News & market updates

Foxygen launched Ozone’s architectural hardware in Sri Lanka as the exclusive distributor at the Architects Exhibition. The partnership brings Ozone’s range (glass hardware, railing systems, automatic doors, fittings, locks, digital safes) to local builders and includes technical training and specification support.

Dividend · Rs 1.50 · XD Mar 12, 2026

First Interim dividend of LKR 1.5/share; XD 2026-03-12; record 2026-03-12; payable 2026-03-31; FY ending 31st March 2026

Dividend · Rs 1.70 · XD Mar 12, 2026

First Interim dividend of LKR 1.7/share; XD 2026-03-12; record 2026-03-12; payable 2026-03-31; FY 31st March 2026

Treasury Secretary Harshana Suriyapperuma said Sri Lanka achieved about 75% of its 2025 capital expenditure and is prioritizing project readiness and feasibility studies to ensure multi-year returns. He contrasted this with past low-return 'white elephant' projects that boosted GDP short-term without lasting benefits.

Geoffrey Bawa Trust will support the restoration of the Seema Malaka at Colombo's Gangaramaya Temple, aiming to restore Bawa's original design. The Trust is working with Venerable Dr. Kirinde Assaji Thero and Channa Daswatte will undertake renovation of a later extension.

High Commissioner M. Rizvi Hassen said Sri Lanka will work to restore and deepen engagement with the Maldives, citing Bank of Ceylon’s 44-year presence and a goal to return to pre-2019 levels of 20,000–30,000 Maldivian visitors/residents. He highlighted opportunities across tourism, financial services, construction, agriculture and healthcare.

Home Lands secured a 3+ acre Port City Colombo land parcel in a $40.1m deal to build a $300m mixed-use project of twin 40-storey towers with over 600 units.

A US-Israel strike on Iran and ensuing Strait of Hormuz disruption sent Brent crude up over 7% (above US$90) and led the Ceylon Petroleum Corporation to raise diesel prices (Auto +Rs4, Super +Rs6), threatening Sri Lanka's fuel supplies, tea exports and imports of construction materials.

Construction PMI climbed to 75 in January, the sector's second-highest reading, signaling strong expansion. New Orders rose to 77.8 and the Employment Index to 54.2 as firms reported increased project starts, higher hiring and inventory build-up amid longer supplier lead times.

The Cabinet approved establishing a National Housing Operational Committee and allocated around Rs. 100 billion for new house construction in 2026. The committee will coordinate and standardise housing programs across ministries, councils, NGOs and private groups to streamline delivery and monitoring.

The EU has allocated an additional €1 million (over Rs 370 million) to support humanitarian relief and basic services for communities affected by Tropical Cyclone Ditwah in Sri Lanka, adding to prior €2.35m and other EU partner assistance.

PMI Construction Total Activity Index rose to 75.0 in January 2026, its second-highest reading on record. New projects and orders drove higher activity, employment and inventory build-up, though firms reported skilled labour shortages and lengthened supplier delivery times.

Portugal's Foreign Minister Paulo Rangel called for a 'new era' of structured economic partnership with Sri Lanka, highlighting cooperation in renewable energy (solar and wind), tourism, infrastructure/public works and digital development. Both countries agreed to reactivate their Joint Cultural Commission, and Portugal said it will advocate constructive engagement on Sri Lanka's GSP+ review in 2027.

Colombo stocks rose with the ASPI up 0.33% to 23,781.23, led by blue-chip gains from JKH, HAYL, MELS, AEL and LMF. Banking counters faced selling pressure after Q4 results while capital goods drove turnover (27%); foreigners were net buyers of Rs.194m.

Cabinet approved awarding the consultancy contract for Phase II of the Anuradhapura North Water Supply Project to M/s. Nippon Koei Ltd. JV for JPY 82.39 million (Rs. 332.01 million) to supervise construction. The GoSL- and JICA-funded project will source water from Yaan Oya Reservoir and extend safe drinking water to several Anuradhapura divisions.

Home Lands has reserved a more-than three-acre land parcel at Port City Colombo for USD 40.1m (≈LKR 12.5bn) and plans a USD 300m mixed-use development of twin 40-storey towers with over 600 units. The company says the independent investment underscores its financial strength and confidence in Port City as an SEZ.

The Land Valuation Indicator for Colombo District rose 10.6% year-on-year in 2H 2025; Residential LVI +12.4%, Commercial +11.3% and Industrial +8.0%. LVIs also recorded moderate semi-annual increases versus 1H 2025, with commercial and residential gaining more.

US Embassy Chargé d’Affaires Jayne Howell told an AmCham forum that deeper US engagement with Sri Lanka will depend on reciprocal trade, two-way FDI and predictable, transparent rules to attract American capital. She highlighted Port of Colombo expansion to 15m containers by 2027 and SelectUSA pathways for Sri Lankan firms to invest in the US.

Global debt hit a record $348 trillion at end-2025, rising by nearly $29 trillion over the year as governments added more than $10 trillion, the IIF said. The shift toward sovereign borrowing raised government debt to about $106.7tn, left emerging markets with large 2026 rollover needs, and heightens interest-rate and funding risks.

Prime Lands Residencies PLC has acquired the Otters Club car park in Colombo 7 to develop 'The Elizabeth', a ground-plus-23-storey residential tower on about one acre. The development will integrate the historic Otters Club on floors 4–5 and is now open for reservations.

The Central Bank of Sri Lanka said Colombo District's Land Valuation Indicator rose 10.6% YoY to 261.9 in H2 2025, with Residential LVI up 12.4% to 273.1, Commercial up 11.3% to 260.6 and Industrial up 8.0% to 251.9. The overall LVI also rose 2.1% versus H1 2025.

Net liquidity surplus rose to Rs. 322.93 billion (highest in 22 years) as the CB drained liquidity via repos; weekly T‑Bill yields fell for a sixth straight week and a Rs. 140 billion Treasury Bond auction across three maturities is scheduled (settlement 3 Mar 2026).

Altair has attracted flagship showrooms from global automotive brands—TATA, JAECOO and OMODA are operational while BYD, DENZA and KIA will open shortly—enhancing the development's retail profile and involving corporate groups John Keells Holdings, Hayleys and DIMO.

Colombo market closed marginally higher: ASPI +0.05% (12.48 pts) at 23,703.10 and S&P SL20 +0.06% at 6,685.27 on turnover >Rs.4bn. Diversified financials, capital goods and banking led activity with CDB, DIAL, PLR, JKH and DOCK as key positive contributors while foreigners were net sellers (Rs.72m; YTD outflow Rs.15.9bn).

Prime Lands Residencies PLC (PLR.N0000) has secured the Otters Club car park in Colombo 7 to develop 'The Elizabeth', a ground-plus-23-storey residential tower on about one acre and has opened reservations.

Economist Talal Rafi urged a disciplined shift from stabilisation to growth, calling for trade and productivity-driven reforms alongside fiscal discipline and reserve accumulation. He noted debt-to-GDP has fallen to near 100%, IMF growth at ~2.9% (this year)/3.1% (next) and reserves projected to rise to ~$8.8bn by year-end.

Colombo stocks closed in red, with the ASPI down 0.39% (92.40 pts) to 23,690.62 and the S&P SL20 down 0.71% to 6,681.12 on turnover of nearly Rs.3.7bn. Price losses in John Keells, Melstacorp and Nations Trust Bank were key negatives while ACL Cables, Access Engineering and Dialog were top turnover names.