News & market updates

Dr Parakrama Dissanayake assumed office as Chairman of the Sri Lanka Ports Authority on 17 Feb 2026 and will focus on improving port operations and logistics efficiency. He previously held senior leadership roles at Aitken Spence PLC.

Airport & Aviation Services Sri Lanka (AASL) handled 1,045,097 passengers in January 2026, a new single-month record, surpassing the previous high of 1,034,687 in January 2018.

SLTDA said 159,339 foreign tourists arrived in the first 15 days of February 2026, including 34,879 over the final weekend around the India–Pakistan T20 match. Airfares to Sri Lanka and Colombo hotel rates rose, and total tourist inflows up to mid‑February reached 436,666.

Oniverse Group is investing about EUR 30m to build a new plant in Sri Lanka to produce a capsule used in bras. The company says Sri Lanka remains a specialised hub for technically demanding intimate apparel but faces logistics, labour and cost constraints and needs stable policy to attract long-term investment.

Sri Lanka's manufacturing PMI was 56.1 and services PMI 64.5 in January 2026, indicating continued expansion in both but at a slower pace than December 2025 (60.9 and 67.9). Growth was driven by higher new orders, production and employment in manufacturing and strong wholesale/retail, accommodation and financial services activity in services.

Government issued new Strategic Development Projects regulations granting tiered corporate tax holidays (generally 5–10 years) with investment thresholds starting at >$50m and import-duty/VAT/PAL/CESS exemptions during implementation. Categories cover infrastructure/tourism, manufacturing and agriculture/ICT; motor vehicles excluded.

EU leaders endorsed a 'Buy European Only' policy; Frontier Research says it does not yet directly affect Sri Lanka but could hurt export earnings if GSP+ preferences are diluted. Key vulnerable sectors noted are tea, rubber and apparel, while stricter rules could also affect IT, medical services and electronics ties.

Sri Lanka's manufacturing PMI was 56.1 and services PMI 64.5 in January 2026, both above the 50 threshold indicating expansion. Manufacturing growth slowed from December's seasonal peak and services expansion eased month-on-month.

A high-level Japanese delegation met President Dissanayake to advance plans for a Sri Lanka–Japan export-industrial corridor intended to attract Japanese manufacturing investment focused on exports (notably to India) and deepen bilateral economic ties.

Hayleys PLC held the Chairman’s Awards 2025, with Haycarb PLC winning the Overall Award for innovation in specialty activated carbon for silicon‑carbon anode materials and Hayleys Fabric PLC winning an ESG award for a smart energy‑saving stenter system that cuts fuel use and CO₂ emissions. The awards highlighted innovations across energy transition, agriculture and logistics supporting exports and sustainability.

SriLankan Cargo became the first airline in South Asia to receive IATA CEIV Live Animals certification, confirming its compliance with IATA Live Animals Regulations and capability to transport live animals humanely and securely across its global network.

Sri Lanka and Japan signed a Memorandum of Cooperation to formalise economic policy dialogue and to pursue a roadmap including an industrial economic corridor with a working group to operationalize it. Presentations covered foreign investment policy, export capacity and JETRO and Japanese firms shared insights on the business environment.

Fitzky launched 'Fit Pass', a mobile-app single pass giving users access to multiple gyms and classes across Sri Lanka with up to 70% discounts, free/bonus credits, corporate partnerships and purchase via gifting platforms.

EDB, the Sri Lanka Embassy in Riyadh and the Saudi Food and Drug Authority ran a webinar on SFDA export registration procedures for Sri Lankan exporters, attended by over 90 companies. Presentations covered registration, facility approval and inspections for foods, beverages, fisheries and herbal products; Saudi was Sri Lanka's 23rd export market in 2025 with USD 137.85m exports (+13.3%).

The Ceylon National Chamber of Industries launched the CNCI Achiever Awards 2026 in Colombo on 5 Feb; the 25th annual awards will recognise industrial excellence across Extra Large to Micro categories and the government sector, with applications subject to external and internal judging.

ASPI rose 0.80% (190.27 pts) to 23,900.11 and the S&P SL20 gained 1.38% to 6,710.33, led by strength in large-cap banking stocks. Market turnover was over Rs.5.6bn, foreign investors were net sellers of Rs.167.6m, with HNB, SAMP, COMB, DOCK and NDB among top positive contributors.

