News & market updates

A Sri Lanka–USA Business Council webinar analysed US tariff changes and their impact on Sri Lankan exporters, noting US tariffs are effectively at 20% parity with peers and that two-thirds of Sri Lanka's US exports are apparel. Panelists urged strict customs compliance, tariff simplification, FTAs and sustainability while warning of gradual rupee depreciation risk.

SLEIS 2025 will be held 2–3 December at the Shangri-La Colombo and includes a Day One session, 'The New Age of Diversified Exports', focused on broadening Sri Lanka's export base into cinnamon, seafood, electronics, minerals and advanced manufacturing. Sponsors and partners include Hayleys (logistics), Sunshine Holdings and Dialog.

Colombo stock market opened the week higher as the ASPI rose 0.36% (77.31 pts) to 21,676.20, led by plantation counters and conglomerates; turnover was about Rs.4.2bn and foreigners were net sellers of Rs.15.6m.

The Sri Lanka Economic & Investment Summit 2025 (2–3 Dec, Shangri‑La Colombo) will feature a session on export diversification, highlighting opportunities in cinnamon, seafood, electronics, minerals and advanced manufacturing and discussing branding, standards, logistics and trade partnerships.

The Sri Lanka Economic and Investment Summit 2025 will focus on broadening the country's export base and diversification, highlighting opportunities in cinnamon, seafood, electronics, minerals and advanced manufacturing and measures on branding, standards, logistics and trade partnerships.

Sri Lanka Trade Minister Wasantha Samarasinghe met Indian ministers and officials to strengthen cooperation on food security, cooperative development and food processing partnerships. Discussions focused on exports and marketing of agricultural products, capacity building, supply chain management and technology exchanges.

Hayleys Fibre commissioned a Rs. 600 million, 48-acre integrated coir processing facility in Nikaweratiya that will meet about one-third of its raw material needs and boost export-oriented coir production and rural employment.

Colombo Rubber Traders' Association warns that abolishing the SVAT from 1 Oct without a working digital refund system will cause industry-wide financial distress, threatening smallholders, SMEs, exporters and foreign exchange inflows. CRTA says upfront VAT payments and uncertain 45-day refunds will squeeze liquidity and disrupt local value chains.

Speakers at a webinar said Sri Lanka lacks local GPU clusters, forcing AI startups to rely on public hyperscalers and raising costs; they urged investment in GPU infrastructure, data governance and AI up-skilling, noting opportunities in banking, GovTech, agriculture and education.

Eastern Merchants PLC appointed Ruwanthi de Silva as an Executive Director. She has nearly 20 years' cross-industry HR and strategy experience and currently serves as HR & Compliance Director at Microcells Ltd., leading HR, compliance and automation initiatives.

Colombo stocks rose on Monday with the ASPI up 0.36% (77.31 points) as retail buying lifted plantation and some manufacturing shares; top contributors included Carson Cumberbatch, Melstacorp, John Keells, Namunukula and Watawala.

Eswaran Brothers launched a gender inclusion programme (October 2024) with Value for Women and support from FMO to elevate women into leadership across the tea industry, rolling out a Gender Action Plan, leadership training, anti-harassment policies and family-friendly measures.

President Anura Kumara Disanayake led Sri Lanka Day at Expo 2025 Osaka, where the Sri Lanka Pavilion showcased culture, Ceylon tea, spices, gems and tourism to thousands of visitors. Japan's expo minister joined the visit as the event aimed to boost tourism and export promotion.

Lara De Zoysa has launched Ceylon Tea Market in the UK, a multi-vendor platform that launches with 12 heritage and artisanal Ceylon tea brands. The platform combines e-commerce, tea holidays, tea education and a CSR trust to promote Pure Ceylon Tea and support tea-growing communities.

Sri Lanka will deliver tea fertilizer subsidies via a QR-code system from Oct 1, offering Rs 4,000 off a 50 kg bundle and Rs 2,000 off a 25 kg bundle, with Rs 2,000 million allocated for 2025. The subsidy targets smallholders (75% of production) to help lift annual tea output to 400m kg by 2030.

