News & market updates

Officials reviewed delayed implementation of 2026 budget projects after Sri Lanka spent only 17.4% (about Rs.240 billion of Rs.1,380 billion) of allocated capital expenditure so far this year. They cited procurement delays, institutional bottlenecks and cyclone-related diversions and urged expedited action to boost year-end spending.

Colombo Stock Exchange edged up 0.22% as the ASPI closed 50.23 points higher at 22,436.14, despite foreign investors selling a net Rs 333 million; top contributors were Aitken Spence, Dialog Axiata and Melstacorp.

The U.S. and Iran signed an interim peace deal extending the ceasefire by 60 days, leaving Asian stocks largely steady while oil prices dipped (U.S. crude $75.83, Brent $78.41); investors also digested Fed officials' hawkish comments that lifted yields and shifted market sentiment.

Huawei launched the Alliance on Healthcare & Education AI Digitalization 2.0 (“AHEAD”) at its 2026 Global Education & Healthcare Partners Convention to drive AI-led collaboration and digital transformation in education and healthcare. The Partner Alliance 2.0 will focus on trend insight, empowerment, solution co-creation, marketing, opportunity sharing and expansion.

SLT‑MOBITEL, with the Ministry of Foreign Affairs and SLBFE, launched the Lankakonect mobile app to allow Sri Lankans abroad to register, submit and track consular and employment complaints in real time in Sinhala, Tamil and English.

A Peking University delegation led by Prof. Wang Weijia held high-level meetings in Colombo to explore deeper Sri Lanka–China cooperation, prioritizing trade and FDI in logistics, energy, tourism and Port City Colombo and potential areas like high‑tech manufacturing and pharmaceuticals.

Visa launched 'Click to Pay' in Sri Lanka, a tokenised one-click online checkout to speed up and secure e-commerce payments. Consumers can enroll cards via email or mobile for faster checkouts while issuers and merchants may see higher card usage and payment success rates.

Deloitte Sri Lanka held a client session 'From Compliance to Capital' emphasising climate disclosure (SLFRS S1/S2), decarbonisation pathways and sustainable finance as tools to strengthen business resilience and improve access to capital across telecoms, financial services, manufacturing and agriculture.

Colombo market edged up as the ASPI rose 0.04% (8.62 pts) to 22,385.91 while the S&P SL20 fell 0.17% to 6,210.72. Turnover was Rs.2.56bn on 107m shares, the banking sector led turnover and foreigners were net sellers of about Rs.12.2m.

Kapruka Holdings (KPHL.N0000) reported full-year Profit Before Tax of LKR 37.56m, a 132% turnaround, and quarterly PBT rose 160% to LKR 22.25m. Management attributes the improvement to AI-driven automation, marketplace growth, cross-border USD sales and plans to convert its delivery fleet to EVs.

Kapruka Holdings PLC (KPHL.N0000) returned to profitability for the year to 31 Mar 2026 with PBT of Rs.37.56m on revenue of Rs.1.92bn, and quarterly PBT of Rs.22.25m (up 160% YoY) as revenue grew 19% QoQ. Management credits AI-driven platform, marketplace expansion and cross-border USD sales, plus EV fleet conversion, for improved margins.

UK Trade Envoy Lord Hannett will visit Colombo 17–19 June 2026 to hold talks with government ministers and business leaders to deepen UK–Sri Lanka trade and investment ties and promote use of the UK's Developing Countries Trading Scheme zero-tariff access for Sri Lankan exports. He will engage with exporters including the apparel sector, UK firms operating locally, and stakeholders in clean energy, retail, manufacturing and technology.

Manufacturing PMI rose to 56.6 and Services PMI to 56.9 in May, indicating expansion in both sectors. Manufacturing was driven by food & beverages and textiles, while services growth was led by financial, professional services and IT; outlook buoyed by expected tourist arrivals but risks from the Middle East conflict persist.

Sri Lanka launched the National Export Development Plan (NEDP) 2026–2030 targeting USD 36 billion in export revenue by 2030. The Cabinet-approved plan, prepared by the Ministry and the Export Development Board with ADB support, targets eight priority sectors and upgrades in logistics, customs digitization and SME export readiness.

