News & market updates

The CACCI 39th Annual Conference opened in Colombo, drawing delegates from 28 member nations with sector sessions on SMEs, ICT, tourism and renewable energy. Speakers highlighted regional cooperation and called for a pragmatic trade policy to better connect Sri Lankan businesses to wider markets.

Dividend · Rs 0.30 · XD Nov 19, 2025

Second Interim dividend of LKR 0.3/share; XD 2025-11-19; record 2025-11-19; payable 2025-12-09; FY 2025/2026

ADB approved a $100 million financing package to strengthen Sri Lanka’s macroeconomic stability by improving public expenditure management, boosting revenue mobilization, developing a PPP legal framework, enhancing SOE transparency and mobilizing climate finance.

Government will settle Treasury guarantees and letters of comfort for defaulted SOE loans during 2026, covering about 554 billion rupees of state-bank loans guaranteed to SOEs. The bulk of guarantees went to the Road Development Authority, SriLankan Airlines, Ceylon Electricity Board and Ceylon Petroleum Corporation; the budget gave no payment breakdown or method.

ADB approved $100 million to strengthen Sri Lanka's macroeconomic resilience by improving public expenditure management, enhancing revenue mobilization, supporting a PPP legal framework, strengthening SOE governance, and mobilizing climate finance.

Ceylon Chamber says Budget 2026 reinforces policy predictability and fiscal consolidation but urges faster implementation of reforms to convert fiscal gains into growth. It welcomes 18 of its proposals (e.g., Trade Single Window, PPP framework, digital ID, 5G) and calls for stronger tax administration, SOE/PPP legislation and targeted public investment.

Hayleys Fentons launched 'The Green Blueprint – ESG Roadmap 2030' on 29 September, targeting 70% clean energy use by 2030 and commitments to zero waste to landfill, biodiversity initiatives and stronger ESG governance; the programme is backed by Hayleys PLC.

The Joint Apparel Association Forum welcomed the 2026 Budget's export-led focus, investment facilitation and digitalisation measures but urged clarity and consistent implementation to translate commitments into results. JAAF highlighted priorities including RAMIS 3.0, e-invoicing, stable energy costs, renewable adoption and improved logistics.

Ceylon Chamber says Budget 2026 reinforces policy stability and urges faster implementation of reforms to meet growth targets. It notes 18 Chamber proposals were adopted — including a Trade National Single Window, PPP framework, digital ID/5G and BIA expansion — and calls for stronger tax administration and fast-tracked SOE/PPP reforms.

President Anura Kumara Disanayake presented the 2026 Budget offering measures to attract FDI — including a residence visa for qualifying foreign investors, amendments to investment and port city laws, and a PPP/Investment Protection framework — aiming to boost growth to 7%.

The 2026 Budget allocates Rs.35.6 billion to advance digitisation, including a Rs.1.5bn startup grant, Rs.750m for an AI data centre and an initial Rs.500m to attract data-centre investment. It also proposes five-year tax waivers for new communication towers, virtual SEZs, streamlined approvals, a digital ID rollout and QR/payment fee waivers under Rs.5,000.

JAAF welcomed the 2026 Budget’s emphasis on export-led growth, digitalisation, trade facilitation and enhanced capital allowances, but urged clarity, consistent implementation and policy continuity to ensure these measures translate into tangible benefits for the apparel export sector.

President Anura Kumara Dissanayake presented the 2026 Budget, unveiling investor-friendly reforms including a residence visa for qualifying foreign investors, amendments to FDI laws and a planned Investment Protection Act to boost FDI. The Budget targets 7% medium-term growth and highlights opportunities in exports, IT, tourism, ports, energy and agriculture.

Colombo bourse rose on Budget optimism as ASPI gained 0.98% (225 pts) and S&P SL20 rose 1.13%; banking led activity (23% of turnover) and key positive contributors included SFCL, COMB, SAMP, HNB and VONE, with DFCC, LAUGFS and Bogala among high-turnover winners.

