News & market updates

Kapruka Holdings PLC (KPHL) has launched a public Model Context Protocol (MCP) server, making its product catalogue, delivery and checkout accessible to AI assistants. The company also launched the Kapruka Agent Challenge inviting developers to build shopping agents on the platform.

Sri Lanka GDP grew 5.1% year-on-year in Q1 2026, up from 4.7% in the previous quarter. Growth was led by industry (up 7.2%) with mining +19.5% and construction +16.3%, while services rose 3.4% driven by insurance (+22%), IT/BPM (+16.1%) and financial services (+12.8%); agriculture +1.1%.

Sri Lanka has spent 17.4% of its 2026 capital budget, about Rs.240 billion of Rs.1,380 billion, the National Budget Department director told Parliament; officials said some capital expenses will remain unspent and that Rs.20 billion cited was a reallocation after a fuel price hike.

Sri Lanka's real GDP grew 5.1% year-on-year in Q1 2026 to Rs. 3,652,503 million (2015 prices). Growth was led by industry (+7.2%)—notably construction (+16.3%) and mining (+19.5%)—while services rose 3.4% (insurance, IT, financial services) and agriculture grew 1.1%.

Dialog Axiata PLC's market capitalization exceeded Rs. 400 billion, peaking above Rs. 420 billion on June 15 as its share price traded between Rs. 44.90 and Rs. 46.40.

Huawei unveiled a grid-interactive AIDC strategy at the 2026 Global AIDC Industry Summit in Dongguan, promoting '3+1' innovations to build grid-friendly, energy-efficient, high-density AI data centers that maximize tokens per watt and emphasize renewable integration and liquid cooling.

The Sri Lanka Business Council UAE held a 35th-anniversary investment forum in Dubai on 11 June that drew 225 UAE business leaders and investors. Colombo Port City presented investment opportunities and speakers encouraged investment in tourism, hospitality, IT, logistics, manufacturing and renewable energy in Sri Lanka.

Global GIS (Pvt) Ltd signed a Memorandum of Understanding with the University of Ruhuna to collaborate on R&D, product commercialization, consulting, training and to install a GNSS CORS station at the university. The agreement also includes funding support, internships and technology transfer to boost surveying and geospatial capacity.

Sri Lanka will launch the National Export Development Plan (NEDP) 2026–2030 targeting $36 billion in export revenue by 2030, developed by the Export Development Board with ADB technical assistance. The plan sets horizontal enablers (trade facilitation, trade finance, supply chain, ESG) and eight priority verticals including electronics, digital services, processed foods, auto components, rubber, minerals, marine and spices.

Sri Lanka will launch the National Export Development Plan 2026–2030 on 16 June, aiming to lift export revenues to $36 billion by 2030. The EDB, with ADB support, outlines two pillars and eight priority sectors including Auto Components, Minerals, Rubber, Marine, Spices, Digital Products, Electrical & Electronic Components, and Processed Food.

Short Circuit has acquired digital payments platform Payable and will invest $2.5m to scale its payment capabilities. Payable aims to grow its merchant network by 100,000 over four years and roll out solutions like Soundbox and SoftPOS to expand digital payment acceptance in Sri Lanka.

Labour Minister Dr. Anil Jayantha Fernando urged viewing AI as a productivity tool at the ILO conference, noting about 22.8% of Sri Lanka’s workforce is exposed to generative AI. He also announced ratification of ILO Convention No. 190 and a government roadmap to expand the digital economy and skills.

SAARC CCI President Chandi Raj Dhakal met Yunnan Governor Wang Yubo in Kunming to push for expanded trade, investment and connectivity between South Asia and Yunnan, highlighting opportunities in infrastructure, tourism, logistics, digital industries, renewable energy, agriculture and manufacturing.

Sri Lanka's CSE closed up with the ASPI rising 1.75% to 21,642.95 after US President Trump said he cancelled planned strikes on Iran. Banks led turnover and several banks and blue-chips rose, while Dialog Axiata passed AGM resolutions including a final dividend and its shares closed up.

