News & market updates

SAARC CCI President Chandi Raj Dhakal met Yunnan Governor Wang Yubo in Kunming to push for expanded trade, investment and connectivity between South Asia and Yunnan, highlighting opportunities in infrastructure, tourism, logistics, digital industries, renewable energy, agriculture and manufacturing.

Plantations Minister Samantha Vidyarathna urged advance planning to mitigate potential El Niño impacts on the plantation industry and communities to protect national production targets. Officials recommended soil and water conservation, micro‑irrigation, alternative livestock practices, field officer capacity building and improved weather information.

Disaster Management Centre warns Sri Lanka may need to purify and distribute seawater if a strong El Niño triggers prolonged drought, risking reservoirs, agriculture and hydropower output. Authorities are reviewing reservoir management, cultivation schedules and electricity generation contingency plans.

President Anura Kumara Dissanayake directed agencies to prepare contingency plans for an anticipated El Niño that could mirror 2016-17, citing risks to food security, water resources and electricity generation. Officials highlighted reservoir management and an earlier start to the 2026 Yala season as key measures.

Sri Lanka's CSE closed up with the ASPI rising 1.75% to 21,642.95 after US President Trump said he cancelled planned strikes on Iran. Banks led turnover and several banks and blue-chips rose, while Dialog Axiata passed AGM resolutions including a final dividend and its shares closed up.

Deloitte Sri Lanka held a 27 May 2026 client session urging climate disclosure as a driver of business resilience and access to capital. Speakers covered operationalising SLFRS S1/S2, climate risk and scenario analysis, decarbonisation, assurance-ready data and sustainable finance.

Adamjee Lukmanjee Group hosted the "Legacy of Trust - Customer Forum 2026" on 23 May at Cinnamon Life, Colombo to recognise longstanding and top-performing customers. The 160-year group highlighted its supply of animal feed ingredients, Saviya cement and N-Joy coconut oil to agriculture, livestock and construction sectors.

Prof. Devaka Weerakoon says Sri Lanka's oil palm area is relatively small (~11,000 ha) and mainly converted from rubber rather than forest. He argues evidence shows oil palm is not uniquely more harmful than other plantations and calls for evidence-based, landscape-level management rather than a blanket ban.

Sri Lanka will launch the National Export Development Plan 2026–2030 in Colombo on 16 June 2026, targeting USD 36 billion in export revenues by 2030. The plan sets two pillars (Horizontals and Verticals) and names eight priority sectors including Digital Products, Electrical & Electronic Components, Auto Components, Rubber, Minerals, Marine, Spices, and Processed Food & Beverages.

The CBSL cut the mandatory conversion period for export proceeds from 90 days to 30 days, and the rupee strengthened to about Rs. 332.25/333.00 from Rs. 337.00/337.75. The move is intended to accelerate repatriation of export earnings and boost foreign-exchange liquidity to stabilise the market.

ASPI fell 0.4% (85.70 pts) to 21,461.47 as selling pressure reversed early gains; turnover was below Rs.1.7bn and foreign investors were net buyers of Rs.55.9m. Major negative contributors were C T Holdings, Melstacorp, Ambeon, Access Engineering and Central Finance, while John Keells, Chevron Lubricants and Commercial Bank were top turnover names.

The Central Bank of Sri Lanka now requires exporters to convert any residual foreign-currency export proceeds into rupees by the 10th day of the month following receipt under amended Repatriation of Export Proceeds rules. The change replaces the 90-day window and is intended to support FX liquidity amid recent rupee pressure.

Frontier Research says Sri Lanka is better placed to absorb a potential El Niño due to stronger fiscal and external buffers, but warns of short-term pains. It cites an 80% chance of El Niño in June–August 2026 (over 90% through November) and warns disruptions to agriculture, energy and supply chains that could raise inflation.

CBSL cut the foreign-currency conversion window for merchandise exporters from three months to one, prompting a stronger rupee (USD buying rate fell from Rs.332.38 to Rs.324.66; selling from Rs.342.08 to Rs.335.39).

Sri Lanka's central bank cut the mandatory conversion period for exporters' foreign-currency receipts from 90 days to 30 days, requiring conversion by the 10th of the following month. The rule is intended to generate predictable monthly dollar inflows to banks to ease FX shortages and help stabilise the rupee, while tightening exporters' working-capital flexibility.

