News & market updates

The Embassy of Sri Lanka in Riyadh and the Saudi Food and Drug Authority held a virtual workshop on 10 February 2026 to guide more than 80 Sri Lankan food and beverage exporters on Saudi regulatory procedures and export requirements. The session covered fisheries, poultry, processed foods, fruits and vegetables, beverages and herbal products.

The Sri Lanka Export Development Board ran a Market Exposure and Capacity Building Programme alongside BIOFACH 2026 (9–14 Feb 2026) to prepare Sri Lankan SMEs in spices, coconut, dehydrated fruits and coffee for EU market access; activities included workshops, certification guidance, factory and supermarket visits and B2B matchmaking with EU importers.

JETRO Executive VP Okumura said JETRO aims to position Sri Lanka as an export hub linking India, the Middle East and Africa and will send a Japanese business delegation to Sri Lanka next month. She cited political stability, improving macro conditions and port infrastructure as drivers, noting interest across manufacturing, logistics, agri/food processing, electronics and mineral supply links.

The Export Development Board will host the Southern Province Regional Exporters’ Networking Forum in Matara on 24 Feb 2026 to identify exporters' challenges and explore growth opportunities. Exporters and officials from Galle, Matara, Hambantota and Monaragala will attend; Minister Sunil Hadunnetti will preside and EDB is collecting region-specific proposals.

Government issued new Strategic Development Projects regulations granting tiered corporate tax holidays (generally 5–10 years) with investment thresholds starting at >$50m and import-duty/VAT/PAL/CESS exemptions during implementation. Categories cover infrastructure/tourism, manufacturing and agriculture/ICT; motor vehicles excluded.

EU leaders endorsed a 'Buy European Only' policy; Frontier Research says it does not yet directly affect Sri Lanka but could hurt export earnings if GSP+ preferences are diluted. Key vulnerable sectors noted are tea, rubber and apparel, while stricter rules could also affect IT, medical services and electronics ties.

Hayleys PLC held the Chairman’s Awards 2025, with Haycarb PLC winning the Overall Award for innovation in specialty activated carbon for silicon‑carbon anode materials and Hayleys Fabric PLC winning an ESG award for a smart energy‑saving stenter system that cuts fuel use and CO₂ emissions. The awards highlighted innovations across energy transition, agriculture and logistics supporting exports and sustainability.

EDB, the Sri Lanka Embassy in Riyadh and the Saudi Food and Drug Authority ran a webinar on SFDA export registration procedures for Sri Lankan exporters, attended by over 90 companies. Presentations covered registration, facility approval and inspections for foods, beverages, fisheries and herbal products; Saudi was Sri Lanka's 23rd export market in 2025 with USD 137.85m exports (+13.3%).

Sri Lanka will participate at BIOFACH 2026 in Nuremberg (10–13 Feb 2026) with a Sri Lanka Country Pavilion organised by the EDB and NOCU, featuring eight certified organic exporters. The pavilion will showcase organic coconut products, spices (including PGI Pure Organic Ceylon Cinnamon), tea and other value-added goods, include SME promotion and live demos, and involve talks with international regulators to strengthen export standards.

The Export Development Board met with Sri Lanka's Honorary Consul to Hong Kong Hung Chiu Wah Derek to strengthen trade ties and promote Sri Lanka Expo 2026, focusing on expanding exports, buyer-seller linkages and boosting Ceylon Tea branding in Hong Kong.

Sri Lanka and Thailand finalized draft MoU and an Agreement to recruit 10,000 Sri Lankan workers for sectors including construction, agriculture, food & beverage, industry, education, aquatic processing and mining; drafts will go for government approvals and a ministerial signing is expected in Q1 2026.

Sri Lanka will participate in BIOFACH 2026 (10–13 Feb 2026) in Nuremberg with a Sri Lanka Country Pavilion organized by the EDB and NOCU featuring eight leading organic exporters. The pavilion will showcase certified organic products including PGI Pure Organic Ceylon Cinnamon and Pure Ceylon Tea and include SME promotion and regulatory cooperation to boost organic exports.

HNB MD/CEO Damith Pallewatte highlights HNB’s Sarusara agripreneur programme (15,000 participants to date, 30,000 target) and a 2026–2030 strategic plan. He warns of banking-sector challenges (liquidity, asset quality, digital risk) and urges ecosystem-building across exports, agriculture, tourism and digital services.

