News & market updates

John Keells Holdings reported Group EBITDA up 68% year-on-year to Rs.23.76 billion in Q3. Nine-month EBITDA rose 84% to Rs.55.10 billion, profit attributable was Rs.6.48 billion, City of Dreams and the Colombo West terminal are ramping up, and a second interim dividend of Rs.0.10/share was declared.

BOI unveiled two University Town projects—Keragala ($370m, IRR 15–18%, payback 6–7 yrs) and Sooriyawewa ($640m, IRR 16–17%, payback 7–8 yrs)—to attract local and foreign investment into education infrastructure and services.

David Pieris Logistics opened Jaffna’s first purpose-built multi-user 3PL warehouse near Palaly International Airport, offering warehousing, handling and regional distribution for FMCG, retail, agriculture and manufacturing and aiming to boost supply-chain connectivity and local employment.

The ASPI closed at 23,992.11, up 0.13% (31.95 pts) after hitting an intraday high of 24,068.22, with turnover over Rs.6.9bn and foreign net outflows of Rs.480.2m. Capital goods led turnover (Rs.1.91bn) with John Keells and ACL Cables among top contributors while market breadth remained weak.

SEC and the Colombo Stock Exchange held the 'Invest Sri Lanka' investor forum in Dubai on 22 January 2026 to promote Sri Lanka's capital markets and meet regional investors and institutions including Mubadala and the Abu Dhabi Securities Exchange. CSE highlighted the ASPI at over 23,800 (≈120% since Oct 2024) and USD 976m raised in 2024–25, while the Central Bank discussed resuming foreign credit lines with UAE banks.

President Anura Kumara Dissanayake and an IMF delegation agreed to continue the Extended Fund Facility (EFF) programme without changes; discussions on the release of the sixth tranche will resume in March. The government also presented a Rs. 500 billion supplementary estimate for rural relief and infrastructure restoration.

An IMF team led by Evan Papageorgiou concluded a visit to Sri Lanka to assess Cyclone Ditwah damage and held talks with government and CBSL on fiscal response, monetary and financial sector stability and support under the Extended Fund Facility; a follow-up IMF mission is planned for the next EFF review.

The Finance, Planning and Economic Development Ministry issued a circular expanding relief for Cyclone Ditwah‑hit micro and small businesses, providing one‑time grants (Rs.200,000 for registered small businesses; Rs.50,000 for unregistered home units; Rs.25,000 for mobile hawkers; building grants up to Rs.5 million) and concessional loans of Rs.250,000–25 million at 3%–5% with grace periods for recovery and reconstruction.

Cabinet approved inviting international competitive bids to lease UDA land for large-scale recreational developments: nine plots totalling 13.57 acres along the Diyawanna Oya (Frolic Island hub) and a 10-acre plot by Gregory Lake, Nuwara Eliya. The Gregory Lake plot will be offered on a 50-year lease and supporting infrastructure work around Battaramulla is already complete.

Cabinet approved cancellation of the Korean-funded Medical Equipment Division Development Loan Project and will seek funding from the Korean EXIM Bank for a feasibility study to re-establish Matara General Hospital at Kaburugamuwa. Officials cited implementation constraints and said the study will align with the Matara urban development plan.

John Keells Holdings, Hemas Holdings and JAT Holdings outlined growth strategies at First Capital's investor symposium; JKH highlighted City of Dreams and West Container Terminal Phase One at ~90% utilisation. Hemas sees consumers shifting back to branded quality and demographic-led convenience growth, while JAT targets post-cyclone reconstruction and manufacturing expansion.

Sri Lanka is pitching tax holidays of up to 15 years and positioning Colombo Port City as a regional financial and trade hub to attract UAE investors. The government says it will streamline approvals under the new Investment Promotion Act and is targeting agriculture, tourism, maritime logistics and renewable energy.

Altair has issued more than 100 individual title deeds since ownership transferred to Blackstone India. A Management Council has been formed and Realty Management Services (a subsidiary of Overseas Realty Ceylon PLC) was appointed facility manager, with Indocean Developers continuing building improvements and deed issuance expected to accelerate.

INSEE Sanstha Cement was named Sri Lanka’s Most Awarded Cement Brand in 2025, winning multiple honours including SLIM Kantar People’s 'People’s Housing and Construction Brand of the Year' (14th consecutive), CIOB 'Sustainable Cement Brand of the Year', and 'People’s Pinnacle – Best Cement Brand of the Year 2025'.

