News & market updates

UNP says the Sri Lankan rupee has depreciated from Rs.292 to Rs.354 in the 20 months since the current government took office, blaming a failure to continue the previous economic programme and external pressures including the Middle East war, higher shipping costs and a stronger US dollar. The party warned exporters may gain while workers and the public face higher living costs, noting the apparel sector views depreciation positively.

Opposition Leader Sajith Premadasa urged the Government to begin negotiating a successor IMF program, saying Sri Lanka has $7bn in reserves against the IMF's $14.2bn target by March 2027 and would need about $600m/month to bridge the gap. He noted ongoing talks with the IMF to adjust the current EFF amid Middle East war-driven oil-price shocks and rupee weakness.

Colombo Dockyard PLC appointed Dilrukshi Kurukulasuriya, Executive Director and Chief Human Resources Officer of DIMO PLC, to its Board as a Non-Executive Independent Director. She has over 25 years' experience in human capital and has led DIMO's HR initiatives since 2008.

BAN Group upgraded its Boutique Marketing AI Ecosystem with new agentic AI capabilities, claiming the update can reduce creative development time and cost by more than 60%. The enhancement centers on MADAI, BAN’s proprietary platform for creative experimentation and advertising intelligence.

Hellmann Worldwide Logistics and MAS Holdings will develop an 8,000+ sqm built-to-suit fashion logistics hub in Kimbulapitiya, six km from Bandaranaike Airport, to serve as Hellmann’s South Asia fashion hub. The facility features dual-zone humidity/climate control, solar panels and scalable regional distribution capabilities.

The Joint Apparel Association Forum (JAAF) said the Sri Lankan rupee's 4.8% depreciation against the US dollar reflects wider global pressures (Middle East conflict, higher fuel and shipping costs) rather than domestic weakness, and that a weaker rupee can boost apparel export competitiveness.

The Cabinet approved plans to draft Sri Lanka’s first inbound labour migration policy to regulate recruitment and oversight of foreign skilled and semi-skilled workers; a Steering Committee will be appointed to prepare the draft framework to address sectoral labour shortages and centralise monitoring.

Sri Lanka told an SCO delegation it is keen to join Shanghai Cooperation Organization initiatives and sought support to promote tourism and investment, highlighting Port City and Free Trade Zones. Talks focused on boosting engagement in tourism, transport, logistics and agriculture.

Colombo Stock Exchange rose as the ASPI gained 0.21% to 21,833, with banks leading turnover at Rs.599.8 million and the rupee weakening to Rs.352.50. Amana Bank announced a registered address change effective May 19, 2026; its shares closed up 1.85% at Rs.27.50.

SLTDA and SLTPB have endorsed the 'ONE LOVE' Reggae Festival (7–9 Aug 2026 in Bentota; after-party 10 Aug at Port City Colombo), an event expected to boost hotel occupancy, F&B revenue, transport demand, jobs and international tourism exposure.

JAAF said the Sri Lankan rupee's recent 4.8% depreciation reflects global pressures (Middle East conflict, higher fuel and shipping costs) rather than domestic weakness, and that a managed weaker rupee can boost apparel export competitiveness, jobs and FX earnings.

Sri Lanka Customs collected 122 billion rupees in the first 18 days of May, about 65% of the month's 187.8 billion-rupee target. Higher collections reflect stronger enforcement and rebounding imports, but a 50% surcharge on vehicle import duty from May 16 may reduce future customs revenue.

Economist Ganeshan Wignaraja said Sri Lanka should plan for an 18th IMF programme as the current programme ends in mid-2027 and large debt repayments fall due from 2028. He warned Cyclone Ditwah and the Middle East war have raised oil prices, hit remittances and tourism, and pushed the economy toward a slower-growth, higher-inflation scenario.

Centre for a Smart Future warned the government that Sri Lanka's trade, export and FDI reform agenda lacks ambition and urgency, risking greater economic pain as global conditions worsen. It urged rapid implementation of the Export Development Plan, a coherent FDI strategy and operationalising the Economic Commission.

The ASPI fell 2.59% (592.28 points) to 22,313.47 — its third-largest single-day points decline — as the CSE closed sharply lower with turnover nearly Rs.4.9bn and foreign net outflow of Rs.114.3m. Key negative contributors included John Keells, RIL Property, Hayleys, Commercial Bank and Colombo Dockyard while capital goods and banking sectors led turnover and losses.