Sri Lanka will offer subsidized land, electricity, green energy and financial concessions to attract AI data centre investors, and has earmarked 500 million rupees for this in 2026.

Resus Energy (HPWR.N0000) will seek shareholder approval to split each ordinary share into five, increasing shares from 86,184,827 to 430,924,135; stated capital remains Rs 967,483,260 and the subdivision is pending regulatory approval. The stock was trading up Rs 4.80 at Rs 50.80.

Share split · 1:5 · XD Jan 8, 2026

Split issue

Government aims to enact a Public–Private Partnership (PPP) Act by January 2026, with the final draft with the Attorney General and Cabinet approval expected shortly. A Screening and Scoring Tool for PPP projects is expected by end-Q1 2026 and an Investment Protection Act is being drafted aiming for Q1 enactment.

Sri Lanka and Bangladesh agreed to deepen cooperation on maritime connectivity, trade and green tourism, including a proposal for direct port connectivity between Colombo and Chattogram to cut shipping costs. They also advanced talks on investment in infrastructure, EPZs/SEZs, ICT/tech corridor, pharma registration and renewable energy collaboration.

Chinese President Xi Jinping set out a three‑point Asia‑Pacific vision at APEC prioritizing digital/smart development, green low‑carbon transition, and inclusive growth to boost innovation, climate resilience and cooperation across the region.

Cabinet approved securing a $30 million IFC loan to finance the Secure, Bearable and Sustainable Energy Project, with funding to be channelled to the Ceylon Electricity Board or its affiliates to support power system reliability, affordability and sustainability.

Ceylon Petroleum Corporation's net profit fell 17.9% to Rs. 17.0 billion in 1H2025 as turnover dropped 19.3% to Rs. 439.5 billion, driven by lower global oil prices and a stronger rupee. CPC also cut dues to Iran to $130.96m by end-June via ongoing tea-for-oil settlements.

President Anura Kumara Dissanayake will present the 2026 Budget (second reading of the Appropriation Bill) to Parliament tomorrow (7 Nov). Debates on the second reading run from 8 Nov with votes and committee stages scheduled through 5 Dec, including the second-reading vote on 14 Nov and the third-reading vote on 5 Dec.

Sri Lanka will unveil its 2026 budget on Friday, with the government balancing IMF-driven fiscal discipline against delivering relief as inflation is projected to return to around 5%. The plan must also address high debt, potential tax changes, pressure for capital (construction) spending and SOE reforms such as at CEB and SriLankan Airlines.

Thirteen labour unions submitted 18 policy-focused proposals for the 2026 Budget calling for labour-law reforms, forensic audits of SOEs (including Sri Lanka Telecom), retention of EPF management at the Central Bank, and a Rs.1 levy-funded social security scheme for gig workers.

99x's Yantra Labs developed embedded IoT solutions including edge-based computer-vision fire detection and a Solar Shading Analyser that models shading to optimise solar panel layouts, aiming to recover 10–30% energy loss from shading.

Sri Lanka is developing 67 public–private partnership projects across sectors including power, ports, urban development and transport. A PPP law is with the legal draftsman and will be sent to parliament after Attorney General approval.

Tata Power Renewable Energy MD & CEO Sanjay Banga told a Colombo forum that well-designed public–private partnerships have transformed India's power sector and could guide Sri Lanka as it finalises its PPP framework. He cited regulated transmission returns of about 13% and reforms in Odisha and Delhi as examples where PPP contracts and government support improved efficiency and financial performance.

Voyage Sri Lanka 2025, organised by the Sri Lanka Export Development Board, concluded on 16 Oct at The Kingsbury with over 250 delegates, showcasing blue-economy opportunities in shipbuilding, offshore energy, boat building and nautical tourism and involving sponsors including Hayleys, Seylan Bank and Lanka IOC.

Cabinet approved only three wind projects on Mannar island and said those three, including Hayleys Fentons' 50 MW project (planned Dec 2026), may proceed; no further wind projects will be implemented without local consent.