News & market updates

The Cabinet approved installation of four automatic passenger clearance gates at the departure terminal of Bandaranaike International Airport. The move is part of ongoing 2023 upgrades under an IOM–Japan cooperation funded by a ¥1,170m grant, and four gates have already been installed at arrivals.

Cabinet approved steps to establish the Sri Lanka Industrial Transformation and Innovation Authority by merging the Industrial Development Board, NEDA and the Small Business Development Division to streamline industrial and entrepreneurship services. The ministry is seeking ADB policy-based loan support for the required technological assistance.

The Cabinet approved liquidation of the state-owned Sahasya Investment Company and transferred management of the country's expressway network to a dedicated operational unit within the Road Development Authority. Cabinet said Sahasya made no tangible progress since its 2020 establishment.

Emirates carried 55.6 million passengers in 2025 and placed orders for 73 new aircraft. The airline expanded its A350 network, rolled out Starlink across 232 planes, broadened Premium Economy to 100+ aircraft and launched Emirates Courier Express across 10 markets.

flydubai signed a firm agreement for 150 Airbus A321neo and an MoU for 75 Boeing 737 MAX aircraft, and confirmed Starlink as its new inflight connectivity partner with installations to begin in 2026.

The Colombo stock market gained Rs.84 billion as the ASPI rose 1.42% to 22,445.89. Top contributors included Colombo Dockyard, Melstacorp, Hatton National Bank, Richard Pieris and Commercial Bank, with capital goods, banking and materials driving turnover and hotel stocks seeing buying interest.

Container Transport Owners Association donated Rs.1.5 million to the government's 'Rebuilding Sri Lanka' Fund for relief after Cyclone Ditwah. The contribution was handed to the Secretary to the President in the presence of the Ports Minister.

Colombo Stock Exchange rose 1.49% as the ASPI closed 313.56 points higher at 22,445.89, led by gains in Colombo Dockyard, Melstacorp, HNB and Commercial Bank. Market turnover fell to 3.4 billion rupees and net foreign outflow was 36.73 million rupees, led by John Keells.

Colombo Port handled 6.92m TEUs in Jan–Oct 2025, up 7.1% YoY, with domestic volumes rising 13.9% to 1.1m TEUs and transhipment volumes up 5.1% to 5.52m TEUs; October volumes were 744,792 TEUs (+10.8% YoY).

Sri Lanka sought Chinese support to establish a nationwide EV charging network and to urgently restore railway lines and bridges damaged by Cyclone Ditwah; the Chinese ambassador said Beijing will assess the damage and convey the request to authorities.

TBWA Sri Lanka won Silver – Creative Agency of the Year (Rest of South Asia) at the Campaign Asia-Pacific Agency of the Year Awards. The award recognises the agency’s creative strength, business impact and industry leadership across the region.

Colombo Dockyard PLC (DOCK.N0000) entered contracts in December 2025 to construct two more underwater restaurant structures for Maldivian resorts. The company has completed multiple underwater restaurant and gallery projects, including a 50-seater for OBLU Ailafushi (2022) and 2025 installations.

BRICS Chamber of Commerce India and BRICS Chamber of Commerce Sri Lanka signed an MoU in New Delhi to cooperate on promoting trade, services, investment and tourism.

The Management Club will host the Northern Investment Summit 2026 on 21–22 January 2026 in Jaffna to showcase KPMG-vetted, district-specific bankable proposals aimed at unlocking investment in the Northern Province; Hatton National Bank (HNB) is the official banking partner.

Colombo Stock Exchange opened mixed: ASPI rose 0.29% to 22,132.33 while the S&P SL20 slipped 0.06% to 6,037.79 on turnover of about Rs. 3.7bn and net foreign outflows of Rs. 200.5m. Colombo Dockyard, DFCC and Richard Pieris led gains while John Keells and Commercial Bank fell.

