News & market updates

The Council for Business with Britain elected Ameena Ziauddin as President at its 26th AGM and named a 2026–27 committee including Aitken Spence Travels, Hayleys, John Keells and invited Commercial Bank's CEO to serve. The UK Developing Countries Trading Scheme and rising British tourist arrivals were highlighted as opportunities for exporters and tourism.

UK High Commissioner urged Sri Lankan businesses to use the Developing Countries Trading Scheme (DCTS), which offers zero-tariff access to the UK and whose January 2026 reforms expand preferential access for the apparel sector, boosting export opportunities for Sri Lankan firms.

Dividend · Rs 0.11 · XD Jul 9, 2026

First Interim dividend of LKR 0.11/share; XD 2026-07-09; record 2026-07-09; payable 2026-07-21; FY 2026/2027

Dividend · Rs 0.75 · XD Jul 9, 2026

First Interim dividend of LKR 0.75/share; XD 2026-07-09; record 2026-07-09; payable 2026-07-22; FY 2026/2027

Dividend · Rs 0.37 · XD Jul 9, 2026

First Interim dividend of LKR 0.37/share; XD 2026-07-09; record 2026-07-09; payable 2026-07-22; FY 2026/27

Colombo headline inflation rose to 6.8% Y-o-Y in June 2026 (from 5.5% in May), with a 2.1% month-on-month increase driven by food (fish, vegetables) and non-food items amid energy price pass-through. The Central Bank projects inflation to remain above the 5% target near term before easing, with elevated uncertainty due to Middle East tensions.

The government will phase out para-tariffs starting in 2028 — removing 50% of the cess for most products in 2028, a further 25% in 2029 and fully by 2030, while 107 HS codes follow a slower 25%/25%/50% timetable. Customs reforms also include a simplified four-band tariff (0/10/20/30%), greater digitalisation and new non-intrusive scanners to speed clearance.

Asian stocks closed a strong quarter — Japan's Nikkei is set for a ~36% quarterly rise and South Korea's KOSPI about 65% — as a resurgent dollar (index +1.3% this quarter) pushed the yen to a four-decade low of 162.41 and sent gold sharply lower; Brent crude at $72.49/bbl.

TFGL and GLX launched Cohort 1 of Project Hyacinthesis, an eight-month accelerator onboarding six SMEs to develop market-ready handicrafts, fashion and homeware from water hyacinth; the project is engaging government to amend the 1909 ordinance to enable commercial use and export potential.

Two Sri Lankan exhibitors, Asiabika Industrial Ltd and Samson Rubber Industries, showcased rubber products at EUROBIKE Frankfurt 24–27 June 2026 to promote exports and connect with international buyers. The participation aimed to create networking and business-development opportunities for Sri Lankan manufacturers.

The Thailand–Sri Lanka forum highlighted the newly enacted SLTFTA and reported bilateral trade rose 48% to $649m in 2025. Officials said the FTA and related measures should expand market access and investment across logistics, manufacturing, tourism, food processing, IT and healthcare.

The Sri Lankan rupee depreciated 8.0% against the US dollar in 2026 up to June 26, the Central Bank reported; the CBSL showed the dollar buying rate at Rs.332.22 and selling at Rs.341.88 on June 26. The move will materially affect exporters and tourism-related sectors via revenue and cost translation.

Government aims to build coconut and food & beverage exports to USD 3.0bn in two years (USD 2.0bn coconut, USD 1.0bn food & beverage) and pledged incentives, support for value-added production, streamlined raw-material imports and industry establishment in the Northern Province.

Government tabled its Fiscal Strategy Statement for 2027 and defended recent tax amendments, clarifying that digital VAT targets non-resident service providers and that the reduction of the compulsory VAT registration threshold from Rs.60m to Rs.36m has been postponed.

Colombo Crimes Division seized suspected counterfeit Caltex and Delo engine oil from two retailers (SF Marketing in Mawanella and J.W. Auto in Kegalle) during raids on 2 June 2026; the matters are before Mawanella and Kegalle Magistrate’s Courts and the accused were granted Rs. 10 million surety bail. Authorities say counterfeit lubricants risk engine damage, increased emissions and environmental harm, and investigations are ongoing.

