News & market updates

ASPI rose 42% in 2025, lifting market capitalization 41.67% to Rs. 8.07 trillion and generating Rs. 2.4 trillion in value. Final-day turnover exceeded Rs. 4.6 billion, three firms (CALH, JFP, WTS) listed during the year, and JKH, SFCL, ACL, SAMP and HASU were top contributors.

President Anura Dissanayake urged unity in rebuilding Sri Lanka, noting 2025 recorded the lowest budget deficit since 1977, the first-ever primary surplus and nearly USD 17 billion in export earnings.

Colombo Stock Exchange ASPI rose 41.7% year-on-year in 2025, closing 0.79% higher at 22,624.31 on Dec 31. Capital goods, food & beverage and banking led turnover, with John Keells, Senkadagala Finance, ACL Cables, Sampath Bank and HNB Assurance among top contributors; net foreign outflow was Rs103 million.

Aggregate profits of 273 listed companies fell 12% YoY to Rs.176.5 billion in Sep-25, ending a seven-quarter growth streak. Banks (Rs.52bn, +39% YoY) and diversified financials (Rs.39bn, +112% YoY) underpinned a QoQ rebound, while food, beverage & tobacco and capital goods posted steep declines.

Parliament passed 26 Acts in 2025, including amendments to major revenue laws (Inland Revenue Act, VAT, Social Security Contribution Levy, Betting and Gaming Levy), two Appropriation Acts, the National Minimum Wage Act, Companies and Electricity Act amendments, and changes to data protection and rubber control.

The Cabinet approved liquidation of the state-owned Sahasya Investment Company and transferred management of the country's expressway network to a dedicated operational unit within the Road Development Authority. Cabinet said Sahasya made no tangible progress since its 2020 establishment.

Myland Developments PLC appointed independent non-executive director Savanth Sebastian as Chairperson of its Board. He brings 21 years of experience in economics and financial services and holds senior roles at Colombo City Holdings and Ambeon Capital.

Sri Lanka’s 2025 combined IMF-backed stabilization and reform gains with a late-November setback from Cyclone Ditwah. Key items include a Central Bank rate cut (lending window to 8.25%), DFCC’s sale of a 50% Acuity stake to HNB for LKR 6.5bn, and John Keells launching the $1.2bn City of Dreams resort alongside major energy project deals and rooftop-solar grid issues.

John Keells Properties reports TRI-ZEN in Colombo 02 is achieving rents of >USD1,000 (1-bed), ~USD1,250 (2-bed) and ~USD1,400 (3-bed), implying rental yields of about 5.5–6% as demand and limited availability accelerate interest. The development's amenities and integrated smart-home technology are cited as key drivers.

The Colombo stock market gained Rs.84 billion as the ASPI rose 1.42% to 22,445.89. Top contributors included Colombo Dockyard, Melstacorp, Hatton National Bank, Richard Pieris and Commercial Bank, with capital goods, banking and materials driving turnover and hotel stocks seeing buying interest.

Colombo Stock Exchange rose 1.49% as the ASPI closed 313.56 points higher at 22,445.89, led by gains in Colombo Dockyard, Melstacorp, HNB and Commercial Bank. Market turnover fell to 3.4 billion rupees and net foreign outflow was 36.73 million rupees, led by John Keells.

Cyclone Ditwah has inflicted widespread damage in Sri Lanka, with reconstruction costs estimated up to US$7 billion and GDP growth seen slowing to about 3% in 2026. Business confidence fell (BCI down from 189 to 164) and the government has sought US$200m in IMF emergency aid.

Sri Lanka's Securities and Exchange Commission is exploring introducing infrastructure and municipal bonds to fund reconstruction and public projects, with a proposal submitted and talks planned with selected municipal councils. The SEC said bonds would be raised project-by-project and open to small investors, but weak municipal creditworthiness and post‑crisis risks remain.