Colombo Dockyard and banking shares lifted the CSE All Share Price Index 0.29%, with the ASPI closing at 22,132.33 and Colombo Dockyard the top gainer at 171.75 rupees. Market turnover fell to 3.7 billion rupees and the exchange recorded a net foreign outflow of 200.46 million rupees led by John Keells.

PickMe (Digital Mobility Solutions Lanka PLC) has written to the Inspector General of Police after independent drivers using its platform faced intimidation, physical assaults and road obstruction in tourist areas such as Ella. The company urged written police directives, a zero-tolerance approach, enforcement reviews and a joint stakeholder forum to protect drivers and tourists.

Sri Win Lanka Travels felicitated its sub agents in Colombo for supporting outbound business travel and for helping send over 200 Sri Lankans to the Canton Fair. The company runs annual Canton Fair trips (~200 visitors) and says participation can help entrepreneurs, including flood-affected businesses, form supplier links and restart operations.

Colombo Stock Exchange closed Friday with the ASPI up 0.50% (109.79 pts) to 22,068.84, re-entering the 22,000 mark. Turnover was over Rs.2.7bn, foreign investors were net buyers (Rs.18.9m), with banking counters and names like DOCK and RICH among top contributors.

Pakistan sold a 75% stake in Pakistan International Airlines for PKR 135 billion (~$483m) to a consortium led by Arif Habib, with the buyer able to buy the remaining 25% within 90 days. The investor must invest PKR 80 billion over five years and 92.5% of the 75% sale proceeds go to the airline.

Aeroform Ltd acquired a 29.9% stake in EML Consultants PLC for Rs. 116.1 million, purchasing 27 million shares at Rs. 4.30 each. EML has 90.9 million shares outstanding and reported a net asset value per share of Rs. 2.11 at end-September 2025; Avanthi Jayatilake holds 51%.

Colombo market closed marginally up with the ASPI +0.15% to 21,959.05, as John Keells Holdings crossings accounted for about 34% of turnover (total turnover > Rs.4.1bn); foreign investors were net sellers of Rs.331.3m.

The Cabinet approved seven new Industry Consultancy Committees covering indigenous medicine, confectionery, traditional handicrafts, chicken-related industries, ornamental fish and seaweed, creative crafts and event management to strengthen policy coordination and industry participation. Each committee will have up to 25 members from state bodies, industry and academia.

The Jaffna International Trade Fair will return 23–25 January 2026 at Muttraweli Ground, featuring 400+ stalls; last year the event attracted 78,452 visitors and 5,000 invited business delegates.

Central Bank says the Western Province accounted for 42.4% of Sri Lanka's nominal GDP in 2024 (nominal GDP 29,899 billion rupees) while the combined share of the other provinces increased, with North Western and Central provinces the next largest contributors.

Over 13,000 containers remain congested at the Port of Colombo after a high-level meeting that discussed temporary easing measures but produced no concrete, time-bound decisions. Proposals included using a new parking yard as an additional Customs exam bay (for foodstuff/OGA cases) and allowing outside-panel examinations at consignees' warehouses.

Fitch assigned a 'neutral' sector outlook for APAC corporates for 2026, forecasting mild improvement in credit metrics and aggregate EBITDA margins rising to just over 15% from ~14.5% in 2025. It flagged risks from geopolitics, US–China tensions and tariffs, China property weakness weighing on construction, and deteriorating outlooks for tech, automotive, chemicals and shipping.

Sri Lanka has yet to fully assess Cyclone Ditwah's economic fallout; the World Bank's rapid estimate puts direct physical damage at $4.1bn (about 4% of GDP), while the government says a comprehensive damage-and-needs assessment will take at least four weeks and likely show higher total costs.

Colombo Stock Exchange closed 0.15% higher as the ASPI rose 32.05 points to 21,959.05, led by gains in selected banking, construction and retail stocks. Top contributors included Senkadagala Finance, Sampath Bank, Bukit Darah, Royal Ceramics and Tokyo Cement; turnover rose to Rs 4.1bn with a Rs 331mn net foreign outflow.