Colombo Rubber Traders' Association warned removing the SVAT scheme from Oct 1 will force exporters and manufacturers to pay VAT upfront, causing severe liquidity shortages and threatening smallholders and SMEs; it urged deferral until a proven digital refund (e-invoicing) system is operational, noting the IRD's 45-day refund pledge.

The ASPI closed at 21,599, rising 0.36% (78 points) on the day and finishing the week up 2.4% (S&P SL20 up 1.9% for the week). Turnover was Rs.6.02bn yesterday (week avg daily Rs.7.11bn); capital goods led turnover and top contributors included Hemas, Melstacorp, Commercial Bank, CIC, Gran, Sunshine, Kelani Cables and John Keells.

Deputy Minister Chathuranga Abeysinghe told an Osaka business forum that Sri Lanka is officially out of bankruptcy and is seeking Japanese investment across apparel, agriculture, ICT, renewables and tourism to support an export-driven recovery.

The Global Dialogue Forum held an international conclave in Colombo on 20 September to explore how AI can power renewable energy, enhance agricultural productivity and food security, and strengthen cybersecurity. The full-day event gathered policymakers, academics and industry leaders from the region and beyond.

The Sri Lanka Banks' Association submitted 2026 budget proposals to Deputy Minister Anil Fernando urging targeted credit guarantees, accelerated tax deductibility for impairments, SME digitisation, a national cloud and incentives for green lending and tax-free green/PPP bonds. Proposals also cover VAT/TIN rules, fintech incentives and funding for tea replanting.

Export associations warn that abolishing the SVAT regime on 1 October could withhold about $80m (≈8% of export earnings) monthly in VAT refunds, creating a severe cash-flow squeeze if refunds exceed the legal 45-day window (and may stretch beyond 100 days). They urge a phased rollout and fully tested e-invoicing/refund systems before removal.

The Sri Lanka Banks' Association submitted a comprehensive package of proposals to the 2026 Budget seeking banking-sector reforms — including tax relief, targeted credit guarantees, SME formalisation, digital infrastructure, and green finance measures — to support economic recovery.

Hayleys Fibre commissioned a Rs. 600 million, 48-acre integrated coir processing facility in Kadigawa to supply nearly one-third of its raw material needs and boost exports and rural employment; the site integrates husk processing, fibre extraction, coco peat milling, drying and storage.

Colombo ASPI rose 0.36% to 21,598.99, led by gains in Dialog Axiata, Hemas Holdings, Ceylon Grain Elevators, Sunshine Holdings and Kelani Cables, with market turnover at 6 billion rupees.

Sri Lanka completed its first-ever spice promotion mission to China, with SAPPTA signing an MOU with China's Yu Lin Spice Chamber to promote Ceylon cinnamon, pepper, cloves and other spices and expand export market access.

Agriculture minister said the private sector will support boosting domestic milk production and the National Veterinary Development Council will fund expanded breeding and feed activities. He noted domestic corn production is 3 lakh tonnes versus a 6 lakh tonne need (about 40% of requirement).

The Sri Lanka Export Development Board organised a Sri Lanka Pavilion at Foodex Saudi 2025 (21–24 Sep) with nine Sri Lankan food and beverage companies participating. Participants showcased processed foods, oats, coconut products, spices, fish and poultry and held B2B meetings with major Middle East buyers to promote exports.

Exporters have urged the Sri Lankan government to delay the planned October 1 removal of the SVAT voucher-based refund system until a fully functional e-invoicing and digital refund mechanism is in place, warning the change could lock Rs25–50bn monthly. They say paying VAT upfront would tie up working capital and hurt tea, apparel and small-holder agriculture exporters.

SLAMERP warned that abolishing the SVAT scheme from 1 Oct will create a cash-flow crisis across Sri Lanka's rubber value chain, risking smallholder livelihoods, SME closures, reduced exports and a fall in foreign-exchange inflows if VAT refunds are delayed.