News & market updates

KPMG Sri Lanka Academy will host a webinar on 5 May to explain recent tax reforms — including the Social Security Contribution Levy Act, the VAT (Amendment) Bill, expanded withholding taxes and higher capital gains tax — and their compliance implications for businesses and individuals.

AHC Group signed an MoU with the Asia Africa Chamber of Commerce and Industry to attract investment into agriculture, tourism, real estate, mining and trade and to generate employment in Sri Lanka. AHC highlighted its vermicompost programme, a 1,000-acre seed paddy initiative and will co-host a major international business conference in August.

Overseas Realty (OSEA.N0000) reported group revenue of Rs. 3,292 million and group PBT of Rs. 1,926 million for the quarter ended 31 March 2026. Higher rental rates and occupancy lifted WTC, Mireka Tower and Havelock City Mall revenues; NAV/share was Rs. 54.43 and EPS Rs. 1.47.

Colombo posted its biggest monthly gain since July 2025, with the ASPI up 7% and the S&P SL20 up 5.1% in April, with average daily turnover of Rs.3.66bn. Yesterday the indices fell (ASPI -0.38% to 22,550) on losses in John Keells, Sampath and Commercial Bank amid net foreign outflows of Rs.75mn.

Sri Lanka's rupee closed at 319.75/320.00 to the US dollar, slipping below 320 as inflation reached the central bank's 5% target; the central bank intervened around 319.50 and conducted repo operations while bond yields remained broadly steady.

Colombo Stock Exchange closed lower with the ASPI down 0.38% to 22,549.53 and market turnover at 3.44 billion rupees; capital goods led turnover (984.6 million). Lion Brewery and Watawala Plantations were top positive contributors while Dialog Axiata, John Keells and Commercial Bank were top negatives; Brent rose above $113.

Melwa Conglomerate hosted its annual 'Night of the Generals' on 27 February at Cinnamon Life, Colombo, featuring a Talk Show on 'Smart and Resilient Cities' with international experts George Kunihiro and Naveed Anwar. The event drew senior professionals and highlighted Melwa's role in Sri Lanka's construction and industrial sectors.

Kedella Enterprises Pvt. Ltd. won two awards at the People’s Excellency Awards 2025 — “Innovative Enterprises Leader in Sri Lanka” and “Most Trusted Enterprises Company in Sri Lanka.” The ISO 9001:2015-certified construction firm is noted for deluxe residential projects, eco-friendly building solutions and flexible customer financing.

Colombo market closed in the green for a fourth straight session as the ASPI rose 0.07% to 22,635 and the S&P SL20 gained 0.18% to 6,241.01; turnover was about Rs.4.2bn and foreign investors were net sellers of Rs.332.5m. CINS, BREW and JKH were among top contributors while diversified financials and banks led turnover.

Government has initiated plans for cable car projects at Sri Pada and other tourist sites and will implement visa-free entry for citizens of 40 countries from 25 May to boost arrivals. Feasibility studies, sanitation upgrades in national parks and a new coastal tourist zone were also discussed.

The Cabinet approved calling for investment proposals to develop about 1 acre (1 rood 12.4 perches) on Maradana Road, Colombo 10, into a mixed-development IT innovation hub to foster local tech talent and the digital economy.

Colombo Stock Exchange closed up, ASPI +0.07% to 22,635, with diversified financials leading turnover (Rs 1.98bn) helped by the debut of Janashakthi; total market turnover was Rs 4.19bn.

Fitch affirmed Sri Lanka’s Construction Guarantee Fund’s National Insurer Financial Strength rating at 'BB(lka)' with a Stable outlook. Fitch noted premium income rose 284% to LKR38m in 2025, underwriting loss narrowed to LKR104m and capital was adequate at about LKR2.0bn.

RIUNIT will host 'Driving Growth Through Real Estate: 10 Year Plan' on 5 May 2026 at Port City Colombo to develop a 10-year roadmap for Sri Lanka's property sector; RIL Properties' CEO Hiroshini Fernando and other industry leaders will participate.

Colombo Stock Exchange closed flat as the ASPI rose 0.03% to 22,620.15. Top positive contributors were Commercial Bank, John Keells and ACL Cables while DFCC and Central Finance lagged; Janashakthi (JXG) is set to start trading on April 29 with 2.3 billion shares.

