News & market updates

Cabinet approved awarding a consultancy to Resources Development Consultants (Pvt) Ltd to carry out a feasibility study and prepare detailed plans for the Avissawella–Ratnapura extension of the Kelani Valley Railway at a cost of Rs. 356.22 million (exclusive of taxes).

Transport Minister Bimal Rathnayake said Central Expressway Phase III is progressing, with the Pothuhera–Rambukkana stretch about 75% complete by March and a ~Rs.2 trillion public infrastructure pipeline planned for 2026–2028. Analysts warn rising input costs, tight financing and potential energy shocks could pressure timelines and margins, especially for smaller contractors.

Heads of Multilateral Development Banks agreed to deepen cooperation to provide timely support to countries amid global uncertainty, prioritising mobilisation of private finance, scaling local-currency financing, and joint initiatives on critical minerals, water infrastructure and AI.

Groundworth (Pvt) Ltd launched “Legado”, an exclusive land development in Homagama offering eight premium plots with prices starting at LKR 1.2 million per perch. The site is positioned near the Kottawa Interchange and local amenities (schools, hospitals, Cargills Food City) to target long-term appreciation under the Western Megapolis plan.

The ASPI fell 0.89% (203.26 pts) to 22,570.03 as Middle East tensions and higher global oil prices weighed on the Colombo bourse. RIL Property, C T Holdings, Commercial Bank and Browns Investments were among top negative contributors while Hikkaduwa Beach Resort and other tourism counters saw notable retail turnover.

World Bank projects Sri Lanka's growth will moderate to 3.6% in 2026, citing higher energy prices and a transition to more sustainable growth. It flagged risks from persistently high energy costs, flight disruptions hitting tourism, skilled-labour shortages, weak public capex execution and climate shocks.

Colombo Stock Exchange closed down with the ASPI down 0.89% to 22,570.03 and the S&P SL20 down 0.66% to 6,222.79. Asiri Hospital (+12.37%), Melstacorp and Carson Cumberbatch led gains while RIL (-5.92%), C T Holdings and Dialog were top decliners; turnover Rs 4.11bn.

Belluna Lanka completed 447 Luna Tower in Colombo 02, a 44-floor residential development with 202 apartments and a limited release of ready-to-move-in units for sale. The project, built by Sanken and designed by PWA with Arup advisory, was recognised at the Sri Lanka National Construction Awards 2025.

More than 90 students from Don Bosco Institute's civil engineering, nursing and hotel & tourism management faculties graduated on April 10, with most reportedly securing jobs before the convocation. The institute is accredited up to NVQ Level 6 and serves about 250 students across six faculties.

Ninewells Hospital broke ground on a new building to expand surgical capabilities, patient care environments and medical infrastructure, aiming to increase capacity and specialised services in Sri Lanka.

Colombo Stock Exchange rose with the ASPI up 0.85% to 22,451.60 as global markets rallied. Top contributors included Carson Cumberbatch, Royal Ceramics, John Keells and Hemas while LOLC, DFCC and Singer were negatives; Hatton National Bank announced listings of 4,249,706 voting and 1,251,268 non-voting shares.

IBH Real Estate marks six years in business, having grown into a trusted real-estate services firm focused on luxury transactions and offering legal, advisory and transactional support to local and international clients.

Sri Lanka's 15th census shows a shrinking workforce and ageing population: total fertility rate fell to 1.3, median age rose to 35, elderly (60+) are 18% of the population and 52.7% of working-age people are economically inactive.

Three Sinha Industries Ltd was awarded the SLIA Product Award of Merit on 27 February 2026 for its locally manufactured Clean Room Door, recognised for durability, hygiene control and suitability for healthcare, laboratory and industrial clean rooms.

ADB forecasts Sri Lanka's GDP to moderate to 4.0% in 2026 and 4.2% in 2027, with inflation set to rise to 5.2% largely due to the Middle East conflict. The economy remained resilient in 2025 with strong private consumption, record remittances, a primary surplus and higher reserves, but higher energy costs and weaker tourism/trade pose risks.