Presidential Special Envoy Hanif Yusoof told Channel News Asia that Sri Lanka is on a path to economic recovery and pitched Port City Colombo as an investor-ready, export-oriented, services-led development aimed at attracting financial services, IT/digital exports, professional services, logistics and regional HQs.

John Keells Holdings chairman Krishan Balendra said the private-sector Rebuilding Sri Lanka Fund has mobilised Rs. 4.2 billion and urged resilience- and community-focused investment. Experts called for a shift from reactive disaster response to risk-informed development, including spatial planning and early warning systems.

INFRACON 2026, an infrastructure and construction exhibition, will be held 3–5 July at SBMEC Colombo with about 200 exhibitors and 5,000 trade visitors; the event will showcase HVAC-R, power and energy, green grid, safe water and building materials, and promote industry collaboration.

IRCSL reports 24,549 Cyclone Ditwah insurance claims totaling about Rs.58.5 billion, with Rs.5.1 billion disbursed (Rs.4.0 billion to non-motor). Insurers have admitted 18,434 claims (75.09%) and were directed to expedite remaining assessments and interim/interim payments.

RIL Property PLC has appointed Vickum Nawagamuwage to its Board as an Independent Non-Executive Director. Nawagamuwage is the Sri Lankan founder of the Santani wellness resort and has prior education at Harvard and experience with Deloitte and KPMG.

The Colombo market hit an intraday record of 24,052.06 but closed flat, with the ASPI down 0.01% at 23,953.09 and the S&P SL20 up 0.20% at 6,663.12. Turnover was over Rs.5.4bn; York jumped 24.81% while SAMP, RICH, DFCC, CTHR and CARG were top negative contributors.

Sampath Bank PLC and Prime Lands Residencies PLC signed an MoU to offer a 0% equity financing facility for Prime Residencies condominiums, with Sampath financing 100% for completed projects and releasing 30% upfront for projects under completion.

Sampath Bank and Prime Lands Residencies signed an MoU to offer a 0% equity financing facility for buyers of Prime condominium projects. Sampath will finance 100% for completed projects and release 30% upfront for projects under completion to support buyers and developers.

Sri Lanka's central bank is expected to keep its policy rate at 7.75% ahead of an IMF review of the sixth tranche of a $2.9bn programme. The IMF approved $206m in emergency funding for cyclone recovery after the World Bank estimated $4.1bn in damage and the government approved 500bn LKR in extra spending.

First Capital Holdings (CFVF.N0000) hosted its 12th Investor Symposium and presented a 2026 outlook forecasting Sri Lanka GDP to soften to 3.0–4.0% (from 5.0% in 2025). The presentation flagged Cyclone Ditwah-driven spending weakness, higher post-storm capital expenditure needs and renewed debt-management risks, alongside discussion on rates, FX and bond markets.

Construction has started on Bay One Residences Colombo, a $112 million, 231-unit luxury residential development in Port City Colombo. It is the first residential project within the Port City SEZ and signals the zone's move from regulatory readiness to active private-sector delivery.

The Government has disbursed Rs. 18 billion — 84% of the Rs. 21.54 billion in Cyclone Ditwah relief allowances — to affected households. A Rs.5 million-per-house reconstruction program and ongoing payments (Rs.50k, Rs.25k, Rs.15k) are being rolled out with varying district-level completion rates.

Darley Butler bought 15 million York Arcade shares for Rs.198 million, raising its holding to 15.9m shares (10.6%). Darley Butler is a subsidiary of E.B. Creasy (EBCR); Lankem Ceylon (LCEY) holds a 50.15% controlling stake after buying from Colombo Fort Land & Building (CFLB).

Land prices in Colombo suburbs and Western Province rose notably in 2025, with Colombo suburbs up 8% to Rs.2.3m per perch, Colombo 1-15 up 4% to Rs.12m, Gampaha up 15% to Rs.769,097 and Kalutara up 10%. Suburban towns such as Yakkala, Homagama and Negombo recorded ~35% gains and Ingiriya led five‑year growth at 322%.

Lee Hedges PLC appointed Hisham Jamaldeen and Archie Warman as Non-Independent Executive Directors. Both have 20+ years in corporate finance and real estate and hold directorships at On'ally Holdings and Lanka Realty Investments; Jamaldeen has also served at Hayleys PLC.