News & market updates

Sri Lanka's rubber sector faces mounting cost, demand, disease and labour pressures, with 2025 rubber export earnings down to about USD 945m from ~USD 1.01bn in 2024. Removal of SVAT, a 15% wage rise, disease outbreaks and higher energy costs have suppressed prices, cut replanting and threaten long-term viability without policy support.

Dr. T. Senthilverl acquired a near 10% stake in Renuka Agri Foods PLC for Rs. 1 billion. Trading saw 82.36m Renuka Agri shares change hands for Rs. 1.14 billion and Renuka Foods PLC remains the biggest shareholder at 67.89%.

Dilmah Genesis and LSE South Asia Centre convened experts in Colombo who concluded Sri Lanka's recovery needs enterprise support that prioritises relational advice, trust and quality upgrading alongside finance to sustain entrepreneurial resilience. A White Paper with policy suggestions will be prepared for government and published online.

High Commissioner M. Rizvi Hassen said Sri Lanka will work to restore and deepen engagement with the Maldives, citing Bank of Ceylon’s 44-year presence and a goal to return to pre-2019 levels of 20,000–30,000 Maldivian visitors/residents. He highlighted opportunities across tourism, financial services, construction, agriculture and healthcare.

MTI Consulting CEO Hilmy Cader warned the Gulf war escalation could stress-test Sri Lanka’s economy by disrupting about 140 scheduled weekly Gulf flights and Gulf airspace. He said this would reduce hotel bookings, disrupt cargo and time-sensitive exports, and affect nearly 1 million Gulf-based workers and roughly US$1.5bn of exports to the Middle East.

A US-Israel strike on Iran and ensuing Strait of Hormuz disruption sent Brent crude up over 7% (above US$90) and led the Ceylon Petroleum Corporation to raise diesel prices (Auto +Rs4, Super +Rs6), threatening Sri Lanka's fuel supplies, tea exports and imports of construction materials.

Colombo stock market closed February lower: ASPI fell 47 points (0.2%) and the S&P SL20 dropped 74 points (>1%) with turnover of Rs.7 billion. Banks, conglomerates and blue-chips (COMB, JKH, HNB, CTC, LLUB) weighed on the index while Renuka Agri Foods rose and foreign investors were net sellers of Rs.363.8m.

The US Supreme Court ruling rescinded IEEPA tariffs, reducing Sri Lanka's effective US tariff from about 31% to 21.6% and granting tariff-free access to an additional USD 65.1m of exports. Section 122, Section 232 and MFN tariffs still apply and potential rises (e.g. Section 122 to 15%) mean ongoing tariff uncertainty for apparel and other exports.

Colombo bourse turnover topped Rs.7.01 billion while the ASPI fell 47.17 pts to 23,734.06 and the S&P SL20 dropped 74.20 pts to 6,635.97. Renuka Agri Foods PLC accounted for Rs.1.14 billion of on-board trades; domestic buyers dominated and foreigners were net sellers (purchases Rs.164m, sales Rs.528m).

US Embassy Chargé d’Affaires Jayne Howell told an AmCham forum that deeper US engagement with Sri Lanka will depend on reciprocal trade, two-way FDI and predictable, transparent rules to attract American capital. She highlighted Port of Colombo expansion to 15m containers by 2027 and SelectUSA pathways for Sri Lankan firms to invest in the US.

Sri Lanka's tea exports in Jan 2026 rose 7% YoY to 20.71m kg, average FOB climbed 5.6% to Rs. 1,821.71/kg and export earnings were about $121.7m (up 8% YoY). Iraq remained the top importer (2.95m kg) while Türkiye surged 118% to 2.36m kg, with gains across all product categories.

The Cabinet approved a cooperation agreement between the Sri Lanka Export Development Board and the German Import Promotion Bureau to boost Sri Lankan exporters' access to German and wider European markets. The pact targets natural raw materials and IT outsourcing exporters, offering technical guidance, market intelligence and capacity-building for SMEs and women-led businesses.

Economist Talal Rafi urged a disciplined shift from stabilisation to growth, calling for trade and productivity-driven reforms alongside fiscal discipline and reserve accumulation. He noted debt-to-GDP has fallen to near 100%, IMF growth at ~2.9% (this year)/3.1% (next) and reserves projected to rise to ~$8.8bn by year-end.

The Export Development Board says Sri Lanka will host what is expected to be the country’s largest investment forum on June 10 to connect local exporters with global investors and buyers and expand export opportunities.

