News & market updates

The Economic Monitoring Committee has started assessing the economic fallout from the Middle East crisis, flagging risks to foreign-exchange flows, higher energy costs and impacts on remittances, trade and tourism that could affect market stability.

SLFPA and LECS will stage Profood Propack & Agbiz Knowledge Hub 2026 at BMICH, Colombo from 21–23 August 2026. The sector-wide expo, endorsed by the Ministry of Industries, focuses on food processing, packaging and agri innovation and lists Cargills (Ceylon) Plc among its platinum sponsors.

Sri Lanka has been endorsed for a Kunming Biodiversity Fund project to implement a national biosecurity system targeting invasive species, including updating the national priority species list, a national digital monitoring system, stronger border controls and community restoration programs.

Asia Securities convened 150+ investors and corporate leaders at the Sri Lanka Investor Conference 2026 to present a constructive capital-market outlook, with speakers citing roughly 4% GDP growth prospects for 2026. Panels highlighted construction, banking/finance, consumer and digital sectors as key growth drivers and projected strong corporate earnings expansion.

Sri Lanka's Industry and Entrepreneurship Development Ministry and EDB held diplomatic meetings to promote Sri Lanka Expo 2026 (18–21 June 2026 at BMICH) and attract international buyers and investors. The outreach targeted participation across apparel, tea, spices, rubber, ICT services, food & beverages and industrial manufacturing.

Ceylon Chamber of Commerce handed over its historical records (1839–1973) to the National Archives Department. The archive contains correspondence, minutes, reports and ledgers documenting the evolution of trade, tea and rubber auctions, and business-driven infrastructure initiatives.

The Economic Surveillance Committee met at the Presidential Secretariat to discuss urgent measures to stabilise Sri Lanka's economy amid the Middle East conflict, focusing on risks from fuel imports, remittances, trade, tourism and export links.

The Government has formed an Economic Surveillance Committee chaired by Labour Minister Dr. Anil Jayantha Fernando to monitor and recommend responses to the economic fallout from the Middle East conflict, which risks higher fuel costs, reduced remittances (about 1 million migrant workers) and FX pressures. UNCTAD warns Strait of Hormuz disruptions have pushed Brent above $90 and could raise freight and fertiliser costs, amplifying spillovers to trade and vulnerable economies.

Cabinet approved a relief package to support replanting of tea, rubber and coconut after extreme weather, offering up to Rs. 500,000/ha for tea, Rs. 400,000/ha for rubber and Rs. 750,000/ha for coconut. Payments will be made based on assessed losses to help restore production and protect export revenues.

Fitch warned the Iran conflict could raise credit risks for emerging markets such as Sri Lanka by raising energy prices and disrupting remittances, exchange rates, fiscal subsidies and access to international finance.

Sri Lanka is strengthening global trade partnerships to promote Sri Lanka Expo 2026 (18–21 June 2026 at BMICH, Colombo), aiming to attract international buyers and investors across apparel, tea, spices, rubber, ICT services, food & beverages and industrial manufacturing. A high-level EDB and ministry delegation met UK, Indonesian and Korean envoys to boost participation.

Nestlé Lanka will invest Rs. 9 billion over the next four years to expand its Pannala manufacturing facility, focusing on scaling coconut milk powder production for export. The company said it will not reduce staff, supports thousands of farmers and aims to be 100% plastic neutral by 2026.

The Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026 (18–21 June at BMICH), offering 650 booths and opportunities to meet over 1,500 global buyers; applications close 31 March 2026. Sectors covered include industrial and agro-industrial products and services such as ICT, tourism, renewable energy and healthcare.

Sri Lanka's Cabinet approved a relief package to support re-cultivation of export crops, offering up to Rs750,000/ha for coconut, Rs500,000/ha for tea and Rs400,000/ha for rubber. Payments will be provided based on the extent of damaged land and follow earlier relief for paddy, vegetables, fruits and minor export crops.

UN Global Compact Network Sri Lanka launched a Country-Level Environmental and Supply Chain Sustainability Working Group strategy and held January 2026 kick-off sessions to mobilise 70+ companies across five thematic working groups. The initiative focuses on climate mitigation/adaptation, water and ocean stewardship, and supplier capacity building to advance sustainability and regulatory-aligned disclosure.

Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026, a four-day international trade exhibition from 18–21 June 2026 at BMICH offering 650 booths and access to over 1,500 global buyers; application deadline is 31 March 2026.

Government will maintain cost-reflective pricing for fuel and electricity despite rising global oil prices, avoiding subsidies that would burden state finances. Officials warned this could cause a short-term inflation spike to around 5–6% and dent export competitiveness (tea exports are exposed to the Middle East).

Fitch warns the Iran conflict could raise credit risks for emerging-market sovereigns by raising global energy prices and straining remittances, fiscal subsidies, exchange rates and access to finance; hydrocarbon exporters could benefit while importers (e.g. Pakistan, Egypt, Philippines, Ukraine) are more vulnerable.

President says the Central Bank submitted a scenario analysis on the Middle East conflict's economic impact to the government and that the worst-case outcome is unlikely. Authorities are preparing contingency plans affecting tourism, tea exports and port logistics and are seeking Indian support for the tea sector.

The CSE fell, with the ASPI down 4.34% (1,032.15 points) for the week as index-heavy banking and diversified holdings stocks dragged the market. Foreign investors were net sellers (week net outflow Rs.791.2m); large declines came from JKH, HNB and SAMP while ACL, CINS and RAL saw heavy off‑board turnover.

The Science and Technology Ministry opened the 'Harvest Centre' technology incubation centre at the University of Ruhuna Faculty of Agriculture to support agribusiness and food-technology startups in the Southern Province. The centre will provide lab testing, packaging advice and technical and management support to help SMEs add value and access domestic and export markets.

Sri Lanka's tea industry may lose USD 10-15 million per week as the Middle East conflict has halted shipments to the region. About 52% of exports go to the Middle East; auction prices fell ~Rs.50/kg overall and ~Rs.75/kg for low-grown tea, and exporters are seeking government support for cash-flow and added freight/insurance costs.

Saliya Pieris warned Sri Lanka faces economic fallout from the Middle East war, citing rising global oil prices and curtailed gas output, FX volatility, potential drops in European and Middle Eastern tourist arrivals, disruptions to tea exports and risks to remittances, and urged early policy responses.

MullenLowe Group Sri Lanka retained Effie Agency of the Year for 2025 (third consecutive), winning 21 accolades including one Gold and three Silver awards; Watawala Tea was among the clients recognised.

The Sri Lanka Export Development Board held a Regional Exporters Networking Forum in Matara to identify Southern Province exporters' challenges and explore new export opportunities, with nearly 250 exporters and senior officials participating. The EDB collected issues beforehand to focus discussions and aims to reduce regional export disparities.

Sri Lanka will set up a Cabinet-approved committee, appointed by the Agriculture Secretary, to decide maize prices and develop a formal import methodology; imports for registered animal feed producers will be supervised by the Department of Animal Production and Health and the Department of Agriculture.

Sri Lanka's cabinet approved removing cess on 2,634 imported goods in stages through to 2029, phasing para-tariffs from 25% to 50% and up to 100%, while saying domestic industries will be protected.

ASPI plunged 1,290.68 points (-5.4%) to 22,443.38 on Feb 3 after Middle East tensions triggered panic selling and a 30-minute circuit breaker; the S&P SL20 fell 322.32 pts (-4.9%). Turnover was Rs.9.6bn (up 62.9%); foreign investors net sold Rs.59.6m; decliners included COMB, SAMP, HNB, JKH and HAYL, while LIOC, CFLB, BOPL, MRH and MADU were among gainers.

First Capital Research says March 2026 Iran conflict risks could push Brent to $95–110/bbl and raise Sri Lanka's inflation, external deficits and market volatility, complicating monetary policy. It notes shipping diversions may boost Colombo's transshipment role and that equity corrections could offer selective entry points.

The Sri Lanka Export Development Board unveiled 'Edges of Sri Lanka' national branding alongside the official launch of Sri Lanka Expo 2026 to showcase the country's export and investment value proposition; the Expo will run 18–21 June 2026 at BMICH, Colombo.