Sri Lanka sought Chinese support to establish a nationwide EV charging network and to urgently restore railway lines and bridges damaged by Cyclone Ditwah; the Chinese ambassador said Beijing will assess the damage and convey the request to authorities.

Sri Lanka has asked China to support installation of electric vehicle (EV) charging stations nationwide, and the Chinese ambassador said he will relay the request to Beijing. The government also sought Chinese help to reconstruct flood‑damaged railway lines and bridges and assist with cyclone relief.

SLIIT’s Civil Engineering honours degree received full five-year recognition from the Institution of Engineers, Sri Lanka (IESL), upgrading from prior conditional status. The recognition validates the programme’s curriculum, faculty and facilities and strengthens graduates’ pathway to Chartered Engineer status, supporting the construction sector.

Port City Colombo marks 11 years as CHEC reiterates progress, announcing commissioning of public utility connections to Colombo’s grid and citing over USD 1bn in land development investments, including a USD 120m marina by Browns Investments (LOLC group).

Commercial Development Company PLC has appointed Chinthaka Dharmasena as a Non-Executive Director. Dharmasena is Assistant General Manager – Services at Commercial Bank and led sustainability initiatives, including the bank’s carbon-neutral operational status.

The Management Club will host the Northern Investment Summit 2026 on 21–22 January 2026 in Jaffna to showcase KPMG-vetted, district-specific bankable proposals aimed at unlocking investment in the Northern Province; Hatton National Bank (HNB) is the official banking partner.

Colombo Stock Exchange opened mixed: ASPI rose 0.29% to 22,132.33 while the S&P SL20 slipped 0.06% to 6,037.79 on turnover of about Rs. 3.7bn and net foreign outflows of Rs. 200.5m. Colombo Dockyard, DFCC and Richard Pieris led gains while John Keells and Commercial Bank fell.

Government budget deficit for Jan–Nov 2025 fell 73.25% YoY to Rs. 325.6bn while the primary surplus rose 109.28% to Rs. 1.94tn. Parliament approved Rs. 500bn supplementary and Rs. 200bn reallocated (Rs.700bn) for post‑Ditwah relief, and the IMF approved a $206m RFI.

Depositors allege court-appointed controllers of the defunct Finance & Guarantee group diverted asset sale proceeds — including an alleged Rs.200m hotel investment and other withdrawals — contrary to a Supreme Court-approved 51% repayment plan, and will seek renewed Court intervention.

Lanka Realty Investments PLC said its subsidiary On'ally Holdings commissioned Sri Lanka's largest outdoor LED display at Unity Plaza after investing up to Rs. 200 million, with management projecting about Rs. 150 million in additional annual revenue.

S&P Global says global credit conditions should remain resilient into 2026, supported by steady growth, easing interest rates and investor demand, but warns of uneven sector outlooks and risks from potential overinvestment in AI-driven data centres. It forecasts 3.2% global growth and a US speculative-grade default rate easing to 4% by Sept 2026.

Colombo Stock Exchange closed Friday with the ASPI up 0.50% (109.79 pts) to 22,068.84, re-entering the 22,000 mark. Turnover was over Rs.2.7bn, foreign investors were net buyers (Rs.18.9m), with banking counters and names like DOCK and RICH among top contributors.

The Cabinet approved awarding the contract to Sathuta Builders Ltd to plan and complete the remaining work on the Torrington Mawatha housing project in Colombo 07, covering 115 housing units.

The SEC has deferred the suspension of trading in Millennium Housing Developers PLC shares until 31 August 2026 (previously due 31 December 2025). The company was placed on the Watch List in December 2023 after auditors raised a going-concern emphasis for FY2023, repeated in FY2024 and FY2025; shares closed at Rs.6.60.

The Jaffna International Trade Fair will return 23–25 January 2026 at Muttraweli Ground, featuring 400+ stalls; last year the event attracted 78,452 visitors and 5,000 invited business delegates.