News & market updates

John Keells' JKCG Auto launched a campaign with Bank of Ceylon and Sri Lanka Insurance to boost NEV adoption among government employees from 4 May–31 July 2026, offering financing, preferential leasing, tailored insurance, home charging access and aftersales support.

The Ceylon Chamber will lead a senior corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May 2026, with leaders from John Keells, Aitken Spence, Hayleys, Sierra Cables and Vidullanka among participants to engage Indian investors on trade and investment opportunities.

The ASPI reclaimed 23,000 on 8 May 2026, closing at 23,063.98 (+0.29%) with total turnover of Rs. 4.09 billion. Ceylinco Insurance and Hayleys were the main positive contributors, Colombo Dockyard led turnover, and John Keells was the top negative contributor.

Vietnamese President Tô Lâm called for a new phase of strategic economic cooperation with Sri Lanka, urging direct Colombo–Ho Chi Minh flights and closer ties in logistics, manufacturing, food processing, textiles, tourism and services to boost trade and investment. A Sri Lanka–Vietnam trade and tourism forum was held in Colombo to advance these plans.

Prime Minister Harini Amarasuriya set a bilateral trade target of $1 billion with Vietnam by 2030. She highlighted Sri Lanka's economic recovery (5% real GDP growth in 2025, 2.36m visitor arrivals) and invited Vietnamese investment across manufacturing, tourism, IT and logistics.

Colombo market rose 2.28% for the week as the ASPI crossed 23,000, closing at 23,063.98. Top positive contributors were CINS, HAYL, DOCK, DIAL and HNB; turnover was ~Rs.4.1bn and foreign investors were net buyers of Rs.26.2m.

Sri Lanka and Vietnam set a target to increase bilateral trade to $1 billion by 2030. Discussions covered renewable energy, digital infrastructure/AI, manufacturing and agriculture; Vietnam donated 100 tonnes of fertilizer and new airline routes to Colombo are planned.

British Council Sri Lanka held the IELTS Partner Meet 2026 to recognise top partner organisations and present awards, and highlighted the transition to a fully computer-delivered IELTS while emphasising continued partner support and quality in delivery.

Unisys integrated Sri Lanka-based Fits Cargo into its Cargo Portal Services, expanding global air freight route options and booking capabilities for freight forwarders and adding Expedite All's US ground network for last-mile delivery. CPS serves more than 33,000 freight forwarding users, enabling pricing, booking and tracking in one portal.

Shermans Logistics (an Esna–McLarens JV) and India’s Glottis signed a Memorandum of Understanding in Colombo to collaborate on logistics, renewable-energy logistics, project cargo, 3PL and potential JVs to expand India–Sri Lanka trade flows.

BOI says potential German investors will visit Sri Lanka for the German Business Forum (GBF) 2026 in Colombo on May 27–29. The event targets boosting FDI into export sectors (textiles, apparel, rubber) and areas like logistics, precision engineering and renewable energy.

US dollar rose above Rs.320 today, mid-rate at Rs.320.45 (buy Rs.317.26, sell Rs.324.87); CBSL reports the rupee has depreciated about 2.9% against the USD as of April 30, 2026.

The Cabinet designated six firms as Businesses of Strategic Importance under the Colombo Port City Economic Commission, expected to attract $14.6m in FDI over five years and create about 650 jobs. The firms will operate across IT, logistics, consultancy, public utilities, infrastructure and maritime technology and receive incentives under the law.

China has retooled its Belt and Road Initiative, with deals linked to the programme reaching a record $213 billion in 2025. The revamp emphasizes smaller projects, greater equity stakes (about 40% by 2025) and 'soft connectivity' to export standards, services and digital systems abroad.

Sri Lanka and Türkiye held their second political consultations in Ankara on May 5, focusing on defence and security cooperation and exploring expanded investments and joint ventures in pharmaceuticals, renewable energy, tourism, logistics and technology. They also discussed connectivity, maritime cooperation and education links.