Nine major Middle East airports lost an estimated $900m–$1bn in revenue over March–April 2026, a 55% shortfall after a 27m passenger decline (54% YoY) and steep cargo drops. Jet fuel costs nearly doubled and average scheduled capacity fell to ~53%, pressuring operators' cash flows.

Colombo Stock Exchange closed slightly lower—ASPI down 0.07% at 22,298 and S&P SL20 down 0.21% at 6,148, with turnover Rs.2.32bn. Top contributors included Dialog, Vallibel One, Colombo Dockyard and Browns; Singer reported Q4 profit up 77% to Rs.2.48bn and Union Chemicals declared a Rs.44/share dividend.

The India–Sri Lanka Business Forum in Mumbai on 13 May 2026 highlighted renewed momentum in trade, investment and connectivity across tourism, renewable energy, ICT, logistics and infrastructure, with John Keells chair Krishan Balendra among delegates promoting deeper private‑sector ties.

The Ceylon Chamber of Commerce will host the Sri Lanka Climate Summit 2026 on 9 June 2026 at Taj Samudra, shifting focus to implementation, technical readiness and climate-linked finance. Platinum sponsors include Commercial Bank and Dilmah Tea; strategic sponsors include Nestlé Lanka, Cargills and Colombo Stock Exchange.

Continental Cars & Commercials Pvt Ltd will reintroduce a major German automotive brand to Sri Lanka with an official launch in Colombo later this month and is building a modern showroom and fully equipped workshop. The company says it will provide comprehensive aftersales support, trained staff and a customer loyalty club; the brand and lineup will be announced ahead of the launch.

Sri Lanka's services sector contracted in April 2026, with the CBSL PMI falling to 46.7 from 59.4 the previous month, driven by higher fuel prices, post-festive seasonal slowdown and weaker tourist arrivals.

Sri Lanka's manufacturing PMI fell to 42.6 in April from 66.7 in March, signaling a contraction. CBSL said declines in new orders, production and employment were driven by fading festive demand, fewer working days and seasonal layoffs, while suppliers' delivery times lengthened due to holiday disruptions and West Asia conflict.

Sports Commune, led by Manjot Kalra and Mayank Goel, has acquired the Jaffna Kings ahead of Lanka Premier League Season 6. The new owners have pre-signed Bhanuka Rajapaksa and Dunith Wellalage and say they will focus on youth engagement, digital media and long-term sporting development.

The Ministry of Energy and BOI issued a Request for Information (23 Apr 2026) inviting investors for green hydrogen and green ammonia projects, targeting $1bn annual export revenue by 2030 and 70% renewable electricity by 2030. The non-binding RFI window closes on 5 June 2026.

Asian stocks fell as drone attacks in the Gulf pushed Brent above $111/bbl and global bond yields higher (US 10-year ~4.63%), raising inflation and tightening risks; Nvidia and major retail earnings this week will test equity resilience.

Colombo Stock Exchange closed lower as ASPI fell 2.59% (592.28 pts) to 22,313.47. Brokers cited broad selling with John Keells, RIL Property, Hayleys, Commercial Bank and Colombo Dockyard weighing on the index while Ceylinco Insurance was a positive contributor; Lion Brewery and Ceylon Beverage reported higher quarterly profits.

Uber Sri Lanka launched Hybrid Subscriptions for Moto and Tuk drivers, introducing an 'earn first, pay later' option and maintaining 0% trip commission while offering time-based and earnings-based subscription plans for full- and part-time drivers.

The Sri Lankan rupee weakened, with the Central Bank's USD selling rate at Rs. 331.15 and buying rate at Rs. 323.53 on 15 May — the weakest selling rate since Dec 2023 — extending depreciation amid global shipping, energy and fertiliser shocks.

Energy Ministry and the BOI issued an RFI on 23 April 2026 inviting domestic and international investors to develop green hydrogen and green ammonia projects in Sri Lanka, targeting $1 billion in annual export revenue by 2030. The non-binding RFI (open to 5 June 2026) covers production, storage, export terminals and component manufacturing and notes potential BOI facilitation and incentives.

Sri Lanka's tea production fell 8.5% year-on-year in April 2026 to 24.22 Mn/Kgs, with Low Grown output down 14.4%. January–April cumulative output dropped 5.3% to 83.94 Mn/Kgs, and Asia Siyaka Commodities cited dry weather and reduced fertiliser use by smallholders.