News & market updates

Sri Lanka's Construction PMI (Total Activity Index) rose to 60 in June from 59.1 in May, indicating expansion; the Employment Index increased to 61.4. Firms cited ongoing project execution supporting activity but flagged shortages of skilled workers and key raw materials (notably bitumen) and supply disruptions as constraints.

Colombo stocks closed flat with the ASPI up 0.01% at 21,132.12 and market turnover of Rs 1.41 billion; banks led turnover at Rs 411.6 million and Food, Beverage & Tobacco followed with Rs 308.7 million. Notable movers included Melstacorp, HNB, Pan Asia, Central Finance and Aitken Spence; Lanka Realty Investments disclosed an Rs 800m related-party loan settlement.

CHEC Port City Colombo is pitching its 2.7 sq km SEZ to attract Indian investors, allowing Indian firms to register as offshore companies and transact in Indian rupees; the plan includes four dedicated hospitality plots, a two-km beach and a 90-hectare lagoon.

Gateway College has acquired the 3.2-acre Regent Country Club site in Malabe from Prime Lands to develop a new state‑of‑the‑art international school; the property already includes a banquet hall, offices, pool and other facilities and will expand Gateway's school network.

Colombo bourse ended lower: ASPI fell 0.38% to 21,148.71 and S&P SL20 dropped 0.26% to 5,946.03. Market turnover was nearly Rs.1.1bn, foreign investors were net sellers of Rs.710,860, with SPEN, CINS, COMB, ACL and RICH among the decliners.

Colombo Stock Exchange closed lower, with the ASPI down 0.38% to 21,148.71 and market turnover of Rs.1.094 billion; capital goods led turnover at Rs.389 million. Bogala Graphite reported an indirect change of control (shares down 2.01%) and Lankem Ceylon disclosed a Rs.500m corporate guarantee for its subsidiary (shares up 5.23%).

Odel PLC has revised its Odel Mall plan, prioritising completion of Zone 1 within 18-24 months and deferring Zone 2. Construction has recommenced, significant contracts and capital commitments remain, and the company is pursuing a reduced-scope financing plan plus loan restructuring with a HNB-led banking consortium.

The Shoppes at City of Dreams Sri Lanka announced Scope Cinemas, a five‑screen multiplex with two VIP halls, will open on Level 10 before end‑2026 as a flagship anchor for the destination, expanding its retail, dining and entertainment offerings.

The Cabinet approved land allocation to 23 investors across 13 regional industrial estates on 35-year leases for projects totaling over Rs. 2.8 billion, expected to create 870 direct jobs. The moves are part of the Industry and Entrepreneurship Development Ministry's regional industrial estate development programme to build infrastructure and promote balanced industrialisation.

Cabinet approved commencing the procurement process to award about Rs. 15 billion of contracts for Phase I of the Ruwanpura Expressway, with contracts expected to be awarded in 2026 using approved 2026 budget allocations. Phase I covers Kahathuduwa to Ingiriya and includes a Kahathuduwa System Interchange linking to the Southern Expressway.

Cabinet approved awarding about Rs15 billion in local funding to construct Phase 1 of the Ruwanpura Expressway in 2026; the RDA will complete procurement and select a contractor to build the Kahathuduwa-Ingiriya stretch, including a system interchange at Kahathuduwa linking to the Southern Expressway.

Cabinet approved creation of a 100% Treasury Limited (Public) Company under the Ministry of Transport to manage, operate and develop Sri Lanka's multimodal transport hubs; two hubs are operational (Makumbura, Kadawatha) and two (Anuradhapura South, Kandy) are under construction.

Colombo Stock Exchange closed higher, the ASPI rose 0.20% (41.92 pts) to 21,229.14 and turnover was Rs 2.02bn with retail leading at Rs 1.04bn. SANASA Life said escrow proceeds were released and invested in government securities, and Odel restarted construction on Zone 1 of its mall with completion expected in 1.5-2 years.

The Surveyors' Institute of Sri Lanka will celebrate its centennial on 2 August 2026, marking 100 years of service to surveying, mapping and land administration. The institute says it will continue promoting digitalisation and geospatial technologies to improve land administration and support national development.

The Court of Appeal dismissed two writ applications against Pentara Residencies, the Home Lands Group apartment project in Thummulla, Colombo 5, finding the UDA approvals complied with the Development Plan and rejecting the petitioners' challenges.

Odiliya Homes & Residencies has appointed Sri Lankan cricketer Lasith Malinga as its official Brand Ambassador to boost its local and international brand presence, promote its Icon hotel portfolio and support efforts to attract foreign investment into Sri Lanka's premium real estate and hospitality sectors.

Sri Lanka and India held talks to resolve implementation challenges in Indian-funded development projects, including review of projects financed under a US$450 million loan and grant for disaster recovery. Participants discussed renewing agreements and creating a dedicated unit in the Presidential Secretariat to monitor project progress.

Alumex PLC has deployed four AI and IoT-enabled innovations — including a new AI/IoT extrusion line, Golden Batch extrusion digitisation, a scrap optimisation tool, an AI knowledge hub and IoT energy monitoring — to boost export competitiveness, efficiency and sustainability.

A high-level delegation from Russia's NOSTROY visited Sri Lanka to explore investment and collaboration in infrastructure and urban development projects and held talks on expanding employment opportunities for Sri Lankan construction professionals.

Arcasia Investment & Trading Ltd. and ATX Partners launched a voluntary offer to buy all issued shares of Industrial Asphalts at 40 cents per share, securing binding undertakings for 50.16% of the company. The offer will convert to a mandatory offer once those acceptances are tendered; the stock last traded at 60 cents.

Colombo Stock Exchange ASPI rose 0.57% (up 120.83 pts) to 21,293.57 at midday, with market turnover LKR 264 million and capital goods leading turnover at LKR 80.9 million. Ceylon Cold Stores reported June-quarter profit of LKR 1.063 billion, down 3% year-on-year.

A high-level delegation from Russia's National Association of Builders (NOSTROY) visited Sri Lanka from 22–25 July 2026 to explore investment and collaboration in infrastructure, urban development and hotel/tourism projects and to discuss skilled labour mobility for construction professionals.

President Anura Kumara Dissanayake instructed officials to formulate a program to allocate underutilised State land, with project support, to Sri Lankan migrant workers returning from overseas. He also reviewed 2026 plantation projects, urged completion of 10,000 Malayagam houses, ordered land-agreement reviews and noted improved profitability at six State plantation entities.

India's assistance to Sri Lanka has exceeded $7.5 billion, including more than $850 million in grants. The aid has supported projects across all 25 districts in infrastructure, housing, health, education, agriculture, renewable energy, railways and industrial development.

SEC, CSE and CA Sri Lanka signed an MoU to implement XBRL-based reporting for companies listed on the Colombo Stock Exchange, targeting rollout in the latter part of 2026. The CSE has procured and customised the XBRL platform and is completing UAT while a joint committee finalises the taxonomy and implementation framework.

Overseas Realty (OSEA.N0000) reported Group PBT of Rs. 4,767 million and Group revenue of Rs. 6,775 million for the six months to 30 June 2026. Fair value gains were Rs. 1,091m (down from Rs. 2,331m), occupancy and rental improvements drove stronger recurring revenue, NAV per share Rs.54.67 and EPS Rs.3.60.