The EDB held a hybrid awareness session on 11 Feb 2026 with about 200 exporters to explain the UK’s Developing Countries Trading Scheme (DCTS), providing guidance on recent reforms, eligibility, documentation, rules of origin and how to claim tariff preferences.

The Sri Lanka Export Development Board will hold a specialised workshop on 'Risk Management, Strategies and Incoterms' for potential and SME exporters on 18 February, 9:30am–3:30pm at the NDB-EDB Building in Colombo. The session covers order negotiation, buyer confidence, labelling/packaging, pricing, risk management, Incoterms and payment terms; limited seats, contact the Trade Facilitation Division to register.

John Keells' authorised agent John Keells CG Auto opened the BYD Kandy 3S facility (showroom, service centre and spare parts) in Kandy, expanding BYD aftersales services in the Central Province.

Oniverse (Omega Line) plans a EUR 30 million investment in a new Sri Lanka plant to produce a capsule used in bras, underscoring Sri Lanka's role as a specialised manufacturing base for technically demanding intimate apparel; the group flags logistics, manpower and policy stability as key constraints.

The Board of Investment will host the Sri Lanka Investment Forum 2026 on 30 March at Cinnamon Life, Colombo, focusing on green transition and sector-led investments including renewable energy, green finance, services, manufacturing, infrastructure and leisure. The EU, ADB and ESCAP are supporting the event, which includes parallel sector sessions and a closed-door EU–SL investor dialogue.

Prof. O.G. Dayaratna-Banda warned Sri Lanka remains trapped by ideology, institutional inertia and regulatory red tape and said services account for around 57% of GDP. He flagged weak broadband, skills mismatches and fragmented regulation, and cited a 8.5% of GDP corruption cost estimate.

The Export Development Board met with Sri Lanka's Honorary Consul to Hong Kong Hung Chiu Wah Derek to strengthen trade ties and promote Sri Lanka Expo 2026, focusing on expanding exports, buyer-seller linkages and boosting Ceylon Tea branding in Hong Kong.

The ninth Boat & Marine Show Sri Lanka was held 30 Jan–1 Feb 2026 at Port City, Colombo, showcasing marine tourism and boat-building (50 exhibitors, 90 stalls) to promote exports and B2B links with international buyers. The event aimed to boost nautical tourism and attract investment into boat-building and related services.

Exterminators PLC has launched an AI-powered Report Factory to automate generation of service, audit and pest-risk reports, boosting efficiency and quality assurance. The company plans to share the technology with pest-control firms in Asia and offer it to other Sri Lankan field-service sectors.

President Dissanayake announced a plan to rapidly revitalize the transport sector and introduce the Lanka Metro Transit bus service, with buses expected by August for a pilot on six main Colombo-area corridors. The plan also includes bus cluster companies, multimodal hubs, rail upgrades and digital systems.

HNB MD/CEO Damith Pallewatte highlights HNB’s Sarusara agripreneur programme (15,000 participants to date, 30,000 target) and a 2026–2030 strategic plan. He warns of banking-sector challenges (liquidity, asset quality, digital risk) and urges ecosystem-building across exports, agriculture, tourism and digital services.

ASPI closed down 0.01% at 23,652.51 with turnover of LKR 4.8bn and net foreign outflow of LKR 42.7m. Banks led turnover (30%), food & beverage and capital goods together contributed 31%; top negatives were RICH, CFIN, JKH, RIL and AEL, while RAL saw net foreign buying and crossings were led by COCO, COMB and DOCK.

The Sri Lanka Export Development Board will run a workshop on Feb 18 titled 'Risk Management, Strategies and Incoterms to Win Competitiveness in International Trade Beyond Borders' for potential and SME exporters at the NDB-EDB Building in Colombo; sessions will be bilingual with practical exercises and limited seats (register via the Trade Facilitation Division).

Salam Ramadan 2026 will run 27 Feb–1 Mar 2026 along Green Path, Colombo, and the organisers are inviting vendors, hotels, F&B operators, retailers and service providers to participate in a curated festival with 50+ stalls and citywide activations after attracting 15,000 visitors in 2025.