The Sri Lanka Export Development Board held a virtual meeting with New Zealand and Sri Lankan high commissions and business representatives to promote Sri Lanka Expo 2026 and boost bilateral trade. Sri Lanka's exports to New Zealand were about USD 31.24m in 2025, led by tea, garments, rubber and edible preparations.

Sri Lanka showcased plans at the India International Seaweed Expo 2026 to scale seaweed farming from small-scale cultivation to value-added processing and export-oriented supply chains. Officials and experts flagged needs for investment, species diversification, infrastructure and measures to manage climate and operational risks.

Cabinet approved an updated National Tariff Policy on Nov 3, 2025 after a comprehensive review to improve compliance, clarity and alignment with current economic and fiscal conditions; the revised framework is expected to enhance trade policy coherence and support fiscal objectives.

Sri Lanka’s export earnings in January 2026 rose 13.71% y/y to US$ 1,532.6 Mn. Merchandise exports increased 10.66% (US$ 1,165.02 Mn) and services grew 24.59% (US$ 367.55 Mn), with strong gains in tea, coconut products, electrical/electronics and ICT/BPM, while apparel and gems/jewellery fell.

CBL Group has acquired PT Tri Jaya Tangguh Indonesia, a large-scale coconut processing facility, in a transaction exceeding USD 25 million. The deal expands CBL’s manufacturing footprint in Indonesia to increase capacity, supply-chain resilience and its global coconut milk export capability.

The SEC and SLAASMB signed a Memorandum of Understanding to formalize cooperation on oversight of financial reporting and auditing for SEC‑licensed entities, including listed companies, establishing information‑sharing, referrals and joint awareness initiatives.

EDB ran a training program for potential exporters and SMEs on Incoterms, risk management and competitiveness; Chairman Mangala Wijesinghe said a five-year National Export Development Plan is being drafted and noted SME direct export contribution is under 5%. The workshop covered order negotiation, packaging, pricing, buyer trust and international payment methods.

Rajendra Theagarajah’s Cinnamon Global has deployed around $5m into growth-stage enterprises in Sri Lanka’s Northern Province, with typical tickets of $25k–$50k and a largest investment of $700k. The patient-capital fund targets agriculture value-add, aquaculture, ICT and logistics and has a $500k program for heritage rice using data-driven agronomy.

A two-week training program on Tropical Food Production and Processing Technologies, jointly organised by China (CATAS) and Sri Lanka’s ERD with the Department of Agriculture, concluded in Kandy on 28 January 2026, covering crop management and food-processing innovations.

Registered farmer organisations in Trincomalee donated over Rs. 3.7 million to the Government’s ‘Rebuilding Sri Lanka’ Fund. The cheque was handed to Secretary to the President Dr. Nandika Sanath Kumanayake by Trincomalee District Office officials and the District Farmers’ Organisation chairman.

Mr. Shamindra Vatsalan Rajiyah has tendered his resignation as Managing Director of the Company with effect from 19th February 2026.The Board of Directors resolved to appoint Mr. Vasantha Kumar Sanmugam, an Executive Director of the Company, as the Managing Director of Renuka Agri Foods PLC with effect from 19th February 2026.

Sri Lanka tea production in January 2026 was 20.68 M/kg, down 0.78 M/kg or 3.63% year‑on‑year. Low Grown output fell 7.32% to 12.32 M/kg while High and Medium Grown rose; 2025 tea export earnings were $1.51bn (up 6%).

Hayleys PLC won the Gold Award for Overall Excellence in Corporate Reporting at CA Sri Lanka's TAGS Awards 2025 for the fourth consecutive year, with the Group securing 21 awards including 14 Golds. Several listed firms on the shortlist also won sector awards, including Haycarb, Kelani Valley, Singer, Dipped Products, Alumex, Talawakelle, Horana and Kingsbury.

DealBook.lk, a joint venture between Frontier Capital Partners and Asia Capital Global Solutions, has launched as a digital marketplace to connect global capital with Sri Lanka's private-market corporate deals. The platform targets arrangers, investors and founders across infrastructure, energy, agriculture, healthcare and technology.

EDB, the Sri Lanka Embassy in Riyadh and the Saudi Food and Drug Authority held a webinar on Saudi export registration procedures for over 90 Sri Lankan exporters; Saudi was the 23rd export destination at $137.85m in 2025 (+13.3% vs 2024). The session covered registration, facility approval, inspection and clearance processes for poultry, fisheries, processed foods, frozen produce, beverages and herbal products and included a technical Q&A with SFDA officials.