The ADB forecasts growth in developing Asia and the Pacific will slow to 5.1% in 2026 and 2027 (from 5.4% in 2025), citing the Middle East conflict and trade uncertainty; regional inflation is seen rising to 3.6% in 2026. The report warns of risks from higher energy and food prices, shipping disruptions and tighter financial conditions.

Colombo Stock Exchange closed up: ASPI +1.30% (284.12 pts) to 22,128.66. Top contributors included John Keells, Melstacorp and National Development Bank; turnover was Rs5.016bn and HNB Finance announced a Rs2,499,529,714 rights issue (2 for 9).

LANKATILES unveiled an immersive Concept Studio at Architect 2026, winning Overall Best Stall and Best Trade Stall Displaying Local Products. The showcase presented new ranges (including Majestica and mosaics), zoned interior settings and an AI-powered Tile Visualizer for architects and homeowners.

IMF Mission Chief Evan Papageorgiou said invitations were extended to all political parties for talks with its delegation, though the main opposition SJB did not attend; the IMF held discussions with MPs on fuel rationing, fiscal consolidation, under-execution of capital expenditure and anti-corruption frameworks.

The IMF and Sri Lankan authorities reached a staff-level agreement on the combined 5th and 6th reviews of the EFF that, if approved by the Executive Board, would unlock about US$700m, conditional on restoring cost‑recovery fuel and electricity pricing, financing assurances and debt restructuring. The IMF also urged rebuilding reserves with exchange‑rate flexibility, fiscal and revenue reforms, stronger social safety nets, and progress on NPLs and governance reforms.

IMF staff and Sri Lankan authorities reached staff-level agreement on the combined Fifth and Sixth Reviews of the EFF, which, if approved by the IMF Executive Board, would unlock about US$700 million in financing. Approval is contingent on restoring cost‑recovery fuel and electricity pricing and completing financing assurances and debt restructuring.

Sri Lanka's recovery from Cyclone Ditwah has slowed, with more than 149,000 people still displaced and $23.4m pledged of the $35.3m required for the humanitarian plan. OCHA warns rising fuel and energy costs, supply-chain disruptions, heat-reduced hydro output and funding gaps risk food security, livelihoods, tourism and resettlement.

The Rebuilding Sri Lanka Presidential Task Force, chaired by PM Dr. Harini Amarasuriya, ordered expedited compensation payments, repairs to damaged homes and accelerated construction of new housing after Cyclone Ditwah. The PDNA report was presented and the Task Force will meet periodically and hold special district-level discussions to fast-track housing and infrastructure programs.

Cabinet approved relocating the High Court and Magistrate’s Court from Galle Fort to a new judicial complex in Beligaha, handing vacated heritage buildings to the Urban Development Authority for PPP-led tourism redevelopment under the Galle Purnajeewana Project. The move aims to ease congestion, improve accessibility and revitalise underutilised spaces to boost heritage tourism.

The final report of the Census of Population and Housing 2024 was presented to the President; it is the 15th census and the first to use 15,000 tablets and smartphones for nationwide digital data collection, enabling faster transmission and more comprehensive analysis.

Altair has appointed Realty Management Services (RMS), a subsidiary of Overseas Realty Ceylon PLC, as its new facilities management partner to improve operations and resident services, with plans for digital service platforms, stronger security, and energy-efficiency measures.

Altair appointed Realty Management Services (RMS) as its new facilities management partner to enhance operational excellence and resident experience. RMS will implement digital service platforms, improved security and housekeeping, and sustainability and energy-optimization initiatives.

Colombo bourse opened mixed: ASPI rose 0.04% to 21,126.60 while the S&P SL20 fell 0.24%; market turnover exceeded Rs. 3bn and foreign investors were net sellers of Rs. 804.7m. Food & beverage and capital goods led turnover with heavy crossings in Melstacorp.