News & market updates

The Ceylon Chamber of Commerce will host a business networking session with a 30-member Indian Chamber of Commerce delegation on 28 July at the Hilton Colombo Residences to connect Sri Lankan firms with Indian companies. Participating sectors include manufacturing, construction, healthcare, IT, renewable energy and tourism.

Ceylon Chamber will host a business networking session with a 30-member Indian Chamber of Commerce delegation on 28 July at the Hilton Colombo Residences, offering Sri Lankan firms opportunities to explore trade, investment and partnerships across sectors including manufacturing, construction, healthcare, IT, renewables and tourism.

Green finance is emerging in Sri Lanka to channel investment into renewable energy, green bonds, ESG-linked lending and sustainable infrastructure to boost climate resilience and economic recovery. Banks, capital markets, developers, tourism operators and tech firms are highlighted as key participants.

Central Bank warns the public against informal plantation and forestry schemes promising monthly payouts or large end returns and urged investors to seek refunds and report non-compliant firms. It also instructed media to verify Central Bank licences before accepting ads that solicit deposits.

CBSL Governor said private sector credit expanded 27.8% year-on-year in the first five months of 2026, with outstanding private credit at Rs.11.04 trillion in May. He said the 100-basis-point policy rate hike in May and other measures are expected to gradually moderate credit growth and demand pressures.

Sri Lanka's export earnings rose 7.96% YoY to $9.01bn in Jan–Jun 2026, with June exports at $1.65bn (up 12.5% YoY). Merchandise exports were $7.07bn (up 8.95%) and services $1.93bn (up 4.49%), led by ICT/BPM, EECs, processed foods and coconut products while tea fell 5.69%.

Hayleys Agriculture Holdings opened Hayleys Nature Nest, Sri Lanka's first frozen concentrated coconut water manufacturing facility to produce premium concentrated coconut water for export. The facility is intended to boost value-added agricultural exports and support local coconut growers.

Sri Lanka's Industry Minister Sunil Handunneththi visited India (14–18 July 2026) to advance cooperation in textiles, manufacturing, agribusiness, technology, investment and tourism. He met Indian textile ministers at BharatTex, toured RIICO's industrial park and a Mega Food Park, held a FICCI roundtable and discussed direct air links and investment opportunities.

Sri Lanka's merchandise exports rose 15.09% to US$1,314.10mn in June 2026, led by electrical & electronic components (exports up over four-fold), boat building and petroleum products. Cumulative Jan–Jun exports rose 8.95% to US$7,073.31mn, while tea, coconut and apparel exports declined.

Hayleys PLC's transportation and logistics arm Advantis has embedded an ESG strategy (HELIOS) across its operations and launched Advantis Blue C and Advantis Green C ecosystem restoration programmes, including mangrove projects and an MoU with Horana Plantations.

Consumers increasingly expect ethical, transparent supply chains across clothing, food and electronics, valuing honesty and evidence of remediation over perfection. Companies face reputational and regulatory risk from false claims and must audit and monitor suppliers rather than rely on one-off checks.

Adopting circular economy practices can turn Sri Lanka's municipal, agricultural and industrial waste into economic value through recycling, reuse, and waste-to-energy, improving resource efficiency and creating jobs. Opportunities span manufacturing, construction, agriculture, packaging/retail, and digital technologies for material tracking and financing.

Hayleys Plantations launched 'Regenerate', a unified ESG roadmap joining Talawakelle (TPL), Kelani Valley (KVAL) and Horana (HOPL) across 55 estates and ~14,000 ha with 2030 targets including a 42% reduction in Scope 1–3 emissions and 95% renewable-energy reliance. The plan also targets 90% regenerative agriculture, zero deforestation, 100% supplier ESG screening and digital/AI monitoring.

The Colombo Tea Traders' Association held its 132nd AGM on 17 July, re‑electing Lushantha de Silva as chairman and appointing a Board that includes Kelani Valley and Malwatte Valley Plantations. CTTA emphasised value addition, premium branding and sustainable reforms to boost Ceylon Tea exports.

New Anthoney's is scaling antibiotic-free Harithahari chicken to counter routine antibiotic use in Sri Lanka's poultry, where a study found 98% of farms use antimicrobials and tetracycline resistance reached 81.8%.

