News & market updates

The Committee on Public Finance approved submitting to Parliament a Customs Ordinance resolution and two Export Development Act orders to implement a National Tariff Policy that restructures import duties into four bands (0%, 10%, 20%, 30%) from 1 April 2026 and reduces ceramic-tile taxes to 20% by 2029. The reforms aim to simplify tariffs, phase out para-tariffs by 2029 and support the EDB’s target to double exports from US$18bn to US$36bn over five years.

The ASPI fell 0.61% (133.80 pts) to 21,828.50, extending its slide to a seventh straight session. Market turnover was Rs.2.25bn on 210.1m shares with foreign net selling of Rs.22.5m and major negative contributors including Sampath, Hayleys, Dialog, LOLC and HNB.

Yesol Lanka, a BOI-approved Puttalam venture, converts fish-processing waste into exported fishmeal, fish oil and paste, shipping 30,000–35,000 tonnes annually and earning $2–2.5m. The $3m plant can process up to 100 mt/day, employs 45 directly and pays collectors Rs.20–30/kg.

Hela Apparel Holdings (HELA.N0000) has appointed Emerald Investments Ltd to manage its Egypt manufacturing facility under a Management Service Agreement signed 7 June through 31 December 2026, with an option for Emerald to acquire the unit; the move aims to address working capital constraints and maintain production.

Asian shares rose as semiconductor stocks rebounded while Brent crude jumped to about $78.65/bbl after renewed Gulf hostilities, pushing up global bond yields and increasing markets' bets on further Fed rate hikes.

The Ceylon Chamber's Commercial Documents Registration Division introduced a Free Sale Letter for pharmaceuticals to expand export documentation support for Sri Lankan pharmaceutical manufacturers and exporters. The division also issues Certificates of Origin and other certified export documents via a 24/7 e-service and e-DAS attestation.

Developing Asia received $644 billion in FDI in 2025 (about 40% of global FDI and over 70% of flows to developing economies), according to UNCTAD. Investment shifted toward South‑East Asia and India (India +44%), with growing flows into semiconductors, digital infrastructure, advanced manufacturing, pharmaceuticals and energy‑transition technologies.

BOI-approved Yesol Lanka in Puttalam converts fish-processing waste into export-ready fishmeal, fish oil and paste, exporting 30,000–35,000 mt annually and earning US$2–2.5m a year. The US$3m plant employs 45 people and has an installed capacity to process 100 mt of waste per day.

Sri Lanka's cabinet approved seeking parliamentary approval for new import/export regulations making export licenses mandatory for scrap metal and requiring prepayment-imported goods to arrive within 180, 365 or 730 days of payment. The regulations were published in the extraordinary gazette and will be submitted to parliament for approval.

Colombo Stock Exchange fell for a sixth straight session as the ASPI dropped 0.54% to 21,962.30. Turnover exceeded Rs.1.5bn with foreigners net sellers of Rs.185m; major drags included Melstacorp, John Keells, Carson Cumberbatch and CIC Holdings, while Access Engineering and Chevron Lubricants featured among top contributors.

The Cabinet approved submitting Import and Export (Control) Regulations Nos. 05 and 06 of 2026 to Parliament, introducing mandatory export licences for discarded metal and scrap exports and new import prepayment timeframes of 180, 365 or 730 days for goods. The measures aim to protect domestic industries and strengthen trade oversight.

Colombo bourse fell with the ASPI down 0.61% to 21,828.50, led by capital goods turnover; Industrial Asphalts jumped 60% after agreeing to sell a 48.03% controlling stake. Hela Apparel’s subsidiary signed a management services agreement amid working capital challenges.

The National Chamber of Exporters opened applications for the 34th NCE Export Awards, closing Sept 30, 2026, with the awards ceremony on Dec 11 at Shangri‑La Colombo. Ex-Pack Corrugated Cartons PLC is the main sponsor and Dialog Enterprise is the event's digital technology partner.

Exhibitor registration for Sri Lanka Expo 2027 is open until 31 July 2026. The expo runs 14–17 Jan 2027 at BMICH with 650 booths across 25 sectors and offers opportunities to meet over 1,500 global buyers.

