News & market updates

The BOI launched 'Ready to Invest', a digital platform showcasing over $3bn of investor-ready projects across eight priority sectors. BOI said Sri Lanka attracted $1.06bn FDI in 2025 and about $1.9bn of BOI-approved projects are set to commence, led by urban/mixed-use ($970m), manufacturing ($650m), tourism ($400m) and logistics ($385m).

President Anura Kumara Dissanayake will inaugurate construction of Phase II (Rambukkana–Galagedara, 18.65 km) of the Central Expressway tomorrow. The government approved over Rs.112 billion in contracts across seven packages and will fully finance the project domestically.

IMF approved a US$695m disbursement to Sri Lanka under its EFF despite breaches including intensified import controls and a cyberattack that led to a missed US$2.5m external payment; authorities requested a waiver and pledged corrective actions.

The Sri Lankan-German Business Forum 2026 opened in Colombo to promote bilateral trade and attract FDI, with a particular focus on maritime and logistics investment. The three-day forum features a startup and innovation showcase and panels on maritime development, export competitiveness, infrastructure financing and GSP+ trade concessions.

John Keells Holdings reported FY2025/26 Group EBITDA of Rs.80.01bn (up 75%), recurring PBT of Rs.35.72bn (up 143%) and recurring profit attributable of Rs.13.24bn, and declared a final interim dividend of 10 cents to bring FY26 total to 30 cents (Rs.4.42bn). The group cited broad-based contributions from Retail, Transportation and Leisure, and noted improved performance at NTB and double-digit premium growth at Union Assurance.

Meridian Talent, a specialist recruitment division of Meridian Creative Solutions, launched to provide human-first, alignment-focused hiring for mid-to-senior technology roles, promising curated shortlists typically within 7 days and operating on a no-placement-no-fee basis.

Tokyo Cement reported FY26 turnover of Rs.61,011m (+22%) and 4Q turnover of Rs.17,623m (+36%), with FY26 PAT of Rs.2,580m (down from Rs.3,459m). Profitability was hit by rupee depreciation, higher material, fuel and financing costs even as volumes rose 28% and national cement consumption grew 19% to 5.62m MT.

EFL Global appointed Rooso Ramachandran as Global CEO, who spent 24 years building the company’s India business. He will focus on stabilising performance, strengthening execution and positioning the logistics business for sustainable long-term growth.

Dividend · Rs 0.24 · XD Jun 5, 2026

Final dividend of LKR 0.24/share; XD 2026-06-05; record 2026-06-07; payable 2026-06-24; FY ended 31st March 2026

The Sri Lankan–German Business Forum 2026 will be held in Colombo on May 27–29 to bring German public and private sector representatives together with Sri Lankan stakeholders to explore collaboration and investment, focusing on maritime, logistics and IT. Prime Minister Harini Amarasuriya and senior German officials will attend; sessions will cover port infrastructure financing, digitalisation and boosting exports to the EU.

Prime Lands and Melwa Conglomerate have acquired a marina-front parcel at Port City Colombo for a USD 57.6 million ultra-luxury waterfront residential development, with construction expected to finish within four years and projected revenue over USD 250 million. The project is positioned to drive opportunities in construction, engineering and logistics while raising Colombo's international investment profile.

Tokyo Cement Group reported Q4 turnover of Rs.17,623mn (+36% YoY) and PAT of Rs.577mn; for FY it posted turnover of Rs.61,011mn (+22%) and PAT of Rs.2,580mn, citing currency depreciation and higher material and fuel costs that weighed on margins.

Dividend · Rs 1.60 · XD Jun 4, 2026

Final dividend of LKR 1.6/share; XD 2026-06-04; record 2026-06-04; payable 2026-06-23; FY 2025/26

Sri Lanka's total exports reached US$1,380.93m in April 2026 (up 6% y/y) and US$5,784.38m in Jan–Apr 2026 (up 4.3% y/y); merchandise exports rose 9.87% in April while services exports, led by ICT/BPM and financial services, also expanded.

Sri Lanka's services exports fell 6.13% in April 2026 to $317.16m. ICT/BPM exports rose 24.89% to $146.09m and financial services grew 119.41% to $10.45m, while construction and transport/logistics exports declined sharply.

Sri Lanka's merchandise exports rose 9.87% to $1,063.77m in April 2026. Growth was led by coconut-based products (up 23.49% to $92.17m, with activated carbon +58.32%), rubber products and processed food & beverages, while tea fell 6.82% and apparel fell 4.88%.