Sri Lanka's Central Bank ordered exporters to convert export dollar proceeds within one month (down from three) effective immediately to curb rupee depreciation. The move follows a $211m defence of the currency in May and a 100bp overnight policy rate hike on May 26.

CBSL's new 'Repatriation of Export Proceeds into Sri Lanka Rules No.2 of 2026' requires exporters to convert all residual foreign exchange proceeds on or before the 10th day of the month following receipt, shortening the previous three-month window; the rule takes effect after Parliamentary approval and preserves limited authorized uses and a 10% cap for investment in government FX debt.

Bogawantalawa Tea Estates PLC ran a World Environment Week 2026 campaign (June 1–7), planting approximately 15,000 native and fruit-bearing trees across 43 company-managed locations to bolster biodiversity, watershed restoration and carbon sequestration.

The Sri Lanka–Thailand Business Council marks its 25th anniversary in 2026, holding a silver-jubilee event on 19 June at The Kingsbury Hotel with a 25-member Board of Trade Thailand delegation attending. The council highlights continued efforts to boost trade, investment and cooperation across tourism, logistics, healthcare, renewable energy and IT.

Colombo Stock Exchange trended up intraday, with the ASPI +0.26% (55.89 pts) to 21,603.06 and the S&P SL20 +0.16% (9.59 pts) to 6,010.27; market turnover was LKR 511.7m, led by capital goods (LKR 32.3m). Top positive contributors included Melstacorp, Hayleys, John Keells and Lanka IOC; Commercial Bank, Malwatte Valley Plantations and Ceylon Cold Stores were top negatives.

Colombo market rebounded as the ASPI rose 0.67% to 21,547.17 with net foreign inflows of Rs. 22.6 million. Gains were led by selected blue-chip counters and heavy turnover in capital goods and food & beverage names, with notable moves in DIAL, BREW, CCS, ABAN and JKH.

The IRD has begun Phase II of Sri Lanka's Digital Invoicing System, expanding the platform to VAT-registered businesses after Phase I onboarded more than 340 companies; technical documentation has been shared with 27 export-oriented firms and 170 manufacturers, and Phase III POS integration is planned by year-end.

Peterson Solutions Sri Lanka opened a new corporate office at Orion City, Colombo on 5 June 2026. The move reflects local growth—the consultancy, part of Peterson and Control Union Group, says it now serves 170+ Sri Lankan clients and is expanding services in sustainability, crop consultancy and digital solutions.

The SAPLING policy dialogue to advance South Asia's food processing industry opened in Ahmedabad with ~200 participants and 16 Sri Lankan delegates, including representatives of John Keells Holdings; the event spotlights innovations such as smart cold chains, digital traceability and sustainable packaging.

HNB PLC has signed an MoU with Hayleys Agriculture Holdings to expand leasing solutions for Kubota and Agrotech agricultural machinery across Sri Lanka. The partnership will finance tractors, combine harvesters, power tillers and rice milling machines to boost farm mechanisation.

Deputy Finance Minister Anil Jayantha said Sri Lanka's rupee is returning to a normal state through market forces, with the Central Bank's buying rate between 320–330 after a near four-year low of 354; he cited export, tourism and remittance inflows and interventions stabilising fuel-driven fluctuations.

The Ceylon Chamber warned that a proposed 12.5% US labour-related tariff on Sri Lankan exports could hurt competitiveness and urged urgent high-level engagement; apparel and tea exports fell 7% and 6% respectively in the first four months of 2026.

Pink Eagle Holdings is consolidating as a diversified Sri Lankan conglomerate, expanding globally across tea exports, logistics, food manufacturing, hospitality and digital retail. Milestones include Continental Tea/ADRA Ceylon's 10th anniversary, the Avanti freight app launch, and new food-manufacturing and retail initiatives.

Ceylon Chamber warns the US has proposed a 12.5% labour-related tariff on Sri Lankan exports, which could weaken export competitiveness; apparel and tea exports were down 7% and 6% respectively in the first four months of 2026.

The Ceylon Chamber will host the Sri Lanka Climate Summit 2026 on 9 June in Colombo to focus on business climate readiness, investment readiness and unlocking climate finance. Participants include the Environment Minister, ADB, UN agencies, Commercial Bank CEO and Aitken Spence sustainability leadership.