The IMF held talks with the Revenue Administration Reform and Modernisation Bureau (RARMB) and agreed to continue providing technical assistance for reforms to customs, the Inland Revenue Department and excise. RARMB restructuring and measures have lifted tax compliance from about 40–45% to 70–75% and include digital transformation, data integration and a drafted Customs amendment bill.

Colombo Stock Exchange fell, with the ASPI down 0.39% to 21,995.04 and the S&P SL20 down 0.27% to 6,150.33. Top negatives included Melstacorp, John Keells and Carson Cumberbatch while Digital Mobility Solutions, Royal Ceramics and Haycarb were positive; turnover was LKR 1.13 billion.

JAT Holdings (JAT.N0000) has broken ground on the Rs. 4 billion JAT Astera Residencies in Thalawathugoda, a 12-storey project of 104 apartments and six penthouses, with piling work started by Sincon Piling.

EDB says the proposed 12.5% US tariff on imports from Sri Lanka is not new and relates to an ongoing reciprocal tariff process, and officials are seeking to avoid the levy by concluding a trade agreement. Sri Lanka must file an appeal by 9 July and the proposed tariff would take effect on 24 July unless amended.

The government has revoked the Gazette restriction banning the use of rice and paddy in animal feed, restoring permission for their processing, purchase, sale, transport, storage and distribution for feed production with effect after 24 June.

The Sri Lanka Export Development Board has kept online exhibitor registration for Sri Lanka Expo 2027 open until 31 July 2026. The expo will run 14–17 January 2027 at BMICH with 650 booths and opportunities to meet over 1,500 global buyers across 25 sectors.

CIPM convened a roundtable of 30 stakeholders to address Sri Lanka's widening skills gap, noting shortages across IT, tourism, construction, manufacturing and healthcare and recommending industry-academia partnerships, vocational reforms and upskilling initiatives.

UN Global Compact Network Sri Lanka hosted CATALYZE 2026: Environment, a two-day forum on corporate environmental sustainability; Sampath Bank was main partner and listed firms including Dilmah, Teejay Lanka, Hayleys, Talawakelle, Commercial Bank and Kelani Valley participated as partners or patrons.

Samsung flagged a 19-fold jump in Q2 operating profit to 89.4 trillion won and revenue up about 129% to 171 trillion won. Shares fell as investors worried the AI-driven memory chip boom and related data-centre spending may not be durable despite rising memory prices.

Asian shares eased as investors awaited a key AI earnings season and oil slipped after OPEC+ raised output targets; softer U.S. payrolls and lower energy costs cut the chance of an imminent Fed hike. Futures imply about a 78% probability of no rate change at the July 29 meeting.

Sri Lanka and Pakistan agreed to boost bilateral trade, investment and entrepreneurship through initiatives including technology exchanges, export facilitation and a planned business forum in Pakistan. Measures include gem & jewellery tech programs, steps to reverse tea export declines, opening pineapple/avocado exports and exploring Pakistani investment in Sri Lankan pharmaceutical manufacturing.

Colombo Stock Exchange ASPI fell 0.38% to 22,093.51 on Monday with turnover of 1.35 billion rupees. Negative contributors included HNB (down to 396.75) and Dialog Axiata (45.50), while Lion Brewery (1,834) and Haycarb (160.50) led gains.

CEAT Kelani launched two new SUV tyres — SecuraDrive (215/65 R16) and CrossDrive AT (245/70 R16) — expanding its Sri Lanka radial portfolio to 82 variants; both are R&D-backed, come with a four-year warranty and are available via 550+ dealers.

SLAM Power Solutions and Ceyring commissioned Sri Lanka's first industrial-scale BESS integrated with solar at Ceyring's Horana factory — a 125 kW / 241 kWh BSLBATT system paired with an existing 100 kW rooftop PV. The installation is designed for peak shaving, grid-failure backup and smoothing solar output for industry.

Sri Lanka's Export Development Board and Germany's Import Promotion Desk renewed an MoU to boost market access for export-oriented SMEs through trade promotion, technical expertise, capacity building and market access facilitation. The deal emphasizes support for natural-ingredients exporters and women-led enterprises.