Colombo bourse finished the week higher, with the ASPI up 0.21% and the S&P SL20 up 0.51%; yesterday ASPI closed at 22,409.81 and the S&P SL20 at 6,247.42. Turnover topped Rs.1.9bn with foreign net inflow of Rs.9.3m; COCR, PKME and SIL led turnover while ACL fell and Hayleys, HNB Finance, Lanka Realty and CIC posted gains.

Deputy Finance Minister Anil Jayantha said Sri Lanka cannot cut domestic fuel prices despite a fall in global oil prices because existing term tenders lock in future deliveries and pricing. He noted term contracts base shipments on earlier months' prices and recalled fuel prices have risen about 50% since Feb 28.

Sunshine Holdings, in a JV with Zydus Lifesciences (Zydus Sunshine Lifesciences Pvt Ltd), will build a US$20 million pharmaceutical manufacturing plant on nearly four acres in the BOI zone at Horana to supply Sri Lanka's retail market. The project will focus on local production, technology transfer and job creation under NMRA oversight.

Sunshine Holdings PLC and Zydus Lifesciences formed Zydus Sunshine Lifesciences Pvt Ltd with an investment commitment of over USD 20 million to build a pharmaceutical manufacturing facility at the BOI Horana to boost local production and reduce import reliance.

Asian shares pulled back after Apple raised iPad and MacBook prices (Apple shares slid 6.1%), denting chip stocks and sending MSCI’s Asia‑Pacific ex‑Japan index down 3.8%; the yen hovered near 40‑year lows and Brent crude fell to $73.9/bbl.

Deputy Minister Chathuranga Abeysinghe said Sri Lanka's handloom sector should be repositioned as an 'industry of the future' with untapped export potential, urged greater private investment, and announced government plans to restructure the EDB, Department of Textiles, Laksala and Salusala to support growth.

Colombo Stock Exchange closed flat (ASPI +0.01% to 22,409.81) on Friday with market turnover of Rs1.91bn. Top contributors included DFCC, Melstacorp and Central Finance while John Keells, Access Engineering, Haycarb and Aitken Spence lagged; Nations Trust Bank announced allotment of its Basel III Tier 2 debenture issue and its shares closed at Rs318 (-0.08%).

NCQP 2026 was held on 17 June in Colombo with 2,000+ delegates from 100+ organisations and 450 improvement teams; the Sunil G. Wijesinha QC Circle Excellence Awards went to Team ThreadX (MAS Bodywear) and Team Saviya (Elastomeric Engineering).

Colombo Stock Exchange closed higher with the ASPI up 0.89% to 22,407.04 and the S&P SL20 up 0.99% to 6,242.75 on Rs.2.72bn turnover; foreign investors were net sellers of Rs.50.3m.

EDB Chairman Mangala Wijesinghe said Sri Lanka aims to more than double export earnings to $36 billion and is evaluating petroleum-linked and logistics proposals to help reach that target. He said implementing NEDP reforms on trade facilitation and the export ecosystem is essential to meet the five-year export goals.

EDB Chairman Mangala Wijesinghe said rupee-to-rupee trade with India could lift bilateral commerce by about 30–40% within two years (15–20% in year one) by enabling direct INR–LKR settlements. The initiative, supported by the Indian High Commission and CBSL and involving local and Indian banks, is intended to cut dollar demand, lower transaction costs and reduce exchange-rate volatility.

IFC will invest up to $10 million in New Anthoney’s Farms Group to scale poultry capacity, targeting exports of 1,936 tonnes annually (a 29% rise from 2024) and creating over 900 jobs. The funding includes up to $5m from GAFSP and aims to benefit ~200 smallholder farmers.

Asian equities surged after strong Micron and Qualcomm earnings eased AI-related worries, lifting MSCI Asia-Pacific ex-Japan about 1.6% with Japan's Nikkei >4% and South Korea's KOSPI +5.5%. Oil fell to roughly $72.5/bbl and gold slid below $4,000 amid a firmer dollar and lingering rate-hike expectations.