News & market updates

The National Chamber will host an exclusive bilateral trade and investment session with Vietnam’s Ambassador Trinh Thi Tam on 30 July (2:30–4:30pm) in Colombo to explore Vietnam’s trade policies and investment opportunities. Major Sri Lankan exports to Vietnam cited include animal feed, apparel, tea and rubber, while imports include apparel, machinery, textiles and iron/steel.

EDB’s National Organic Control Unit held the third phase of its 2025 national awareness program at Riveria Resort, Batticaloa on 8 July, drawing over 75 farmers, entrepreneurs and stakeholders for sessions on organic farming, SLS 1324:2018 certification, processing, export trends and digital marketing.

Sri Lanka's tea exports reached 126.8 Mnkg in H1 2025, up 6% YoY, generating about $743m — the highest first-half earnings since 2014; June exports rose 11% YoY to 23 Mnkg, with value-added products lifting the average FOB to $5.87/kg.

Asia Siyaka reports June tea output fell 6.3% YoY to 21.69 Mnkg, but cumulative Jan–Jun production rose 6.1% YoY to 135.74 Mnkg, driven by gains in Low, High and Medium Growns and early July signs of recovery.

Thailand's ambassador expressed hope for full implementation of the Sri Lanka–Thailand FTA to boost trade and mutual benefits, with planned cooperation and investment promotion in tourism, agriculture and industry.

National Chamber will host a July 30 forum with Vietnam's ambassador to promote trade diversification and bilateral investment, highlighting opportunities for Sri Lankan exporters (tea, apparel, rubber, fish, gloves, textiles) and imports from Vietnam.

President Trump announced 15% tariffs for Japan and 19% for Indonesia and the Philippines; Sri Lanka is continuing talks to try to reduce its current 30% tariff.

Colombo bourse extended gains as the ASPI closed at 19,092 (up ~47 points) on turnover of Rs.5.9bn; banking led activity (23%) and top contributors included DFCC, NDB, AEL, HNB and ASHO, while foreigners were net sellers of Rs.38.2m.

Ceylon Chamber has opened registrations for the Sri Lanka Economic & Investment Summit 2025, to be held 2–3 Dec at the Shangri-La Colombo. The two-day forum will focus on investment, fiscal and regulatory reform, and sector opportunities including tourism, agribusiness, manufacturing, renewables, logistics, finance and technology.

EDB's National Organic Control Unit held the third phase of its 2025 national awareness programme on organic agriculture at Riveria Resort, Batticaloa on 8 July, drawing over 75 participants. Sessions covered organic farming practices, SLS 1324:2018 certification, digital marketing and export opportunities.

Sri Lanka will hold another round of tariff talks this week aiming to reduce a 30% US tariff ahead of an Aug 1 deadline. The discussions affect exporters such as apparel, rubber and tea and follow approvals to import US wheat and other agricultural commodities.

Sri Lanka's African Swine Fever outbreak has killed about 67,000 pigs across roughly 2,500 farms and is now reportedly about 95% under control, officials said. The government has imposed transport bans, stepped up farm inspections, plans mandatory farm registration and veterinary certification, and set up a task force to rebuild the industry.

Tea Traders' Association urged the government to strictly enforce laws against factories producing low-quality tea that use lower-grade leaves and other cost-cutting practices, warning this undermines Ceylon tea's reputation. Officials also discussed boosting productivity, market development and creating a formal tea data system.

Average coconut auction prices rose 9.4% to 126,537.80 rupees per 1,000 nuts at the July 17 weekly auction; nuts offered and sold roughly halved week-on-week. Local wholesale, farmgate, copra and coconut oil price ranges were reported, and China and Maldives launched a coconut pest-control initiative.

Sri Lanka will continue talks with the US Trade Representative to seek further reductions of a proposed 30% tariff on Sri Lankan goods. The move, after an initial 44% proposal was lowered to 30%, aims to secure concessions to protect export competitiveness and bilateral trade.

Secretary to the President Dr. Nandika Sanath Kumanayake chaired a high-level meeting to review tea industry challenges and prioritize improving quality, productivity, market diversification and smallholder replanting and capacity building. The Plantation Ministry will propose a formal data system and officials were directed to provide solutions; traders urged stricter enforcement against quality-compromising factories.