ASPI closed down 0.01% at 23,652.51 with turnover of LKR 4.8bn and net foreign outflow of LKR 42.7m. Banks led turnover (30%), food & beverage and capital goods together contributed 31%; top negatives were RICH, CFIN, JKH, RIL and AEL, while RAL saw net foreign buying and crossings were led by COCO, COMB and DOCK.

FAO Representative urges Sri Lanka to rebuild farming after Cyclone Ditwah with a resilience-focused reform agenda rather than simply repairing damage. Priorities include diversified cropping, build-back-better irrigation and roads, expanded crop insurance and rapid disaster financing, and stronger early-warning-to-action systems.

Sunshine Holdings reported 9MFY26 consolidated revenue up 8.1% to Rs. 48.9bn and EBIT up 1.2% to Rs. 7.5bn, while PAT fell 8.8% to Rs. 4.3bn. Healthcare remained the largest revenue driver but faced margin pressure from new pharma pricing, while agribusiness (Watawala) posted strong palm oil-led gains.

Ajay Banga (World Bank) warns 1.2 billion young people will enter the workforce in the next 10–15 years while only about 400 million jobs are expected, creating a vast shortfall. The World Bank proposes a three-pillar jobs strategy (infrastructure and skills, business-friendly rules, and scaling businesses) focused on infrastructure, agribusiness, healthcare, tourism and manufacturing.

IIX COO Angela Ng said IIX and LIIN have partnered to scale gender‑climate impact capital in Sri Lanka, with IIX having mobilised over $150m and targeting $100bn by 2030; Sri Lanka will host the Orange Forum in October. IIX has launched seven Orange Bonds and plans a $1bn Orange Private Fund.

Sunshine Holdings (SUN) reported consolidated 9MFY26 revenue of LKR 48.9bn (+8.1% YoY), Group EBIT of LKR 7.5bn (+1.2% YoY) and PAT of LKR 4.3bn (-8.8% YoY). Healthcare remained the largest contributor with margin pressure from a new pricing mechanism, while Agribusiness (Watawala) delivered strong revenue and margin gains.

Government ministries and the World Bank commenced stakeholder consultations on a proposed Four-Band Tariff Policy under the 2026 Budget to support domestic industries and boost exports.

The Colombo Stock Exchange closed down for a second session as the ASPI fell 0.43% (103.17 pts) to 23,651.09 with turnover over Rs.3.54bn and foreign net selling of Rs.465.9mn. Top negatives included SFCL, CARG, CFIN and DOCK, while RAL and EMER were among gainers.

EDB met with Hong Kong's Honorary Consul on 6 Feb 2026 to strengthen trade ties and expand buyer-seller linkages, highlighting Ceylon Tea's market potential in Hong Kong. They promoted Sri Lanka Expo 2026 (18–21 June at BMICH) and invited a Hong Kong buyer delegation to boost export opportunities.

Export Development Board hosted a networking session for new and potential tea and coconut exporters, attended by about 100 small and medium exporters. Speakers covered market entry, Coconut Development Authority exporter registration, branding and building international buyer relationships.

Sri Lanka will make sustainability reporting mandatory by 2028 for private companies with revenue above Rs. 10 billion, with the top 100 CSE-listed firms required to comply from 2025 under IFRS S1/S2. Parallel National Environmental Act reforms introduce strategic environmental assessment, load-based licensing and extended producer responsibility, and require board-level ownership of climate risks.

Hayleys Group held its Chairman’s Awards 2025, naming Haycarb PLC the Overall Winner for its specialty activated carbon for silicon‑carbon anodes for lithium‑ion batteries. Hayleys Fabric PLC won an ESG award for a Smart Energy Saving System (avoiding 159,600 kg CO₂e per machine annually) and group projects in coconut processing and logistics were also recognised.

Dilhan C. Fernando, Chairman of Dilmah Tea, warns 2026 could be the toughest year for tea growers as discount-driven demand, climate change and inequality force unsustainable practices, threaten livelihoods and food security, and risk long-term declines in tea quality.

The Export Development Board held a networking session for new and potential tea and coconut exporters with about 100 small and medium exporters attending; industry speakers provided guidance on market entry, exporter registration/compliance, branding and building buyer relationships.

Asia Siyaka Warehousing, a fully owned subsidiary of Asia Siyaka Commodities PLC (ASIY.N0000), became the world’s first tea logistics company to receive ZeroCarbon® certification. Its Muthurajawela warehouse also holds LEED and ISO 22000 certifications and can store up to 11 million kg of tea (29,000 pallet positions).