Emirates Group reported record profit before tax of AED 24.4 billion for the year ended 31 March 2026. The group also recorded AED 150.5 billion in revenue, AED 59.6 billion in cash assets, declared an AED 3.5 billion dividend to its owner, and noted the UAE corporate tax rate rose to 15%.

Sri Lanka's Ministry of Energy and Board of Investment issued an RFI for green hydrogen and green ammonia project proposals, with submissions due 5 June 2026. The move supports the National Hydrogen Roadmap targeting 70% renewable power by 2030 and USD 1bn annual green energy exports by 2030.

Economist Ganeshan Wignaraja said Sri Lanka could position itself as an Indian Ocean hub for finance, trade, aviation and services if it maintains macroeconomic stability and implements reforms. He urged considering an 18th IMF programme as the current one ends mid-2027 and warned rising oil/gas/fertilizer prices and war-linked tourism and remittance disruptions pose risks.

Colombo Dockyard reported a loss of LKR 428.1 million for the quarter ended Mar 31, 2026 and completed transfer of control to India’s Mazagon Dock (51% stake). The company raised LKR 12.93 billion in a rights issue, increasing stated capital to LKR 13.65 billion and total equity to LKR 15.50 billion.

Cabinet approved the Sri Lanka National Export Development Plan 2026-2030, targeting $36 billion in export earnings by 2030. The plan was prepared by the Export Development Board with ADB technical assistance to guide and monitor export competitiveness.

Cabinet approved land acquisition for the long-delayed Kelani Valley railway modernisation (Maradana–Avissawella). Funds have been allocated to identify and acquire land across seven divisions and to compensate and relocate affected households.

Tempest PE Partners completed three deals: a minority investment in Acentura (enterprise software), a majority acquisition of The Grand Surf Hotel (leisure/beach club) and a RM30m raise for Malaysian-listed PTT Synergy to scale smart warehousing. Tempest will play an active advisory role supporting governance, KPIs and regional expansion.

Sri Lanka and the Maldives pledged deeper economic cooperation at the Maldives–Sri Lanka Business Forum in Colombo, with Maldives announcing investment‑friendly reforms and leaders urging expansion of bilateral trade (US$137m in 2025), tourism, infrastructure and sector partnerships.

Sri Lanka's construction PMI eased to 57.1 in March 2026 from 70.3 in February, remaining in expansion, the central bank said. Firms reported limited fuel and raw materials, rising costs and logistics delays tied to the Middle East conflict, while new orders, hiring and purchases rose.

Sri Lanka Customs collected 236.5 billion rupees in April, 30.5% above its April target, and 919.3 billion rupees in the first four months, 33.7% above the cumulative target; first-four-month revenue jumped about 50% year-on-year.

CSE All Share Index fell 0.49% (110.70 pts) to 22,584 and the S&P SL20 dropped 0.31% to 6,225 as brokers said Middle East escalation spurred retail selling. Bank counters saw selling, turnover was Rs 2.15bn with crossings in JKH, COMB, LLUB and LFIN, and Colombo Dockyard narrowed its quarterly loss to Rs 428.1m.

The IMF omitted Sri Lanka’s 2026 GDP projection from its April 2026 World Economic Outlook, signaling a fragile recovery linked to incomplete debt restructuring, governance failures and banking-sector issues, Ganeshan Wignaraja said.

Hambantota International Port hosted senior representatives from CMA CGM and Evergreen to discuss potential new container services as carriers reassess routes amid Middle East instability. HIP has expanded container yard capacity and handling equipment, but no formal service announcements have been made.

Private taxi operators at Bandaranaike International Airport are requesting temporary relief, asking for a 50% reduction in monthly rent for three months after paying over Rs.4 million/month and facing low tourist arrivals and unfair competition from meter operators. They warn of staff layoffs and loss of luxury transport capacity if relief is not granted.

Sri Lanka's Ambassador met Suez Governor Hani Rashad on 19 April to discuss boosting trade and investment ties and proposed cooperation in the maritime sector, including joint ventures to manufacture boats and fishing vessels and invited a Suez investor delegation to Sri Lanka Expo 2026. The Governor expressed strong support, citing Suez's strategic Red Sea/Suez Canal location.