Sri Lanka's total exports reached an estimated US$ 9,012.24 Mn in Jan–Jun 2026, up 8% y/y; merchandise exports were US$ 7,073.31 Mn (+8.95%) and services US$ 1,938.94 Mn (+4.49%). Electrical & electronic components, rubber, food & beverages and spices recorded strong gains in June, while apparel exports fell 11.74% y/y.

World Bank lead economist Dr. Harsha Aturupane warned Sri Lanka must reverse anti-export policies and reconnect with global markets to restore innovation and competitiveness. He cautioned ICT/BPM faces disruption from AI and noted low global value-chain participation (8.1% vs 26% India, 34% Vietnam).

Hayleys PLC (via Hayleys Agriculture) opened Sri Lanka's first frozen concentrated coconut water manufacturing facility to produce premium concentrated coconut water for export. The investment is aimed at boosting value-added agricultural exports and supporting local coconut growers.

Sweden will send a trade delegation to Sri Lanka Expo 2027, Ambassador Jan Thesleff confirmed, with preparations underway to bring Swedish buyers and investors to the Colombo event (14–17 Jan 2027). Discussions identified export opportunities in cinnamon, coconut products, gems & jewellery, apparel and IT services for Nordic markets.

IMF's Ranil Salgado said rising oil prices from a widening Middle East war and a weak El Niño monsoon are the biggest downside risks to India's FY27 GDP, and the IMF cut its 2026/27 growth forecast by 10 bps to 6.4%. The IMF will reassess India's national accounts after the statistics office rebases GDP to 2022/23, expected by end-2026.

Sri Lankan exporters must prepare for new EU sustainability rules—EmpCo (from 27 Sep 2026), PPWR (from 12 Aug 2026) and EUDR (due diligence from 30 Dec 2026)—which expand scrutiny of claims and supply chains and carry penalties up to €2m or 4% of turnover.

The Planters' Association of Ceylon warns organised theft of high-value crops (pepper, cardamom, cinnamon, vanilla, avocado) is costing the plantation sector millions, eroding export competitiveness and deterring investment. The PA calls for tougher penalties, traceability and verified loss data as producers spend tens of millions on security.

The Planters' Association has urged the Government to curb organised theft of high-value plantation crops, saying losses may run into millions and one RPC is spending ~Rs.20m over three months on security, deterring investment and harming export competitiveness; it calls for tougher penalties and traceability.

Colombo Stock Exchange ASPI was up 0.06% at midday (13.19 pts to 21,221.29) with market turnover LKR 358.7m and Food, Beverage & Tobacco leading turnover at LKR 201.3m. Positive contributors included John Keells, Dialog, Aitken Spence and Browns; HNB, DFCC and Ceylon Grain were top negatives; Tess Agro listed 125,000,000 shares effective July 21, 2026.

Sri Lankan exporters are being urged to prepare for new EU sustainability rules — EmpCo, PPWR and EUDR — with compliance timelines from Aug–Dec 2026 and penalties up to €2m or 4% of turnover. The measures target sectors including tea, food/agriculture, apparel, rubber, plastics, fisheries and tourism; Peterson Solutions is offering guidance and a free ESG webinar on 29 July 2026.

Egg prices rise from today to Rs.41 (white) and Rs.42 (red) after the All Ceylon Egg Producers Association said maize import suspensions and feed shortages — and use of poor alternative ingredients — have cut egg production by 20–30% and led to poultry deaths.

Sweden's ambassador reaffirmed plans to bring a Swedish trade delegation to Sri Lanka Expo 2027 (14–17 Jan 2027) to connect Swedish buyers with Sri Lankan exporters, highlighting opportunities in cinnamon, coconut products, gems & jewellery, apparel and ICT.

The Exporters Association of Sri Lanka urged the government to adopt a transparent, risk-based approach and publish operational guidelines before enforcing new import rules banning goods linked to forced labour, warning unclear procedures could disrupt trade and raise compliance costs.

Colombo's ASPI fell 1.7% this week while turnover hit a 65-week low of about Rs. 722.64 million; top drags on the index included John Keells (JKH), PKME and NDB. Banking led turnover (notably Sampath Bank) and activity was concentrated in capital goods, food & beverage and energy names.

Sri Lanka gazetted an immediate ban on importing goods wholly or partly produced with forced labour on July 10, 2026, to avert a threatened 12.5% U.S. tariff under Section 301. Exporters—especially apparel, textiles and agricultural producers—now face stricter certification, higher compliance costs and potential supply-chain delays.