News & market updates

Amber Adventures warns it may pursue legal action to recover USD 3.5Mn after the Central Environmental Authority ordered suspension of development of the BOI-approved Ambuluwawa Cable Car project pending a site inspection. The company says it has invested about USD 3.5m of the approved USD 12.75m, denies landslide claims and urges BOI intervention.

CHEC Port City Colombo pledged US$300 million in foreign direct investment to fund Phase II development of Port City Colombo. The funding will support core infrastructure and utilities in Sri Lanka’s first multi-services Special Economic Zone, boosting construction and services activity.

Overseas Realty (Ceylon) PLC's majority shareholder Shing Kwan Group donated $100,000 to the Rebuild Sri Lanka Fund to support recovery and rebuilding after Cyclone Ditwah.

CSE ended flat for a second straight session: ASPI down 0.71 pts to 23,607.80 and S&P SL20 down 0.12% to 6,494.76. Top negatives included JKH, DOCK, DFCC, SFCL and HHL while Sierra Cables, Commercial Bank, CDB and RIL recorded gains; turnover ~Rs.4.9bn and foreign net inflow Rs.22m.

Central Bank Governor Nandalal Weerasinghe said Sri Lanka will seek to revise IMF EFF targets and has postponed the fifth review after Cyclone Ditwah, with an IMF team due later this month. He said the RFI was considered to buy time and official reserves are expected to reach close to US$8 billion by year-end.

Sri Lanka's cabinet approved calling for expressions of interest to develop Pelwatte Sugar Factory premises as tourist attractions under a public-private partnership. The Pelwatte Sugar Factory is owned by the Lanka Sugar Company (Pvt.) Ltd.

Kerner Haus Global Solutions PLC has signed a third property management agreement (effective 1 Feb 2026) expected to generate Rs.22 million annually, lifting total estimated annual management fees to Rs.48.1 million. The Slave Island property adds ~440 office seats, taking managed capacity to ~1,440 as part of its asset-light strategy.

Housing, Construction and Water Supply Ministry Secretary Eng. Kumudu Lal Bogahawatta said major construction firms have requested permission to recruit at least 7,500 foreign workers as the sector faces about 20,000 vacancies. He said 10,000 skilled local workers are needed immediately, noted rising material costs (river sand) and proposed using fine aggregate and dedicated brick-manufacturing zones.

Colombo market opened lower as the ASPI fell 0.19% (45.79 pts) to 23,608.51 on turnover of Rs.5.2 billion and a net foreign outflow of Rs.35.4 million. The session saw selling pressure weighing on DOCK, RICH and banks (HNB, SAMP) while JKH, RCL, COMB and PLR were among notable buying/turnover contributors.

Sri Lanka said the SINOPEC Hambantota oil refinery agreement will be finalized in Q1 2026; China pledged support for cyclone recovery and to deepen cooperation on trade, investment and tourism.

Hosking Partners says Sri Lanka's fragmented, 'overbanked' banking sector is constraining returns on capital and credit growth and limiting mortgage/housing finance; the Central Bank has a Master Plan to consolidate banks to boost scale, technology investment and long-term lending.

Verité Research says grants and revenue measures — including time-bound solidarity taxes and an increase in cigarette excise — are critical to finance Sri Lanka's Rs. 500 billion supplementary allocation for Cyclone Ditwah recovery. The allocation raises 2026 government spending to Rs. 7,557 billion and widens the budget deficit from 5.1% to 6.5% of GDP.

CFA Society Sri Lanka will host an evening discussion 'Real Estate Reimagined: Investment Opportunities in a Transforming Market' on 28 January 2026 at Courtyard by Marriott Colombo, featuring panelists including Nayana Mawilmada of John Keells Holdings and Premalal Brahmanage of Prime Group. The session will examine emerging investment opportunities and strategic considerations in Sri Lanka's real estate sector.

Ceylon Hardware Merchants Association donated Rs. 5 million to the Government’s 'Rebuilding Sri Lanka' Fund for Diṭwah cyclone relief, handing the cheque to Secretary to the President Dr. Nandika Sanath Kumanayake. The handing-over was attended by the association's chairman, vice chairman, secretary and a member.

Experts at a CEPA/ODI panel urged Sri Lanka to stick with the IMF program and invest in tourism-related infrastructure to sustain recovery, warning the rebound is fragile after Cyclone Ditwah caused about $4.1bn in damage (around 4% of GDP).

Colombo bourse closed the week up 3.45% as the ASPI rose 0.54% yesterday to 23,654.30, with the market gaining about Rs. 264.8 billion in value for the week and daily turnover over Rs. 8.5 billion; top contributors included JKH, COMB, VONE, CARS and NTB.

China's CPI rose to a 34-month high of 0.8% in December while full-year consumer prices were unchanged, even as the PPI fell 1.9% in December and 2.6% for the year, signaling weak demand. Authorities pledged continued support, including possible rate/RRR cuts and 62.5bn yuan in bond funds for a consumer trade-in scheme.

Lanka Realty Investments PLC (ASCO) announced it has acquired a controlling stake in Lee Hedges PLC (SHAW) in a Rs. 4 billion transaction, adding Lee Hedges' ~Rs. 1.76bn in cash and boosting LRI's recurring income and balance-sheet strength.

Sri Lankan exports to Saudi Arabia rose 19% in Jan–Sep 2025 versus the same period in 2024, while total bilateral trade increased 9%. Embassy-led trade promotion, business delegations, product launches (eg Ceylon Biscuits Ltd.) and a new Saudi–Sri Lanka Joint Business Council were cited as drivers.

India will disburse about US$350m (of a US$450m package) to Sri Lanka denominated in Indian rupees, including US$100m in grants, to fund cyclone recovery — rebuilding roads, bridges and rail, housing, health, education and agriculture.

India plans an execution-led economic push with Sri Lanka in 2026 emphasizing investments, connectivity, digital collaboration and concessional financing, backed by a $450m post-Cyclone Ditwah package ($350m concessional lines, $100m grants). Engineering for the India–Sri Lanka grid interconnection is complete and Colombo Dockyard’s revival with Indian support was cited as ongoing commercial engagement.

Colombo market gained Rs.89.4bn as the ASPI rose 1% to 23,527.13, leaving it 133 points short of the record. Turnover was Rs.12.3bn with real estate (37%) and banking/diversified financials (32%) leading activity while foreigners were net sellers of Rs.1.7bn.

India has committed $30 million in grants to rebuild cyclone-damaged bridges in Sri Lanka, with the first two inaugurations expected next week. The aid package also includes restoration of the Northern railway line and India airlifted Bailey bridge parts and other relief.

Colombo Stock Exchange resumed trading on Jan 8 with turnover of Rs. 12.32 billion, led by a Rs. 3.93 billion crossing in Lee Hedges (SHAW.N0000). Wealth Trust Securities began secondary trading generating Rs. 1.16 billion and the ASPI rose 233.28 pts to 23,527.13.