CoPF approved a Rs.3 per kg licence fee on tea exports to be credited to the Sri Lanka Tea Board's capital fund for replantation, revival of abandoned estates and factory upgrades. The committee also cleared Bills of Exchange amendments to allow criminal penalties for fraudulent cheques and approved a pilot AI platform to modernise Hansard and committee minutes.

A delegation of 42 Sri Lankan SMEs showcased at the China International SME Fair in Guangzhou, securing CNY300,000 in spot sales and CNY150,000 in confirmed export orders for cinnamon, coir and jewellery. Participants gained product/technology/export-readiness insights but flagged GACC registration challenges to fulfil orders.

Demodera Estate in Uva spans 1,109.25 hectares with nearly half under tea and produces over 1.2 million kg of made tea annually; since 2021 it has been managed by Browns Plantations PLC. The estate uses hydro (750 units/day), renewables and sustainable practices, won 2024 factory awards and supports local employment and tourism.

A delegation of 42 Sri Lankan SMEs at the CISMEF in Guangzhou secured spot sales of CN¥300,000 and confirmed export orders of CN¥150,000 for cinnamon, coir products and jewelry. Participants gained insights on technology, product development and export readiness but cited GACC registration as a hurdle, with the EDB pledging support.

The President’s Secretary met with tea industry stakeholders to address quality, productivity, replanting and new export market opportunities. Officials also discussed capacity building for smallholders, a formal data system and stricter enforcement against low-quality factories.

The Committee on Public Finance approved regulations under the Tea (Tax and control of export) Act to charge a Rs. 3 per kg licence fee to be credited to the Sri Lanka Tea Board capital fund for tea industry development. Officials said the funds will support replanting, reviving abandoned estates and improving factory efficiency; the committee also discussed Bills of Exchange amendments and piloted a secure AI Hansard system.

The US offered a list of 1,161 Sri Lankan product lines (including apparel and 42 agricultural items) for potential duty-free access, saying it could cover about 80% of exports as talks continue in Washington. Details remain confidential and exporters have been asked to review HS codes ahead of a possible 30% tariff effective 1 Aug.

The Export Development Board's Export Agriculture Division held a workshop in Kandy on developing ayurvedic and herbal cosmetic products for export, attended by about 100 stakeholders and covering manufacturing, packaging, regulatory compliance and digital marketing; two more programmes are planned in 2025.

Sri Lanka is negotiating a US offer to grant duty-free access on about 70–80% of a 1,161-item list (over 800 goods), including 42 agricultural items and possibly apparel, with details withheld during talks. The US has also proposed a 30% tariff on Sri Lankan exports from Aug 1 and Sri Lanka imposed an extra 10% export tax in April.

CCCI warns the US' 30% tariff on Sri Lankan coconut-based products from 1 August threatens the $857m coconut export sector and over 800,000 livelihoods. The US buys ~20% (~$160m) of exports; desiccated coconut, oils, coir and activated carbon are at risk and the CCCI urges urgent government action and trade talks.

FCCISL and the Omani ambassador agreed to deepen economic cooperation with plans for B2B meetings, a proposed MoU and Omani participation in CACCI Expo 2025 to boost trade, tourism, ICT, agro-processing and manufacturing links. The ambassador highlighted Oman’s investor-friendly taxes (customs 5%, VAT 15%, corporate tax 15%) and expanding infrastructure.

Sri Lankan coconut exporters warned a 30% US tariff would hit $160m of exports to the US—about 20% of annual $857m coconut exports—potentially damaging competitiveness, threatening jobs and farmgate prices. The Ceylon Chamber of Coconut Industry urged urgent government engagement with the US and targeted support for exporters.

The US will impose a 30% import tariff on Sri Lankan coconut-based products from August 1, 2025, threatening an export sector that generates over USD 857 million annually (about USD 160m in US sales). The Ceylon Chamber of Coconut Industry warns the tariff could price Sri Lanka out of the US market and endanger over 800,000 livelihoods and 150,000 direct manufacturing jobs.

STEMedical and the Sri Lanka Institute of Biotechnology (SLIBTEC) signed an MoU to establish an internationally accredited laboratory with a $15 million investment. The lab will act as a central accreditation facility for testing in health, agriculture, cosmetics and export-import goods to support quality assurance and export growth.