Deloitte Sri Lanka held a 27 May 2026 client session urging climate disclosure as a driver of business resilience and access to capital. Speakers covered operationalising SLFRS S1/S2, climate risk and scenario analysis, decarbonisation, assurance-ready data and sustainable finance.

HighVoltagePR, marking its 10th anniversary, has entered a strategic partnership with Ncatalysts to integrate traditional PR and reputation management with digital performance marketing and digital product capabilities. The collaboration aims to offer combined PR, digital marketing and customer-experience services to Sri Lankan brands.

Colombo Stock Exchange ASPI rose 1.68% (up 357.08 pts) to 21,627.10, with the S&P SL20 up 1.55% as banks supported gains. Market turnover was Rs.666m led by real estate; Colombo Fort Investments and Colombo Investment Trust listed scrip-dividend shares effective June 12, 2026.

Sri Lanka will launch the National Export Development Plan 2026–2030 in Colombo on 16 June 2026, targeting USD 36 billion in export revenues by 2030. The plan sets two pillars (Horizontals and Verticals) and names eight priority sectors including Digital Products, Electrical & Electronic Components, Auto Components, Rubber, Minerals, Marine, Spices, and Processed Food & Beverages.

The India–Sri Lanka Binational Bridge and Tunnel proposal — a ~23 km link estimated to cost US$3.6–5.19bn — could lift tourism by 50–70% and cut some transport costs by up to 50%, reshaping trade, logistics and connectivity. Sri Lanka has paused advancement over technical, environmental and sovereignty concerns.

SLT‑Mobitel's mCash integrated GovPay to process real‑time payments for over 4,090 government services (coverage across ~280 government organisations), enabling on‑the‑spot traffic fine payments via the mCash app, USSD #111#, or over‑the‑counter outlets to boost digital payments and financial inclusion.

Short Circuit acquired Sri Lankan digital payments platform Payable and will invest USD 2.5 million to expand its payment solutions and target an additional 100,000 merchants over the next four years.

Binance's new stock trading product amassed over US$400 million in assets under management in its first week. About 25% of users were under 25, more than 80% of volume came from emerging markets, nearly 40% of trades were under US$100, and 70% of users held positions.

Technoli Institute held an AI-Powered Business Executive programme on 3 June 2026 at Jetwing Colombo Seven with Trident/Microsoft, Flash Health and Jetwing partners, where senior managers built live AI agents and learned AI decision frameworks, security and ethics.

KOKO has joined Mastercard's 'Tap for Change' campaign to channel contactless and KOKO-powered e-commerce transactions into fundraising for the Karapitiya Trail Cancer Hospital. The partnership aims to boost contactless payment adoption and let consumers contribute to cancer care via everyday purchases.

Opposition Leader Sajith Premadasa called on the Government to table in Parliament the Treasury's report on a $2.5 million cyber fraud involving external debt payments. He also warned that conflicting statements from the Government and the Central Bank are creating policy uncertainty and urged a clear fiscal and monetary framework and disclosure of IMF/World Bank/ADB commitments.

Tourism Minister Vijitha Herath said tourism receipts have not fallen but are now reported more accurately after adopting international survey methods, and the apparent drop reflects corrected data. The government is introducing legal and technical steps, including taxing foreign digital platforms and integrating payment gateways, to retain more tourism foreign exchange.

Asian stocks slid as Middle East tensions escalated and oil rose (Brent +0.9% to $92.29/bbl), amplifying inflation concerns and the prospect of further interest-rate moves. Investors are focused on upcoming U.S. CPI data and central bank responses.

Asian equities were mixed with tech stocks leading gains as oil prices eased—Brent fell to $93.84/barrel—after a prior surge linked to fighting in the Middle East; higher oil-driven inflation and rising yields are weighing on markets.

Sri Lanka's central bank cut the mandatory conversion period for exporters' foreign-currency receipts from 90 days to 30 days, requiring conversion by the 10th of the following month. The rule is intended to generate predictable monthly dollar inflows to banks to ease FX shortages and help stabilise the rupee, while tightening exporters' working-capital flexibility.