Prime Constructions, the construction arm of Prime Group, has achieved ISO 9001:2015 certification. The accreditation confirms standardized quality management across its project lifecycle, aiming to reduce defects, improve on-time/on-budget delivery and bolster customer and investor confidence.

The ASPI rose 0.20% (44.68 pts) to 22,612.31 as foreign investors were net buyers of Rs. 242.25m; market turnover was nearly Rs. 3bn on 141m shares. Gains were led by CINS, DIAL, SAMP, CARS and DFCC, with food, beverage & tobacco leading turnover (25%) and capital goods plus real estate adding 25%.

Government has invited local and international investors to submit EOIs to develop and operate Mattala Rajapaksa International Airport, with EOI documents available 27 Apr–8 Jun and a required proposal guarantee of $500. A pre-proposal briefing and site visit is scheduled for 22 May.

Primary surplus rose 86.7% YoY to Rs.222.82bn in Jan 2026 and the overall budget deficit narrowed to Rs.3.81bn, reflecting marked fiscal consolidation and bringing Sri Lanka closer to a ~$700m IMF tranche conditional on pricing reforms. Higher energy costs and reconstruction spending remain risks; the government announced a Rs.100bn short-term relief package for the energy shock.

Colombo Stock Exchange opened higher with the ASPI up 0.11% to 22,592 and the S&P SL20 up 0.13% to 6,212 on turnover of Rs 799 million. Sampath Bank and John Keells were among top gainers while NDB, Access Engineering and LB Finance led declines; Browns Beach Hotels to delist with trading suspended from April 28.

The Asian Development Bank estimates Sri Lanka has about $6 billion of unrealised export capacity — exports could rise 47% if gaps are addressed — and says weak export growth has widened the trade deficit and pressured the rupee ahead of rising external debt repayments. Usable reserves cover roughly three months of goods imports, limiting the Central Bank's ability to defend the currency.

Census 2024: elderly share rises to 18% while total fertility falls to 1.3, signaling rapid ageing and a narrowing future workforce. Labour force participation is 47.3% (52.7% inactive) and NCD prevalence is 19.2%, raising long-term health, pension and housing pressures.

The Cabinet approved plans to revise the National Housing Policy to better address evolving housing and human settlements challenges, with a focus on low-income communities. A committee of experts will be appointed to lead the overhaul, updating the 2019 policy toward more sustainable, coordinated housing solutions.

Siam City Cement (Lanka) Ltd signed an MoU with the Chief Secretary of the Southern Province to deliver three training programmes to upskill provincial engineers and technical officers on SLS 573, quality control, construction management, waterproofing, durable concrete and mix-design optimisation.

The Colombo market closed lower as the ASPI fell 0.32% (73.23 pts) to 22,566.58, with foreign investors a thin net buyer of Rs. 3.4m. Top negatives included Bukit Darah, Ceylon Beverage, RIL Property and Sampath; turnover was led by food & beverage while Ceylon Cold Stores and Nawaloka gained and Access Engineering and Softlogic Capital fell.

Cabinet approved awarding a Rs. 356.22 million (exclusive of taxes) consultancy contract to Resources Development Consultants Ltd to conduct a feasibility study and prepare detailed plans for extending the Kelani Valley Railway Line from Avissawella to Ratnapura.

The Cabinet approved an expert committee to assess and revive 2,562 stalled National Housing Development Authority projects that aimed to build 64,407 units. Only 386 villages are completed and 10,532 units delivered so far, with Rs. 11.26 billion estimated to finish remaining units.

The EPF's listed equity portfolio rose 27% to Rs. 188.85 billion at end-2025. The fund cut holdings from 65 to 59, fully exited six counters (Cargills Bank, Ceylon Hotels, Colombo Dockyard, Jetwing Symphony, LAUGFS Gas, Sierra Cables) and added Hemas (40m shares); gains were led by banks and diversified stocks.

Colombo Land and Development Company PLC appointed Dayani Kiriwattuduwa as a Non-Executive Director; she is currently Director (Legal) at the Urban Development Authority with 19+ years' experience and expertise in unauthorized construction and regulatory compliance.