Government amended its Gazette (effective 18 May) to make the 50% customs duty surcharge apply to vehicle-import LCs opened on or before 15 May if they were altered after 15 May; changes to quantity, VIN, description or specifications are now subject to the surcharge, closing a loophole amid allegations of prior knowledge.

Hemas Holdings (HHL) reported record FY2025/26 results with group earnings of Rs.8.92 bn (up 10.7% YoY) and revenue of Rs.127.4 bn (up 8%). The group has earmarked over $100m for investments over the next four years and expects an FY27 acquisition to raise international revenue to 10% from 3%.

BOI Acting Chairman Dr. Sulakshana Jayawardena unveiled a pipeline of 30 structured investment projects across manufacturing, logistics, tourism and infrastructure aimed at Vietnamese investors. He said Sri Lanka has regained macro stability with GDP growth of 5% in 2024–25 and FDI rising to $1.063bn in 2025 (target $1.5bn in 2026).

Sampath Karunaratne, Creative Director at MullenLowe Group Sri Lanka, was awarded the 2026 Next Generation Leader Scholarship to attend the Cannes Lions festival. This is the second consecutive year a MullenLowe Sri Lanka creative has received the scholarship.

EFL Global has appointed Rooso Ramachandran as its Global CEO as part of an organizational realignment to strengthen global integration and execution. Rooso, who led EFL's India business for 24 years, will focus on stabilizing performance and operational excellence.

Indian High Commissioner Santosh Jha commended the Indian CEO Forum at its 22 May 2026 AGM, which reaffirmed commitments to deepen India–Sri Lanka economic and commercial ties and urged upgrading the bilateral FTA to boost investment. The Forum represents 70+ members and said members contributed over $2 million during Cyclone Ditwah.

The Sri Lankan–German Business Forum 2026 will run 27–29 May in Colombo to promote FDI in maritime, ports and logistics and to showcase Sri Lankan IT startups. The conference, attended by the Prime Minister, will focus on port infrastructure financing, boosting exports to the EU and digitalisation.

President Anura Kumara Dissanayake said Sri Lanka faces external pressures from the Middle East conflict—higher oil and import costs and rupee depreciation—but rejected a repeat of the 2022 collapse, noting Central Bank reserves near $7bn and a $700m inflow expected; he assured no shortages of fuel, gas, milk powder or fertiliser.

National consumer price inflation (NCPI) rose to 4.7% year‑on‑year in April from 2.4% in March, driven by higher fuel, electricity and transport costs; non‑food inflation climbed to 7.8%. Transport contributed 1.69 percentage points and housing/water/electricity/gas contributed 1.26 percentage points to headline inflation.

ITAK MP Shanakiyan Rasamanickam called for a bipartisan national response and proposed expanding Aswesuma, transport subsidies, temporary VAT relief on essentials and measures to stabilise the rupee after it weakened about 6% to Rs.327.60 by 18 May 2026. He also urged curbs on luxury imports, criticised untargeted fuel subsidies and proposed a Sri Lanka Development Fund to boost tourism and FDI.

ASPI fell 4.26% for the week but closed Friday up 0.44% at 21,929.64, with market turnover near Rs.2.2bn and net foreign outflow of Rs.11.6m; top positive contributors were JKH, DOCK, MELS, RICH and SAMP amid cautious investors ahead of the CBSL policy meeting.

John Keells CG Auto (JKCG) said it did not open any Letters of Credit for BYD vehicles on the day before Gazette notification No. 2488/56 (15 May 2026) and denied prior knowledge of the temporary vehicle import surcharge. The company said its BYD orders were placed between March and 30 April 2026 and no LCs were established after that date.

Sri Lanka's Board of Investment pitched a pipeline of 30 project-ready opportunities to Vietnamese investors as the economy rebounds — GDP grew 5.0% in 2024 and 2025 and FDI rose to US$1.063bn in 2025. Projects span manufacturing, logistics and port services, tourism, pharma, and mixed infrastructure developments.

CT Smith says Sri Lanka's current pressures are driven mainly by an external energy shock, with near-term multilateral inflows of about $1.38–1.4bn (IMF $700m, ADB $480m, World Bank $200m) expected to help stabilize the rupee. The firm notes the rupee has weakened ~6.2% YTD to Rs329.64, inflation rose to 5.4% in April, and the CBSL policy decision is due 26 May (base case: rates held at 7.75%).