News & market updates

Sri Lanka Cricket's Transformation Committee has decided no international cricket stadium will be built in Jaffna due to insufficient funds; the project will be scaled back to a more limited cricket ground while the final scope is reviewed.

Colombo Stock Exchange rose 0.89% as the ASPI gained 198.46 points to 22,407 and the S&P SL20 rose 0.99% to 6,242, with turnover of 2.7 billion rupees. Top positive contributors were Dialog Axiata, John Keells and Hayleys, while Bukit Darah and Colombo Fort Land & Building were top decliners.

The IRD said individuals can sell residential properties tax-free if they have owned the property for at least three years and lived in it for more than two years; it also confirmed gains on sale of personal vehicles are exempt (retrospective to 1 Apr 2024) under the Inland Revenue (Amendment) Act No. 11 of 2026.

The Condominium Developers Association of Sri Lanka re-elected Pinsiri Fernando as chairman at its 12th AGM on 23 June 2026 and appointed an executive committee that includes Roderick David (Overseas Realty), Aelian Gunawardena (JAT Property Group) and Brahmanage Premalal (Prime Lands).

Three Sinha Industries won the Gold Award for “Best Stall with Locally Assembled Products” at the INCO 2026 exhibition. The recognition highlights the company’s focus on local manufacturing, engineering solutions and solar energy products, reinforcing its role in Sri Lanka’s manufacturing and construction sectors.

Colombo market fell 0.22% as the ASPI closed at 22,208.58 with turnover near Rs.1.2bn and foreign net outflows of Rs.130.6m. Main negative contributors included SAMP, JKH, LOFC, GRAN and RICH, while SPEN, BOGA and HAYC recorded gains.

First Capital Research: aggregate earnings of 271 listed companies fell 11.4% YoY in the March 2026 quarter (third straight quarter), but underlying earnings rose 30.1% YoY after adjusting for major one-offs. Food, Beverage & Tobacco dragged the aggregate result while retailing and telecom posted strong gains (e.g. UML, DIAL, SLTL, SINS).

A Cabinet-appointed committee reviewing Sri Lanka’s Free Trade Agreements is expected to submit recommendations in July, and an India Trade Desk has been launched to help Sri Lankan firms tap the Indian market. Bilateral trade reached about $5.8bn in 2025, with Sri Lankan exports to India over $1bn and imports $4.3bn.

Headline NCPI inflation rose to 5.4% YoY in May from 4.7% in April, the third consecutive monthly increase. Rises were driven by higher petrol and LP gas prices and increases in several food items (vegetables, fish, onions), while rice, eggs and sugar eased; core inflation edged to 4.5%.

The IRD enacted broad tax reforms under the Inland Revenue (Amendment) Act No.11/2026 effective 3 June, including new capital gains rates (15% for individuals/partnerships; 30% for trusts, unit trusts, mutual funds and NGOs), expansion of a 5% withholding tax on many professionals, expanded TIN use, unit-trust compliance rules and stronger enforcement.

Cabinet approved a 'Protecting Eastern Province Lands' committee and a police unit to tackle illegal land acquisitions, unauthorised coastal developments and land reclamation in the Eastern Province; it will reclaim unused Mahaweli lands and plan tourism with coastal safeguards.

Lee Hedges PLC revised payment terms for its Rs.3.16 billion acquisition of Lanka Realty Developments, making an initial Rs.1.1bn payment and deferring Rs.2.06bn payable within six months at AWPLR+1.5%. Vendors transferred their LRD shares on receipt of the initial payment and Lee Hedges will own 100% on completion.

Cabinet approved steps to implement electrification of key railway corridors — Main Line (Maradana–Ragama), Kelani Valley Line (Maradana–Makumbura) and Coastal Line (Maradana–Panadura) — and upgrades to stations at Gampaha, Veyangoda, Mirigama and Polgahawela.

Lee Hedges PLC appointed Archie Warman as Chairman and Afzal Ahamed Marikar and Noel Joseph as Independent Non-Executive Directors after Lanka Realty Investments acquired a 51% stake (and Eighth Wonder 20.48%) at Rs.216 per share in January.

Dialog Enterprise (Dialog Axiata PLC) has partnered with Prime Lands Residencies PLC to provide high-speed Dialog Fibre connectivity to residents of The Colombo Border development in Peliyagoda. Services include dedicated fibre bandwidth, managed Wi-Fi, IPTV and 24x7 network operations support.

The ASPI edged up 0.01% to 22,256.49 with turnover above Rs.1.56bn and foreign investors net-selling Rs.225mn. Hemas, NDB and Hayleys Fibre were top turnover contributors (Hemas and Hayleys up, Panasian Power down).

Sri Lanka will enact key reforms within the next 90 days, including changes to the BOI and EDB and tabling the Investment Protection Act and PPP Bills to attract investment and boost exports. The IMF says a clear PPP Act is crucial for governance, while labour reform timing is uncertain.

Senok Trade Combine handed over a fleet of Foton Tunland G7 double-cab vehicles to NEM Construction, with the locally assembled units delivered from Senok’s Western Automobile Assembly in Kurunegala, underscoring support for construction mobility and after-sales services.

Colombo Stock Exchange trended up, with the ASPI rising 0.27% (61.12 pts) to 22,314.64 on turnover of Rs.609.9m, led by capital goods (Rs.241.2m). Lee Hedges announced revised payment terms for its Rs.3.15bn acquisition of Lanka Realty Developments (Rs.1.1bn paid, Rs.2.057bn due within six months plus interest).

President Anura Kumara Dissanayake chaired a meeting to find swift solutions to strengthen Sri Lanka's apparel sector and boost dollar export earnings; discussed measures include plug-and-play factory infrastructure, land/legal reforms, VAT relief proposals, expanded FTAs and a National Single Window due end-July.

Prime Lands has commenced construction of 'Kaloora', Kalutara’s first master-planned gated residential community. The project is being built by the group's construction arm, Prime Constructions, and includes gated amenities and convenient access to Kalutara town and nearby facilities.

Sri Lanka urged Belgian and Luxembourg investors to seize opportunities in infrastructure and green energy, pointing to planned PPP and investment protection reforms and competitively priced land. Officials highlighted Port City expansion, shipbuilding, marinas and agricultural processing as priority sectors for partnerships.

John Keells Properties (part of John Keells) unveiled the on-site show apartment for the VIMAN Ja-Ela development, a six-acre project with more than 60% dedicated to green and open space. Visitors can now tour the model home and see planned amenities such as a clubhouse, pool, gym and walking paths.

Prime Lands Residencies PLC has started construction of MON VIE, an ultra-luxury condominium (Ground + 25) in Colombo 05 with prices from LKR 86 million, featuring a floating rooftop restaurant and scheduled for completion in April 2030.

Colombo market rose for a second session as the ASPI gained 0.22% to 22,436.14 on turnover above Rs.3.1bn, driven by elevated HNW activity with PKME, Dialog and NDB among top contributors; foreigners were net sellers of Rs.333.3m.

Officials reviewed delayed implementation of 2026 budget projects after Sri Lanka spent only 17.4% (about Rs.240 billion of Rs.1,380 billion) of allocated capital expenditure so far this year. They cited procurement delays, institutional bottlenecks and cyclone-related diversions and urged expedited action to boost year-end spending.

Fitch says a rising share of emerging-market sector outlooks are 'deteriorating' as the US–Iran war disrupts oil supplies, explicitly flagging APAC banks in Sri Lanka and the Philippines as hit by the shock. Sovereigns may see spillovers to growth, inflation and bond yields.