Yellow House Productions launched HELIXRA™ — Sri Lanka's first free-to-play cultural preservation game platform — on 11 June 2026. The scalable franchise digitises traditional Sri Lankan games into XR-enabled interactive experiences, positioning the studio as a culture-tech IP and preservation initiative.

The Computer Society of Sri Lanka hosted the CSSL National CIO Forum 2026 and unveiled the CIO List 2025 at Shangri‑La Colombo, convening 150+ senior leaders from banks, telecoms, conglomerates and healthcare to emphasise CIOs' role in digital transformation and AI governance.

NeenOpal, in partnership with Amazon Web Services, hosted the AI Catalyst Symposium Sri Lanka 2026 to present practical frameworks for moving AI from pilots to measurable ROI, focusing on use-case identification, governance, scaling, and workforce readiness.

Visa launched 'Click to Pay' in Sri Lanka, introducing tokenized one-click online card payments to speed up checkouts and improve security for consumers, merchants and issuer banks.

A Sweden–Sri Lanka Business Council dialogue study found members prioritise simplified visa procedures, predictable tax rules, smoother compliant capital flows, clearer profit repatriation, reliable banking relations and measures to curb brain drain. The 20-respondent study will guide the Board's priorities and engagement with embassies.

The government presented the National Export Development Plan 2026–2030 to the President, targeting USD 36 billion in export revenue by 2030. The plan names eight priority export sectors (including digital products, electronics, automotive components, processed foods, rubber, minerals and maritime) and sets horizontal enablers such as logistics, trade finance, trade facilitation and ESG capacity building, with ADB technical support.

Sri Lanka launched the National Export Development Plan (NEDP) 2026–2030 targeting USD 36 billion in export revenue by 2030. The plan sets six cross-sector enablers and eight priority sectors — including auto components, minerals, rubber, marine, spices, digital products, electrical/electronics and processed food — to drive export diversification.

The Ministry of Digital Economy and the Securities and Exchange Commission held a joint awareness session on June 15, 2026 to advance regulation of virtual assets, addressing domestic P2P/offshore risks, global regulatory precedents, and KYC/AML, transaction monitoring and blockchain traceability.

Sri Lanka held a Dubai investor forum on June 11 to pitch Port City Colombo as a Special Economic Zone and court Gulf capital to attract FDI into finance, technology, logistics, property and services across South Asia.

Sri Lanka's services PMI rose to 56.9 in May 2026 from 46.7 in April, signalling a rebound led by financial, professional and other personal services, with real estate, IT programming and goods transportation also recording growth; employment declined further.

Digital Economy Ministry and the SEC held a high-level awareness session on virtual assets to advance regulatory alignment and investor protection, covering P2P/offshore risks, KYC/AML, blockchain tracing and international regulatory models. Attendees included SEC, CSE, Central Bank FIU and other stakeholders.

ASPI jumped 3.43% (743.22 pts) to 22,380.65 as markets rallied on signs of a possible end to the Middle East war, with index-weighted counters SAMP, COMB, JKH, MELS and DIAL among top contributors; turnover exceeded Rs.4bn and foreigners were net buyers (Rs.21.1m).

Sri Lanka's Ministry of Digital Economy and the Securities and Exchange Commission have launched a joint initiative to explore and regulate virtual assets and develop a formal regulatory roadmap. The outreach session—which included the Central Bank and Colombo Stock Exchange—covered uses like ETFs, cross-border payments, tokenization and AML/CFT risks.

ORIN Corporation has been appointed Saviynt's exclusive distributor in Sri Lanka, bringing Saviynt’s identity security and governance platform to local enterprises and channel partners to strengthen identity security, governance and digital trust.

DMS Software Technologies launched the DMS IBM Cloudability Managed Service Provider (MSP) Program in Sri Lanka on June 10, 2026, to help enterprises adopt FinOps and optimize cloud spending.

SLASSCOM and BeyondOne launched a national virtual Internship Platform on 15 May to provide structured, project-based virtual internships that bridge academia and industry and support Sri Lanka's IT/BPM talent pipeline; multiple IT firms and universities are piloting the initiative.