selling Rs.326.3m (month-to-date outflow Rs.3.7bn). Top contributors were BUKI, AEL, BIL, LOLC and DOCK.

CBSL's Apr–Sep 2025 survey shows agriculture and personal loans led the strongest month-to-month turnaround in private sector lending, shifting from net repayments in May–June to sustained positive flows (agriculture: Rs.31–35bn in Jul–Aug; personal loans: Rs.60bn in June, 26.0% share in Sept).

Colombo market slid as the ASPI fell 0.80% (182.14 pts) to 22,662.09 and turnover dropped to about Rs.2.34 billion, a near five-month low. Banking counters (SAMP, COMB, HNB) and names including RICH, Hemas, Access Engineering, ACL Cables and Diesel & Motor drove the declines and top turnover.

Sri Lanka's Embassy in Bahrain facilitated the entry of Revello chocolates by CBL Foods into the Bahraini market, with the first consignment available from early December at Lulu Hypermarket. The move is intended to strengthen trade ties and raise visibility for Sri Lankan products in Middle Eastern retail channels.

MarketsandMarkets projects the electric 3-wheeler market to grow from USD 2.68bn in 2025 to USD 3.85bn by 2032 (CAGR 5.3%) and names Sri Lanka the fastest-growing country in Asia Pacific for the segment. The report cites lower operating costs, higher fuel prices, battery advances, subsidies and notes local makers SL Mobility and Ideal Motors.

The Joint Apparel Association Forum said apparel and made-up articles exports rose 6.12% YoY in Jan–Oct 2025, while October was essentially flat (-0.05%). EU demand led growth (Oct +12.53%, Jan–Oct +14.05%), while US and UK shipments lagged (Oct -1.92% and -11.99%).

The Cabinet approved compensation for employees who lost jobs due to closure of weaving mills in Thulhiriya and Pugoda, covering 15 employees of Karbul Lanka Ltd and 169 former employees. This follows a May 26 decision that paid 1,656 other employees and reimburses those who missed the initial application window.