News & market updates

PMI: Manufacturing at 53.0 and Services at 58.5 in June 2026, indicating continued expansion in both sectors. Manufacturing growth slowed with production led by food & beverages and firms citing labour shortages and longer supplier delivery times; services expansion was driven by financial/professional services and insurance, with tourism expected to boost activity.

Vietjet Air held high-level talks with the Civil Aviation Authority of Sri Lanka to prepare for the airline's upcoming launch and to strengthen aviation connectivity between Sri Lanka and Vietnam.

Treasury has authorised government institutions to reprice or extend eligible public procurement contracts to reflect higher fuel, freight and material costs, with measures applied retrospectively and effective until 30 September 2026. The Circular targets construction works (using CIDA price-adjustment formulas) and permits use of PPIs, freight/shipping indices or documented cost evidence for other procurements.

Bandaranaike International Airport handled 4,748,481 passenger movements in the first six months of 2026. The airport also recorded 30,659 aircraft movements, 424,856 transit passengers and 1.14 million tourist arrivals (down 1.8% year‑on‑year).

Sri Lanka's Manufacturing PMI was 53 in June and the Services PMI 58.5, indicating continued expansion while manufacturing slowed from May; outlook for both sectors remains positive but downside risks persist from the Middle East conflict and global uncertainties.

Colombo Stock Exchange closed higher as the ASPI rose 0.14% (29.77 pts) to 21,447.57 and the S&P SL20 gained 0.29% to 6,006.07, with market turnover Rs 1.49bn and banks leading turnover at Rs 74.9m. Bukit Darah declared a first interim dividend of Rs 5.73 per share, entitlement July 27, 2026.

Lion Brewery (LION.N0000) has deployed Sri Lanka's first long-haul electric prime mover in its outbound supply chain, supplied by Ceyconnect (a Ceyline Group subsidiary). Ceyconnect plans to expand the electric fleet over time as part of Lion's cleaner-energy and sustainability efforts.

The National Chamber of Exporters renewed an MoU with Ernst & Young to expand support for Sri Lankan exporters on compliance, supply‑chain traceability, sustainability and digital transformation. The partnership will deliver workshops and advisory programmes to help exporters meet US/EU requirements as Sri Lanka pursues a US$36bn export target by 2030.

Sri Lanka Customs collected 125.2 billion rupees in the first 14 days of July, more than 65% of its 192.4 billion-rupee monthly target and on track to outperform the target for a seventh consecutive month. Stronger enforcement, digital scanning, improved valuation and a rebound in imports have driven collections, boosting Treasury revenue.

SLIIT Business School published an international study introducing a new digitalisation index covering 71 countries (2010–2022) that classifies nations as Digital Pioneers, Adapters, or Followers. The research finds digital competitiveness depends on innovation, human capital, cybersecurity, R&D and institutional readiness, not just technology adoption.

A three-night luxury destination wedding for 600 guests at Cinnamon Bentota Beach showcased Sri Lanka's capacity to host international high-end weddings. The event highlighted economic opportunities for hospitality, event production, catering, transport and other local service providers.

Emirates has completed retrofits on 100 aircraft (47 A380s, 53 Boeing 777s) since November 2022 as part of the largest-known airline retrofit programme. The US$5 billion initiative — now past the halfway point toward 219 aircraft — has added 3,800+ Premium Economy seats and will roll out 4K seatback screens and new Safran Z400 seats from Oct 2026.

SLIIT Business School study finds many Sri Lankan shoppers still prefer cash-on-delivery due to security, privacy and payment concerns, creating a digital trust gap that may hinder e-commerce growth. The study urges stronger payment security, data protection, authentication and multi-stakeholder collaboration.

EDB and Expertise France began cooperating on the EU-funded 'Advancing Sustainable Trade between the EU and Sri Lanka' project following a 9 July 2026 meeting to boost sustainable, climate‑resilient access for Sri Lankan exporters to EU markets. The initiative will align trade regulations, support a green transition and enhance SME competitiveness for EU market entry.

The Sri Lanka Shippers' Council urged sweeping trade facilitation reforms to eliminate hidden logistics costs and accelerate digitalisation to boost exporters' competitiveness, speaking at its 60th anniversary and 56th AGM.

