News & market updates

Sri Lanka's cabinet approved resumption of the Lower Malwathu Oya hydro project, with the estimated cost rising 106.02% from Rs22.9bn in July 2019 to Rs47.18bn in Dec 2025. The increase reflects about a 74% rupee depreciation and broader inflation and monetary policy effects.

Colombo Stock Exchange closed 0.02% lower as the ASPI slipped to 22,329.69, with banks and capital-goods names dragging the market. LOLC Finance filed to list Rs 15bn of debentures; turnover rose to Rs 3.3bn and net foreign outflow was Rs 130.44m.

Kristall Spaces Lanka unveiled All-Suite Resort Talpe Heights, a 56-unit BOI-approved luxury oceanfront apartment project at Dalawella Beach with prices from LKR 50 million and projected investor returns of 13–20% p.a. Units are fully furnished, will be managed by All-Suite Resorts, and form part of a multi-project tourism-focused expansion.

Sri Lanka signed a $200 million loan agreement with the Asian Development Bank to fund the Mahaweli Water Security Investment Program (MWSIP) Stage 2. The project will partly finance completion of canal and tunnel irrigation works (about 7km tunnel, ~68km of canals) and distribution networks to boost agricultural productivity and climate resilience in the North Central Province.

World Bank Group will make up to $120 million available by repurposing existing project funds to support Sri Lanka's recovery from Cyclone Ditwah, restoring healthcare, water, education, agriculture and infrastructure. The IFC will also provide advisory support and targeted investments to bolster agriculture, manufacturing, logistics and MSMEs.

Sri Lanka will move a Rs500 billion supplementary estimate into next year’s budget to fund reconstruction after Cyclone Ditwah, which left over 800 dead or missing, damaged roads (RDA estimates Rs190bn) and destroyed 108,000 ha of paddy. The World Bank will repurpose $120m and the IMF has pledged $200m in fast-disbursing support.

ASPI fell 0.95% (213.49 pts) to 22,294.77, erasing Rs. 52.9bn of market value; top negative contributors were DOCK, CINS, COMB, CFIN and DFCC.

World Bank is making up to US$120 million in emergency support available to Sri Lanka by repurposing funds after Cyclone Ditwah. The support will restore essential services (health care, water, education, agriculture, connectivity) and the IFC will provide advisory and investments to help private-sector recovery (agriculture, manufacturing, logistics, MSMEs).

Sri Lanka's GDP grew 5.4% in Q3 2025. Agriculture rose 3.6%, manufacturing 8.1% and services 3.5%, with insurance up 18%, financial services 13.2%, accommodation/food 9.3% and IT services 8.5%; central bank stability supported activity despite a weakening rupee.

Sri Lanka's economy grew 5.4% year-on-year in Q3 2025 to Rs. 3,325.6 billion (2015 prices). Industrial activity rose 8.1%, agriculture 3.6% and services 3.5%, supported by higher tourist arrivals, domestic credit expansion and stronger construction, manufacturing and services.

ADB upgraded Sri Lanka’s GDP growth forecasts for 2025–26, citing robust private-sector credit growth, stronger industry and services performance, and planned infrastructure investment. The report flagged Cyclone Ditwah risks and revised inflation forecasts downward.

Government has disbursed over Rs. 13 billion for relief, recovery and reconstruction after Cyclone Ditwah. Starlink satellite units have arrived to boost connectivity in affected areas and the Treasury is coordinating funds and data-driven resource allocation.

John Keells Properties has launched sales for Phase 4, the final phase of the VIMAN Ja-Ela residential development. Phase 4 offers two- and three-bedroom homes with amenities and over 60% of the development reserved for open areas and shared facilities.

Groundworth (PVT) Ltd received Special Recognition for Land Investments at the Asia Property Guru Awards 2025, highlighting its position in Sri Lanka’s real estate sector.

Parliament will meet on Dec 18 to consider a supplementary estimate of about 500 billion rupees for Cyclone Ditwah recovery. President Anura Dissanayake said the supplementary estimate will be brought into the 2026 budget.

Cabinet approved re-tendering a prime Perahera Mawatha (Kollupitiya) land parcel for a 99-year lease, inviting fresh international competitive proposals after the previous investor failed to meet obligations. The UDA will seek hotel or commercial mixed-development bids (up to 50% residential) to secure a credible developer for the high-value Colombo site.

Dividend · Rs 1.00 · XD Dec 23, 2025

First Interim dividend of LKR 1/share; XD 2025-12-23; record 2025-12-23; payable 2026-01-13; FY ending 31st March 2026

ADB approved a $200 million loan for the Mahaweli Water Security Investment Program Stage 2 to complete North Central Province Canal works and boost water and food security in North Central Sri Lanka. The project will benefit over 35,600 farming households, irrigate about 14,912 ha of paddy and mobilize additional cofinancing.

UN warns the world is not prepared for escalating climate disasters and urges Sri Lanka to rebuild climate-resilient infrastructure and avoid resettlement in high-risk flood zones, warning the country will face stiff competition for international aid.

Colombo Stock Exchange rose 0.22% as the ASPI closed at 22,508.26 with turnover down to 3.02 billion rupees. Vidullanka and Windforce were awarded contracts to develop 50MW wind plants in Mannar, and several stocks (Senkadagala Finance, John Keells, Hayleys, Windforce, Vidullanka) helped lift the index.

China Harbour Engineering Company (South Asia & Southeast Asia) completed emergency clearing of the A5 highway from 4–10 Dec, reopening the route after Cyclone Ditwah. The operation deployed 24 land-clearing machines and 36 workers in coordination with the Sri Lanka Army and the RDA.

Sri Lanka's cabinet approved seeking a US$200m ADB loan for stage two of the Mahaweli Water Security Investment Program, a US$536.5m project to irrigate about 17,500 hectares and provide drinking water to around 175,000 families.

After 86,488 houses were damaged by Cyclone Ditwah, the government launched a housing programme offering up to LKR 5m for land and LKR 5m for construction for those in unsafe areas, and up to LKR 2.5m for rebuilding. The article draws lessons from the 2004 tsunami programme on beneficiary identification, ownership documentation, donor coordination and land-selection to inform the Ditwah recovery.

Colombo Dockyard said the SEC approved Onomichi Dockyard to sell its entire shareholding to Mazagon Dock Shipbuilders after the company's rights issue, subject to a mandatory offer; DOCK closed at LKR234.25 (up LKR17.25). Speculative interest in construction-related stocks (eg. ACL, Swisstek) lifted the ASPI 0.16% and S&P SL20 0.18%.

Overseas Realty (Ceylon) PLC’s Havelock City Mall launched 'Magical Christmas' with a Nov 27 tree-lighting and the HCM CARES outreach, distributing more than 1,000 flood relief packs. The mall will continue December performances and a 'Magical Fortune – Unwrap and Win Big' promotion.

MIT provided a free information system and Microsoft technical support to Sri Lanka's Department of National Planning to collect digital data on business and property damage from Cyclone Ditwah for the 'Rebuilding Sri Lanka' fund. Multiple countries and multilateral institutions have pledged financial and material aid.

Finance Ministry Secretary Dr. Harshana Suriyapperuma says Rs. 1,893 million has been received for the 'Rebuilding Sri Lanka' initiative and that insurance companies have begun compensating losses from Cyclone Ditwah, with minor damage payouts already underway and larger claims to follow after verification.

Colombo stock market rose for a third straight session, gaining Rs.119.7 billion as the ASPI climbed 1.76% to 22,422.43; capital goods and materials led turnover, with JKH down to Rs.20.90 while DOCK, SIRA and AEL advanced.