Emirates is offering a seasonal strawberry menu on Dubai–UK flights from 13–31 July with strawberry desserts across all cabin classes. Emirates SkyCargo has transported more than 230 tonnes of British strawberries to the UAE since March 2026, partly sourced from Bustanica vertical farm.

Short Circuit appointed five senior leaders across its portfolio: Lahiru Dissanayake as CEO, Kasun Delgolla as CTO, Mevan Perera as CMO (Surge Global & Calcey), Yohan Wijesiriwardane as CEO of Payable, and Steve Ludewyke as CPO of SurgeOS. The restructure shifts the group from a founder-led model toward a leadership-led platform to scale its technology, payments and product businesses.

Vietjet will launch direct Colombo–Ho Chi Minh City flights on 18 August 2026. The airline was also named among HR Asia’s Best Companies to Work For in Asia and won an HR Asia DE&I Award ahead of the route launch.

A 31-member Indian SME delegation from the Federation of Indian Export Organisations held B2B networking sessions with Sri Lankan businesses at the Ceylon Chamber (8–10 July 2026) to explore trade, sourcing and partnership opportunities across pharmaceuticals, engineering, apparel, food/agriculture and infrastructure.

Sri Lanka's High Commission in the UK held a roundtable on 3 July with the SLUKCC and UK officials to strengthen bilateral economic ties and promote Sri Lanka EXPO 2027 in Colombo. Discussions covered macroeconomic reforms, trade and tourism, the UK's DCTS, education partnerships, technology investment and a planned Business Forum in September.

Intex and InMac will be held 5-7 August 2026 at BMICH Colombo, hosting 300+ international companies to support Sri Lanka's apparel industry's US$8 billion export target by 2030. The co-located shows will showcase materials, next-generation garment machinery and seminars on sustainability and digital/automation to modernize the supply chain.

EDB, IFC and the EU ran the 7th Provincial ExpoNavigator Program in Batticaloa on 9–10 June 2026 to boost export readiness of nearly 100 Eastern Province SMEs. The two-day event offered awareness sessions, technical consultations and a Business Clinic to identify high-potential enterprises for continued SLEEI support.

SLIIT Business School study finds many Sri Lankan shoppers still prefer cash-on-delivery due to lack of trust in online payments; platform quality, payment authentication, privacy and reliability were identified as key drivers of consumer confidence.

The Export Development Board (EDB) will collaborate with Expertise France on an EU-funded project to promote sustainable, climate-resilient and circular trade with the EU, focusing on regulatory alignment, green transition measures and SME support.

Australia's High Commissioner Matthew Duckworth reaffirmed support for Sri Lanka's bid to join RCEP and urged continued trade reforms and full digitalisation of border processes to strengthen competitiveness and integrate into regional supply chains.

The Ceylon Chamber of Commerce met Belarusian Ambassador Mikhail Kasko to explore closer private‑sector ties to boost trade in machinery, agriculture and pharmaceuticals and increase exports (apparel, tea, coconut, spices, fresh produce) and tourism via direct air links.

HyperCon 2026, a two-day gaming, esports and digital entertainment convention organized by NXL Entertainment and TRIOSLK, will be held 1-2 August 2026 at the Royal MAS Arena and RCU Skills Centre in Colombo, projected to attract 4,000+ on-site visitors and 100,000+ online viewers.

Saegis Campus and the Event Management Association, in partnership with Pearson UK, launched a Diploma in International Event Management & Marketing Studies to provide industry-integrated education for event professionals. The programme offers hands-on experience at live events organised by EMA member companies to build practical skills and industry connections.

AmCham Sri Lanka led a delegation to the AmChams of Asia Pacific Washington Doorknock (21–24 June 2026) to lobby US policymakers on the US–Sri Lanka bilateral trade agreement, Section 301 issues affecting exporters (notably apparel), and to seek US investment and development finance support.

ADB lowers developing Asia and Pacific growth to 4.9% for 2026 (from 5.5% in 2025), a 0.2 percentage point downgrade from April due to prolonged energy-market disruptions. It raises regional inflation to 4.3% for this year and warns of risks from tighter financial conditions, supply-chain strains and higher fertilizer/commodity costs.